Chapters 7-12 E-commerce – Flashcards
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All of the following were popular types of online marketing before 2007 except: A) e-mail. B) corporate Web sites. C) mobile marketing. D) display ads.
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C) mobile marketing.
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Which of the following is not true about social marketing? A) More than 50% of Twitter's ad revenues are generated by desktop users. B) Social marketing is growing at around 30% a year. C) Social marketing differs markedly from traditional online marketing. D) In social marketing, business cannot tightly control their brand messaging.
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A) More than 50% of Twitter's ad revenues are generated by desktop users.
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Which of the following is not true about mobile marketing? A) Mobile marketing is the fastest growing form of online marketing. B) Mobile marketing is growing at around 60% a year. C) A substantial part of mobile marketing should be counted as social marketing. D) People use most of their mobile minutes while they are on the go.
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D) People use most of their mobile minutes while they are on the go.
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The second most popular social network in terms of average minutes per visitor is: A) Google+. B) Pinterest. C) LinkedIn. D) Tumblr.
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D) Tumblr.
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Which of the following purchased Tumblr in May 2013? A) Facebook B) Yahoo C) Google D) Twitter
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B) Yahoo
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Which of the following is the first step in the social marketing process? A) community B) amplification C) fan acquisition D) engagement
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C) fan acquisition
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Encouraging users to click a Like button is an example of which step in the social marketing process? A) fan acquisition B) brand strength C) community D) amplification
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D) amplification
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Your Facebook News Feed includes all of the following except: A) status updates. B) app activity. C) Likes. D) tweets.
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D) tweets.
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Which of the following statements about Graph Search is not true? A) It relies on Google to supplement its search results. B) It is a semantic search engine. C) It is a social search engine. D) It includes photos.
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A) It relies on Google to supplement its search results.
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Ads that appear in a Facebook user's News Feed are called: A) Marketplace Ads. B) Promoted Ads. C) Page Post Ads. D) Brand Ads
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C) Page Post Ads.
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Which of the following do Facebook users spend the most time on? A) News Feed B) Photos C) Profiles D) Graph Search
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A) News Feed
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Which of the following is a history of your actions on Facebook? A) News Feed B) Timeline C) Ticker D) Social Graph
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B) Timeline
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Which of the following statements is not true? A) About 50% of Facebook's ad revenue in 2014 is expected to come from its mobile ad platform. B) The only way to access Facebook from a mobile device is to use a mobile app. C) Mobile ads are displayed in users' News Feeds. D) Facebook's mobile ad revenues are its fastest growing revenue stream.
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B) The only way to access Facebook from a mobile device is to use a mobile app.
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All of the following marketing tools on Facebook require payment except: A) Brand Pages. B) Right-Hand Sidebar Ads. C) News Feed Page Post Ads. D) Mobile Ads.
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A) Brand Pages.
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The ratio of impressions to fans is a measure of: A) engagement. B) amplification. C) community. D) fan acquisition.
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D) fan acquisition.
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Which of the following provides marketers with a real-time digital dashboard so they can see tweet activity about a TV show, commercial, or brand? A) Enhanced Profile Pages B) Amplify C) Lead Generation Cards D) Promoted Accounts
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B) Amplify
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Which of the following involves a coupon or other promotional offer that appears in users' Twitter timeline? A) Promoted Tweet B) Promoted Trend C) Promoted Account D) Lead Generation Card
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D) Lead Generation Card
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Which of the following statements about Pinterest is not true? A) Pinned photos and photo boards are available to all Pinterest users. B) Pinterest users are overwhelmingly female. C) Pinterest enables users to integrate their pins into their Facebook News Feeds and Twitter streams. D) Pinterest is the only one of the major social networks that does not accept paid advertising.
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D) Pinterest is the only one of the major social networks that does not accept paid advertising.
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Which of the following are features of both Pinterest and Twitter? A) tweets B) hashtags C) pins D) Image Hover widget
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B) hashtags
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All of the following are Pinterest marketing tools except: A) Brand pages. B) Product Pins. C) Promoted Pins. D) Promoted Accounts.
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D) Promoted Accounts.
