Ecommerce Chapter 8, 9, 12
56) Which of the following is an example of an e-distributor? A) Grainger B) Go2Paper C) The Seam D) Ariba Network
A
Which of the following categories generated the highest percentage of online retail revenue in 2019? A) computers and electronics B) apparel and accessories C) books/music/video D) automobile and automobile parts and accessories
A
________ is an example of an e-distributor. A) Amazon Business B) PowerSource Online C) SupplyOn D) Elemica
A) Amazon Business
Which of the following statements about cloud-based B2B systems is not true? A) Much of the expense of the system is shifted from the B2B network provider to the firm. B) B2B network providers charge customers on a demand basis. C) Network effects apply, enabling the spreading of costs. D) Cloud-based B2B data networks can be implemented in short periods of time.
A) Much of the expense of the system is shifted from the B2B network provider to the firm.
All of the following are forms of collaboration among businesses except: A) RFQs. B) CPFR. C) demand chain visibility. D) marketing coordination and product design.
A) RFQs.
________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers. A) Spot B) Indirect C) Vertical D) Bulk
A) Spot
________ refers to the links that connect business firms with one another to coordinate production. A) Supply chain B) B2B e-commerce C) Vertical market D) Horizontal market
A) Supply chain
Which of the following statements about EDI systems is true? A) They typically serve vertical markets. B) They are seller-side solutions. C) They evolved from private trading exchanges. D) They still play an important role in B2C commerce.
A) They typically serve vertical markets.
All of the following are current major trends in B2B e-commerce, except: A) a movement toward implementing highly centralized supply chains to reduce risk. B) a growing emphasis on the use of business analytics software (business intelligence) to understand very large data sets. C) a growing emphasis on rapid-response and adaptive supply chains rather than lowest-cost supply chains. D) an increase in regional manufacturing and supply chains to attempt to combat the risks of far-flung global networks.
A) a movement toward implementing highly centralized supply chains to reduce risk.
Electronic Data Interchange (EDI) began as a(n) ________ system. A) document automation B) document exchange C) invoice generation D) MRP
A) document automation
An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
A) e-distributor
An ________ provides an online catalog that represents the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium
A) e-distributor
NeweggBusiness is an example of a(n) ________. A) e-distributor B) exchange C) private industrial network D) e-procurement Net marketplace
A) e-distributor
An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. A) exchange B) e-distributor C) e-procurement company D) industry consortium
A) exchange
E-distributors: A) make money by charging a mark-up on products they distribute. B) usually operate "private" markets. C) operate in vertical markets. D) focus on selling direct products
A) make money by charging a mark-up on products they distribute.
Automated order entry systems: A) only show goods from a single seller. B) increased the costs of inventory replenishment. C) are typically owned by the purchasing firm. D) no longer play an important role in B2B commerce.
A) only show goods from a single seller.
The liquidity of a market is measured by all of the following except: A) price transparency. B) number of buyers and sellers in market. C) volume of transactions. D) size of transactions.
A) price transparency.
The last step in the procurement process is: A) sending a remittance payment. B) sending the invoice. C) shipping the goods. D) delivering the goods.
A) sending a remittance payment.
A(n) ________ market is one that provides expertise and products for a specific industry, such as automobiles. A) vertical B) horizontal C) indirect D) buyer-biased
A) vertical
All of the following were parts of the vision during the early days of e-commerce except the belief that: A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. B) online consumers were rational and cost-driven. C) entry costs to the online retail market would be much less than those needed to establish a physical storefront. D) the cost of acquiring customers would be much lower.
Answer: A
For a quick check of a firm's short-term financial health, examine its: A) working capital. B) gross margin. C) long-term debt. D) cost of sales.
Answer: A
Operating margin is defined as: A) operating income or loss divided by net sales revenues. B) operating income or loss divided by total operating expenses. C) net sales revenues divided by net income or loss. D) net assets divided by net liabilities.