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The number of people exposed to pins is a measure of which of the following? A) engagement B) community C) brand strength D) fan acquisition
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D) fan acquisition
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Which of the following is an online service specifically aimed at measuring the impact of Pinterest and other visual social media? A) TweetDeck B) Curalate C) Amplify D) Webtrends
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B) Curalate
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Which of the following is the top app in terms of both audience size and share of time spent? A) YouTube B) iTunes C) Twitter D) Facebook
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D) Facebook
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How many retail-oriented apps are there in the top 25 apps? A) 0 B) 1 C) 2 D) 5
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C) 2
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Which of the following statements is not true? A) Google is the leading display ad site on mobile devices. B) Google is the largest distributor of video ads on the mobile platform. C) Mobile advertising is dominated by Google. D) Google charges more for desktop ads than it charges for mobile ads.
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A) Google is the leading display ad site on mobile devices.
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Which of the following is the most popular use for mobile devices? A) shopping B) socializing C) entertainment D) performing tasks, such as finances
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C) entertainment
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Physical retail goods accounted for around what percentage of m-commerce sales in 2014? A) 55% B) 65% C) 75% D) 85%
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D) 85%
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Which of the following categories do people most use their mobile devices for? A) entertainment B) socializing C) shopping D) reading news and magazines
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A) entertainment
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How many apps do users regularly use a month? A) 10 B) 25 C) 30 D) 50
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B) 25
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In 2014, mobile marketing was about ________% of all online marketing. A) 15% B) 25% C) 35% D) 50%
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C) 35%
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Which of the following accounts for the most mobile ad spending? A) display ads B) search engine advertising C) video ads D) SMS text messages
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B) search engine advertising
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Which of the following is not a major provider of mobile display advertising? A) MoPub B) iAd C) AdMob D) Webtrends
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D) Webtrends
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Which of the following is another term for amplification? A) impressions B) reach C) conversation rate D) conversion ratio
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B) reach
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Which of the following is currently a small part of the online marketing universe, but is expected to triple over the next 5 years? A) local marketing B) location-based mobile marketing C) mobile marketing D) social marketing on Facebook
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B) location-based mobile marketing
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Macy's deployed which of the following technologies in all its retail stores in 2014? A) QR codes B) iBeacon C) E9-1-1 D) Geo-search
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B) iBeacon
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Which of the following earns the most location-based marketing revenue? A) Twitter B) Apple C) Facebook D) Google
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D) Google
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Apple's iBeacon uses which of the following technologies? A) BLE B) NFC C) E9-1-1 D) QR codes
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A) BLE
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A recent Google survey found that ________ % of smartphone users visit a store within a day of conducting a local search. A) 15 B) 25 C) 50 D) 75
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C) 50
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All of the following are examples of dark social except: A) e-mail B) tweets C) SMS texts D) Snapchat
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B) tweets
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Google uses which of the following to build a global database of wireless access points and their geographic locations? A) E9-1-1 B) Street View cars C) iBeacons D) BLE
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B) Street View cars
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Facebook's share price fell dramatically after its IPO because investors feared that: A) Facebook's new marketing solutions would be difficult to monetize. B) new social networks such as Instagram were cannibalizing Facebook's audience. C) privacy concerns were driving users away. D) Facebook would be unable to increase advertising revenues fast enough to justify its price.
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D) Facebook would be unable to increase advertising revenues fast enough to justify its price.
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Which of the following allows Facebook to track user behavior on other sites and then sell the information to marketers? A) Open Graph B) Like button C) hashtags D) Whatsapp
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B) Like button
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Which of the following is not true about Facebook News Feed Page Post Ads? A) They have a tiny tag indicating that they are sponsored. B) They can be liked, shared, and commented on, just like any News Feed post. C) They cannot contain links. D) They have social context
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C) They cannot contain links.
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How does Google Analytics track user behavior at a participating Web site? A) cookies B) beacons C) server logs D) super cookies
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B) beacons
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Which analytics tool did Fairmont Hotel use to measure the effectiveness of its online marketing and advertising? A) Webtrends B) IBM Digital Analytics C) Google Analytics D) A custom Hadoop solution
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C) Google Analytics
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Companies are not permitted to collect personal information from children under the age of ________ without parental consent. A) 8 B) 10 C) 13 D) 16
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C) 13
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Which of the following was the object of the FTC's first-ever COPPA enforcement action involving mobile apps? A) Disney's Playdom B) W3 Innovation C) Snapchat D) Yelp
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B) W3 Innovation
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How can a smartphone's gyroscope and accelerometer be used in product marketing? A) to speed up delivery of large multimedia files B) to locate the user's geographical position C) to enhance user interaction with mobile multimedia D) to provide accurate data on the user's destination and speed
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C) to enhance user interaction with mobile multimedia
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Which social marketing proved the most effective for ExchangeHunterJumper.com? A) Facebook B) YouTube C) Pinterest D) Instagram
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A) Facebook
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Which of the following most helped Dagny Aslin of ExchangeHunterJumper.com in establishing her brand in the niche area of selling high-end competition horses? A) integrating online and offline marketing techniques to establish a consistent brand B) adapting marketing techniques to keep up with new Internet technologies C) valuing quality over quantity at each stage in the Web site development process D) establishing customer needs and habits as the top priority in all marketing decisions
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D) establishing customer needs and habits as the top priority in all marketing decisions
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Which of the following e-commerce technology dimensions creates greater opportunities for cyberbullying? A) richness B) interactivity C) social technology D) ubiquity
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C) social technology
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Which of the following e-commerce technology dimensions has the potential to reduce cultural diversity in products? A) richness B) interactivity C) information density D) global reach
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D) global reach
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Which of the following is not one of the four basic principles shared by ethical schools of thought in western culture? A) accountability B) privacy C) due process D) liability
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B) privacy
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What is the first step in analyzing an ethical dilemma? A) Define the conflict or dilemma and identify the higher-order values involved. B) Identify the potential consequences of your opinions. C) Identify the options you can reasonably take. D) Identify and describe the facts.
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D) Identify and describe the facts.
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Which ethical principle states that, when confronted with an ethical dilemma, individuals should take the action that achieves the greater value for all of society? A) the Golden Rule B) Universalism C) the Collective Utilitarian principle D) the Social Contract rule
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C) the Collective Utilitarian principle
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Which ethical principle emphasizes putting oneself into the place of others and thinking of oneself as the object of the decision? A) the Golden Rule B) Universalism C) the Collective Utilitarian principle D) the Social Contract rule
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A) the Golden Rule
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Which ethical principle asks you to assume that virtually all tangible and intangible objects are owned by someone else unless there is a specific declaration otherwise? A) the Golden Rule B) the Slippery Slope C) the Social Contract rule D) No Free Lunch
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D) No Free Lunch
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Which ethical principle states that if an action cannot be taken repeatedly, then it is not right to take at all? A) Universalism B) the Slippery Slope C) the Social Contract rule D) the Golden Rule
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B) the Slippery Slope
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Which ethical principle asks you to consider the impact of your decision if the principles underlying your decision became an organizing principle of the entire society? A) the Golden Rule B) Risk Aversion C) the Slippery Slope D) the Social Contract rule
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D) the Social Contract rule
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Which ethical principle tells you that it is wise to assume perfect information markets? A) the Golden Rule B) the New York Times test C) the Social Contract rule D) the Collective Utilitarian principle
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B) the New York Times test
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Which ethical principle states that when confronted with an ethical dilemma, an individual should take the action that produces the least harm, or the least potential cost? A) the Slippery Slope B) Risk Aversion C) No Free Lunch D) the Collective Utilitarian principle
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B) Risk Aversion
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Which of the following basic ethical concepts plays an important role in defining privacy? A) responsibility B) accountability C) liability D) due process
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D) due process
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Which of the following is not aimed at strengthening the ability of law enforcement agencies to monitor Internet users without their knowledge? A) the USA PATRIOT Act B) the Homeland Security Act C) the Communications Assistance for Law Enforcement Act D) the E-Government Act
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D) the E-Government Act
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Which of the following tools can companies use to track user statements and views on newsgroups, chat groups, and other public forums? A) cookies B) digital wallets C) search engines D) shopping carts
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C) search engines
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Which of the following can be used to record all keyboard activity of a user? A) shopping carts B) trusted computing environments C) spyware D) DRM
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C) spyware
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Which of the following is not one of the issues complicating the taxation of e-commerce sales? A) Taxes raised are used for different government purposes. B) Sales taxes and policies vary by state and country. C) Retailers legally only have to charge sales tax if they have operations located in the same state as a consumer. D) Small online businesses are unable to manage sales taxes to thousands of different jurisdictions.