Answer: A
Which of the following is not be considered a current asset? A) long-term investments B) cash C) accounts receivable D) marketable securities
Answer: A
Which of the following is not categorized as an operating expense? A) the cost of products being sold B) marketing costs C) administrative overhead D) amortization of goodwill
Answer: A
Which of the following is not one of the central challenges facing the online retail industry? A) lack of physical store presence B) consumer concerns about the privacy of personal information C) inconvenience in returning goods D) delivery delays
Answer: A
Which of the following is not one of the seven major segments of the retail industry? A) electronics and computers B) specialty stores C) gasoline and fuel D) food and beverage
Answer: A
Which of the following statements is not true about the automobile, and automobile parts and accessories, online retail category? A) Most of the revenue in this category is generated from the sales of automobiles. B) Automobile manufacturers use the Internet to deliver branding advertising. C) U.S. franchising law prohibits automobile manufacturers from selling cars directly to consumers. D) Automobile retailing is dominated by dealership networks.
Answer: A
Which of the following is not a key industry strategic factor? A) synergies B) barriers to entry C) industry value chain D) existence of substitute products
Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 9.2: Explain how to analyze the economic viability of an online firm. 9 Copyright © 2019 Pearson Education, Inc.
All of the following statements about the MOTO sector are true except: A) compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. B) the MOTO sector is also referred to as the specialty store sector. C) MOTO was the last technological revolution that preceded e-commerce. D) distribution of catalogs is one of MOTO retailers' biggest expenses.
Answer: B
All of the following were factors that precipitated the growth of MOTO except: A) the national toll-free call system. B) the growth of the cellular phone industry. C) falling long distance telecommunications prices. D) the growth of the credit card industry.
Answer: B
Omni-channel merchants are also referred to as: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.
Answer: B
The lower the ________ compared to revenue, the higher the gross profit. A) assets B) cost of sales C) gross margin D) operating expenses
Answer: B
Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a website. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name.
Answer: B
Which of the following is not a digitally native vertical brand? A) Warby Parker B) Wayfair C) Everlane D) Caspar
Answer: B
Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues? A) gross profit B) net margin C) operating margin D) working capital
Answer: B
________ is a subscription-based retailer using predictive marketing and Big Data? A) Macy's B) Stitch Fix C) Dell D) Lands' End
Answer: B
Current liabilities are debts of the firm that will be due within: A) three months. B) six months. C) one year. D) two years.
Answer: C
The online retail sector of the retail industry is most similar to the ________ sector. A) specialty stores B) general merchandise C) mail order/telephone order (MOTO) D) consumer durables
Answer: C
What is another name for pro forma earnings? A) net margin B) operating income C) earnings before income taxes, depreciation, and amortization (EBITDA) D) generally accepted accounting principles (GAAP) earnings
Answer: C
Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? A) online catalog B) online order, in-store pickup C) online supply-push D) online promotions for offline purchases
Answer: C
Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date? A) working capital B) operating margin C) balance sheet D) gross margin
Answer: C
All of the following are advantages of online retail except: A) lower supply chain costs. B) lower cost of distribution. C) ability to change prices. D) faster delivery of goods.
Answer: D
All of the following have introduced their own versions of Buy buttons except: A) Facebook. B) Pinterest. C) Instagram. D) Tumblr.
Answer: D
Which of the following is not an example of a virtual merchant? A) Overstock B) Wayfair C) Rue La La D) Dell
Answer: D
An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium
B
Apart from Amazon, the top online retail firms in terms of online sales are all primarily ______ firms. A) manufacturer-direct B) omni-channel C) web-only D) catalog merchant
B
Gross margin is defined as gross profit: A) minus total operating expenses. B) divided by net sales revenues. C) divided by cost of sales. D) minus net income.
B
Trans-organizational business processes require _______ to perform. A) one firm B) two independent firms C) three independent firms D) at least ten firms
B
Walmart is using which of the following technologies in its Food Traceability Initiative? A) EDI B) blockchain C) cloud-based B2B system D) collaborative commerce system
B
Which of the following enabled MOTO firms to make an easier transition to e-commerce? A) the national toll-free call system B) the fact that they already had efficient customer order fulfillment processes C) falling long distance telecommunications prices D) the growth of the credit card industry
B
Which of the following is a transaction database that operates on a distributed P2P network that connects all participant members in a single database and is highly secure, reliable, resilient, and inexpensive? A) SCM system B) blockchain C) EDI D) cloud-based B2B system
B
Which of the following statements about B2B marketing is not true? A) The majority of B2B ad spending is aimed at desktops. B) Spending on B2B digital marketing and advertising accounts for about 30% of the total amount spend on digital marketing and advertising. C) LinkedIn is the most common social network used for B2B marketing. D) The disparity between the amount spent on B2B marketing compared to B2C e-commerce reflects the different nature of much of B2B e-commerce when compared to B2C e-commerce.