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A) Taxes raised are used for different government purposes.
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Which of the following is a tiered notice and response system aimed at reducing copyright infringement over P2P networks? A) the CAS B) FIP C) Surfright D) the Open Internet Order
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A) the CAS
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Which of the following statements about industry self-regulation regarding privacy is not true? A) OPA members are required to implement the OPA's privacy guidelines. B) The primary focus of industry efforts has been the use of online "seals" that attest to the site's policies. C) Industry efforts have not so far succeeded in reducing American fears of privacy invasion. D) The NAI's privacy policies have established the TRUSTe seal.
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D) The NAI's privacy policies have established the TRUSTe seal.
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The sharing of a user's stored cookie information between Web sites and without the user's knowledge is: A) legal in the United States but illegal in Europe. B) illegal in the United States but legal in Europe. C) legal in both the United States and Europe. D) illegal in both the United States and Europe.
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A) legal in the United States but illegal in Europe.
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Which of the following requires financial institutions to inform consumers of their privacy policies and permits consumers some control over their records? A) Freedom of Information Act B) Gramm-Leach-Bliley Act C) COPPA D) HIPAA
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B) Gramm-Leach-Bliley Act
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A social consequence of the richness of Internet information is: A) an increase in shallowness. B) an increase in the ease of creating misleading information. C) very persuasive messages might reduce the need for multiple independent sources of information. D) an increase in vulnerability to hacking attacks.
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C) very persuasive messages might reduce the need for multiple independent sources of information.
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Which of the following is a core Fair Information Practices (FIP) principle? A) Choice/Consent B) Access/Participation C) Security D) Enforcement
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A) Choice/Consent
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Which of the FTC's Fair Information Practices (FIP) principles requires identification of the collector of data? A) Notice/Awareness B) Choice/Consent C) Access/Participation D) Security
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A) Notice/Awareness
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Which of the FTC's Fair Information Practices (FIP) principles requires opt-in or opt-out policies to be in place? A) Notice/Awareness B) Choice/Consent C) Access/Participation D) Security
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B) Choice/Consent
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What is the FTC recommendation regarding choice as it relates to personally identifiable information (PII)? A) Require firms to have consumers affirmatively opt-in before PII is collected. B) Require firms to allow consumers to opt-out before PII is collected. C) Make collection of PII illegal. D) Require robust notice only before PII is collected.
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A) Require firms to have consumers affirmatively opt-in before PII is collected.
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"Do Not Track" falls under which of the following principles in the FTC's new privacy framework? A) Privacy by Design B) Simplified Choice C) Greater Transparency D) Scope
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B) Simplified Choice
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Which of the following technologies allows you to send e-mail without a trace? A) anonymous surfing B) P3P C) anonymous remailers D) public key encryption
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C) anonymous remailers
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Which pricing plan charges fees to e-commerce firms based on the amount of traffic they generate? A) highway pricing B) cap pricing C) usage-based billing D) congestion pricing
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A) highway pricing
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What is the major reason that the Internet has such potential for destroying traditional conceptions and implementations of intellectual property law? A) the ability to make perfect copies of digital works at little cost B) the anonymous nature of the Internet C) the support for instant peer-to-peer communication D) the use of standards for file formats
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A) the ability to make perfect copies of digital works at little cost
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Which of the following protects original forms of expression in a tangible medium? A) trade secret law B) copyright law C) patent law D) trademark law
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B) copyright law
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How long does copyright protection extend for corporate-owned works? A) 25 years B) 50 years C) 75 years D) 95 years
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D) 95 years
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Which of the following situations would not qualify for the fair use exception to U.S. copyright law? A) A professor clips a newspaper article just before class and distributes copies of it to his class. B) A journalist quotes a paragraph from a book in a review of the book. C) A student copies a photograph of his favorite band from a Web site created by the band's record label and places it on the student's personal Web site. D) Google posts thumbnail images of books in the Google Book Search Project.
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C) A student copies a photograph of his favorite band from a Web site created by the band's record label and places it on the student's personal Web site.
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All of the following are factors that will be considered in determining whether use of copyrighted material is "fair use" except the: A) nature of the work used. B) amount of the work used. C) market effect of the use. D) free availability of the work on the Web.
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D) free availability of the work on the Web.
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Downloading music tracks owned by record companies without paying for them is an example of a violation of: A) patent law. B) copyright law. C) trademark law. D) privacy law.
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B) copyright law.
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All of the following are possible penalties for violating the Digital Millennium Copyright Act (DMCA) except: A) up to ten years imprisonment for a first offense. B) fines up to $500,000 for a first offense. C) fines up to $1 million for a repeat offense. D) restitution to the injured parties for any losses due to infringement.
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A) up to ten years imprisonment for a first offense.
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All of the following statements about the Digital Millennium Copyright Act (DMCA) are true except: A) the DMCA makes it illegal to circumvent technological measures to protect works. B) the DMCA makes Internet Service Providers (ISPs) responsible and accountable for hosting Web sites or providing services to infringers regardless of whether the ISP is aware of infringement. C) the DMCA requires search engines to block access to infringing sites. D) the DMCA allows libraries to make digital copies of works for internal use only.
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B) the DMCA makes Internet Service Providers (ISPs) responsible and accountable for hosting Web sites or providing services to infringers regardless of whether the ISP is aware of infringement.
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Which of the following allows someone to obtain an exclusive monopoly on the ideas behind an invention for 20 years? A) copyright law B) trade secret law C) patent law D) trademark law
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C) patent law
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All of the following statements about patents are true except: A) it is more difficult to obtain a copyright than it is to obtain a patent. B) the four types of inventions protected by patent law are machines, manmade products, compositions of matter, and processing methods. C) computer programs can be patented. D) in order to be patented, an invention must be nonobvious.
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A) it is more difficult to obtain a copyright than it is to obtain a patent.
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Which case was instrumental in paving the way for Internet business methods patents? A) Brown Bag v. Symantec B) State Street Bank & Trust Co. v. Signature Financial Group, Inc. C) Alice Corporation Pty. Ltd. v. CLS Bank International D) Ticketmaster Corp. v. Tickets.com
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B) State Street Bank & Trust Co. v. Signature Financial Group, Inc.
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Amazon has a patent on: A) download-based sales. B) display of third-party advertisements in floating windows. C) one-click purchasing. D) hyperlinks.
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C) one-click purchasing.
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Disputes over federal trademarks involve establishing: A) underlying ideas. B) intent. C) piracy. D) infringement.
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D) infringement.
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Registering a domain name similar or identical to trademarks of others to extort profits from legitimate holders is an example of: A) cybersquatting. B) cyberpiracy. C) framing. D) metatagging.
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A) cybersquatting.
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Which of the following handles cybersquatting cases under its Uniform Dispute Resolution procedures? A) ICANN B) FTC C) WIPO D) USPTO
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C) WIPO
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Registering a domain name similar or identical to trademarks of others to divert Web traffic to their own sites is an example of: A) cybersquatting. B) cyberpiracy. C) framing. D) metatagging.
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B) cyberpiracy.
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Registering the domain name Faceboik.com with the intent to divert Web traffic from people misspelling Facebook.com is an example of: A) cybersquatting. B) typosquatting. C) metatagging. D) linking.
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B) typosquatting.
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In which of the following cases did the U.S. Supreme Court rule that basic business methods cannot be patented? A) State Street Bank & Trust v. Signature Financial Group, Inc. B) Bilski et al. v. Kappos C) Alice Corporation Pty. Ltd. v. CLS Bank International D) Brown Bag Software v. Symantec Corp.
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C) Alice Corporation Pty. Ltd. v. CLS Bank International
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The display of a third-party's Web site or page within your own Web site is called: A) cybersquatting. B) metatagging. C) framing. D) deep linking.
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C) framing.
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The President's Council of Advisors on Science and Technology has called for all of the following except: A) a consumer privacy bill of rights. B) a data breach law requiring firms to report losses of consumer data. C) amendment of the Electronic Communications Privacy Act to strengthen protections against government surveillance. D) a blanket prohibition on commercial data brokers.
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D) a blanket prohibition on commercial data brokers.