B
________ is an example of an e-procurement Net marketplace. A) McMaster-Carr B) Ariba C) Amazon Business D) SupplyOn
B
Which of the following is an example of an e-procurement Net marketplace? A) TheSeam B) Ariba C) Grainger D) SupplyOn
B) Ariba
________ was/were the first step in the development of B2B e-commerce. A) Electronic Data Interchange (EDI) B) Automated order entry systems C) Computerized inventory databases D) Digital invoices
B) Automated order entry systems
________ is another name for transorganizational business processes. A) Supply chain management B) Collaborative commerce C) B2B e-commerce D) Value chain management
B) Collaborative commerce
All of the following are weaknesses of EDI except: A) EDI is not well suited for electronic marketplaces. B) EDI lacks universal standards. C) EDI does not provide a real-time communication environment. D) EDI does not scale easily.
B) EDI lacks universal standards.
Which of the following is not a typical barrier to the implementation of a private industrial network? A) It requires participating firms to share sensitive data. B) It requires the large network owners to give up some of its independence. C) It requires a significant investment of time and money. D) It requires a change of mindset and behavior of employees.
B) It requires the large network owners to give up some of its independence.
________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. A) Having an adaptive supply chain B) Tight coupling C) Supply-chain management D) Materials requirement planning
B) Tight coupling
The term BYOD refers to employees: A) working from home. B) being allowed or encouraged to use their own mobile devices and laptops. C) using mobile devices for work. D) bringing work devices to the home.
B) being allowed or encouraged to use their own mobile devices and laptops.
Which of the following primarily deals with indirect goods? A) e-distributors and industry consortia B) e-distributors and e-procurement Net marketplaces C) exchanges and industry consortia D) exchanges and e-procurement Net marketplaces
B) e-distributors and e-procurement Net marketplaces
Which of the following primarily serves horizontal markets? A) e-distributors and exchanges B) e-distributors and e-procurement Net marketplaces C) e-procurement Net marketplaces and industry consortia D) exchanges and industry consortia
B) e-distributors and e-procurement Net marketplaces
An ________ primarily serves businesses that buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium
B) e-procurement Net marketplace
Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia.
B) existing EDI networks.
All of the following are important trends in B2B e-commerce in 2016-2017, except: A) the growing emphasis on obtaining real-time data. B) growing emphasis on lowest cost supply chains. C) generation and management of huge big data repositories. D) an increase in regional manufacturing and supply chains.
B) growing emphasis on lowest cost supply chains.
All of the following are potential benefits of B2B e-commerce except: A) increased production flexibility. B) increased product cycle time. C) increased opportunities to collaborate with suppliers and distributors. D) increased visibility and real-time information sharing among all participants in the supply chain network.
B) increased product cycle time.
Office supplies are an example of: A) direct goods. B) indirect goods. C) MRO goods. D) distributed goods.
B) indirect goods.
TheSeam is an example of an ________. A) exchange B) industry consortium C) e-procurement Net marketplace D) e-distributor
B) industry consortium
An example of an indirect good in the fast-food industry is: A) mustard. B) paper napkins. C) beef. D) sugar.
B) paper napkins.
B2B e-commerce websites: A) are a predecessor of industry consortia. B) tend to serve horizontal markets. C) are buyer-side solutions. D) are considered a type of EDI system.
B) tend to serve horizontal markets.
In 2019, B2B e-commerce accounted for approximately ___ of all B2B commerce. A) 22% B) 49% C) 51% D) 78%
C
In 2019, which of the following accounted for the smallest amount of B2B commerce? A) EDI B) private industrial networks C) Net marketplaces D) traditional B2B
C
The majority of inter-firm trade involves: A) spot purchasing of direct goods. B) contract purchasing of indirect goods. C) contract purchasing of direct goods. D) spot purchasing of indirect goods.
C
________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain. A) Green B) Sustainable C) Lean D) Just-in-time
C) Lean
The essential characteristic of ________ are they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade. A) industry communications B) exchanges C) Net marketplaces D) horizontal markets
C) Net marketplaces
Which of the following is another name for a private industrial network? A) industry consortia B) EDI system C) PTX D) PINS
C) PTX
________ are the fastest growing form of B2B e-commerce. A) R-distributors B) Exchanges C) Private industrial networks D) Industry consortiums
C) Private industrial networks
Supply chain ________ refers to differentiating a firm's products or prices based on superior supply chain management. A) management B) simplification C) competition D) collaboration
C) competition
All of the following have led to the development of outsourcing of manufacturing around the world except: A) technology. B) globalization of trade. C) environmental concerns. D) high levels of wage disparity between the developed and undeveloped worlds.
C) environmental concerns.
An ________ primarily serves businesses that buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
C) exchange
Which of the following primarily deals with direct goods? A) e-distributors and independent exchanges B) exchanges and e-procurement Net marketplaces C) exchanges and industry consortia D) e-procurement Net marketplaces and industry consortia
C) exchanges and industry consortia
EDI document structures are defined by: A) a single international standards body. B) individual suppliers and buyers. C) industry committees. D) each purchaser.
C) industry committees.
Which of the following is a method of inventory cost management that seeks to eliminate excess inventory? A) lean production B) sustainable production C) just-in-time production D) supply chain simplification
C) just-in-time production
All of the following are potential benefits of B2B e-commerce except: A) lower administrative costs. B) lower search costs. C) lower price transparency. D) lower transaction costs.
C) lower price transparency.
31) All of the following are major technology trends in B2B e-commerce in 2020-2021, except: A) a movement of B2B systems to cloud computing providers as a means of slowing rising technology costs. B) a growing emphasis on the use of business analytics software (business intelligence) to understand very large data sets. C) a growing use of the mobile platform for B2B systems. D) a decrease in the use of social network platforms.
D
All of the following are strategic factors that pertain specifically to a firm and its related businesses except: A) core competencies. B) synergies. C) technology. D) power of customers.
D
In 2020, it was estimated that about what percentage of Internet users over the age of 14 would make a purchase at an online retail store? A) 40% B) 60% C) 70% D) 80%
D
Which of the following is not a major trend in online retail for 2020-2021? A) Buying online has become a normal, mainstream, everyday experience. B) The average annual purchase of online buyers continues to increase. C) The number of online buyers continues to increase. D) The Covid-19 pandemic is expected to create a decrease in e-commerce retail purchases.
D
Which of the following statements about Walmart's Global Replenishment System (GRS) is not true? A) GRS is an online analytics package. B) GRS is a just-in-time inventory management system. C) GRS is predictive, not just reflective, of past sales. D)To use GRS and make decisions about order sizes, vendors must first input data to the system in a spreadsheet format
D
Analysts predict that B2B e-commerce in the United States will grow to approximately ________ by 2024. A) $9.8 billion B) $98 billion C) $980 billion D) $9.8 trillion
D) $9.8 trillion.
________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles. A) SCM B) Social e-commerce C) EDI D) Collaborative commerce
D) Collaborative commerce
A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. A) EDI B) ERP C) CPFR D) SCM
D) SCM
Which of the following is not a characteristic of the use of social networks in B2B e-commerce? A) It is typically unstructured. B) It helps develop a more personal relationship between participants in the supply chain. C) It enables participants to make decisions based on current conditions. D) They are always private.
D) They are always private.
A(n) ________ supply chain is one in which the labor conditions in low-wage, underdeveloped producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies. A) sustainable B) ethical C) lean D) accountable
D) accountable
All of the following are examples of direct goods in the auto industry except: A) sheet steel. B) shatter-resistant glass. C) rubber molding. D) desktop computers.
D) desktop computers.
Which of the following primarily involves long-term sourcing? A) e-distributors and exchanges B) e-distributors and industry consortia C) e-procurement Net marketplaces and exchanges D) e-procurement Net marketplaces and industry consortia
D) e-procurement Net marketplaces and industry consortia
Walmart's global supply chain has been criticized for all of the following except: A) exploiting labor in underdeveloped countries. B) bribing officials. C) wasting energy. D) failing to be efficient.
D) failing to be efficient.
Collaborative commerce systems: A) focus on structuring intra-firm communications. B) bring customers into the product development phase. C) provide open, competitive marketplaces. D) foster sharing sensitive internal information with suppliers and purchasers.
D) foster sharing sensitive internal information with suppliers and purchasers.
An ________ serves businesses that primarily buy direct goods on a contract purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
D) industry consortium
What is the first step in the procurement process? A) negotiate price B) qualify the seller and its products C) issue a purchase order D) search for suppliers
D) search for suppliers