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Comcast's proposed merger with which of the following would make it the high-speed Internet provider for close to 40% of American homes? A) Cablevision B) AT&T C) Verizon D) Time Warner Cable
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D) Time Warner Cable
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According to data from Pew Research Center, which of the following is the action which the highest percentage of Internet users has taken to preserve their privacy online? A) used an anonymous Web browsing service B) encrypted their communications C) cleared Web browser history and cookies D) posted comments online anonymously
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C) cleared Web browser history and cookies
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Which of the following is not a major trend in online retail for 2014-2015? A) About 90% of Internet users in the United States are now online shoppers. B) Lunchtime purchases are the fastest growing time segment for online retail purchases. C) Online retailers increase the use of interactive marketing tools such as blogs and user-generated content. D) Virtual merchants using a subscription-based revenue model emerge.
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B) Lunchtime purchases are the fastest growing time segment for online retail purchases.
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In the United States, the service sector accounts for approximately ________ % of the United States GDP. A) 10 B) 30 C) 50 D) 80
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D) 80
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Eight of the top ten fastest-growing e-commerce merchants from 2003 to 2013 were: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.
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B) bricks-and-clicks companies.
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Omni-channel merchants are also referred to as: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.
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B) bricks-and-clicks companies.
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Which of the following is a subscription-based retailer using predictive marketing and Big Data? A) Macy's B) Birchbox C) Dell D) Lands' End
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B) Birchbox
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The MOTO sector of the retail industry is most similar to the ________ sector. A) specialty stores B) general merchandise C) online retail sales D) consumer durables
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C) online retail sales
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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
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A) electronics and computers
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Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve: A) retailing goods. B) personalization. C) information brokering. D) providing hands-on services.
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D) providing hands-on services.
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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.
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B) the MOTO sector is also referred to as the specialty store sector.
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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
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B) the growth of the cellular phone industry.
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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) Web 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.
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A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.
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Which of the following launched trials of Buy buttons in 2014? A) Facebook and Pinterest B) Twitter and Pinterest C) Twitter and Facebook D) Pinterest and Tumblr
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C) Twitter and Facebook
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In 2014, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store? A) 35% B) 55% C) 75% D) 95%
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C) 75%
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Which of the following has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent? A) Yelp B) TripAdvisor C) Angie's List D) TripExpert
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A) Yelp
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All of the following are examples of Amazon Web Services except: A) Amazon Prime. B) Amazon S3. C) Amazon EC2. D) Amazon Glacier.
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A) Amazon Prime.
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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.
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D) faster delivery of goods.
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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
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A) lack of physical store presence
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Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? A) online Web catalog B) online order, in-store pickup C) online supply-push D) online promotions for offline purchases
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C) online supply-push
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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
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A) synergies
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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.
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D) power of customers.
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The lower the cost of sales compared to ________, the higher the gross profit. A) assets B) revenue C) gross margin D) operating expenses
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B) revenue
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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.
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B) divided by net sales revenues.
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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
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A) the cost of products being sold
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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.
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A) operating income or loss divided by net sales revenues.
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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
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C) earnings before income taxes, depreciation, and amortization (EBITDA)
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Which of the following would not be considered a current asset? A) long-term investments B) cash C) accounts receivable D) marketable securities
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A) long-term investments
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Current liabilities are debts of the firm that will be due within: A) three months. B) six months. C) one year. D) two years.
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C) one year.
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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) working capital.
question
Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a Web site. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name.
answer
B) building and maintaining physical stores.
question
All of the following statements about Amazon are true except: A) Amazon did not show a profit in 2013. B) Amazon is at the forefront of the "infrastructure as a service" market. C) eBay can be considered a competitor of Amazon's. D) Amazon continues to generate revenue primarily by selling products
answer
A) Amazon did not show a profit in 2013.
question
All of the following are challenges faced by bricks-and-clicks firms except: A) coordinating prices across channels. B) handling returns of Web purchases at retail outlets. C) building a credible Web site. D) building a brand name.
answer
D) building a brand name.
question
All of the following are challenges for catalog merchants except: A) high costs of printing and mailing. B) building a credible Web site. C) the need to bring staff in or manage new technology. D) building sophisticated order entry and fulfillment systems.
answer
D) building sophisticated order entry and fulfillment systems.
question
Which of these job recruitment sites is a job site aggregator? A) Indeed B) Craigslist C) Monster D) CareerBuilder
answer
A) Indeed
question
The term supply-push refers to: A) making products prior to orders being received based on estimated demand. B) waiting for orders to be received before building a product. C) channel conflict. D) multi-channel manufacturers who sell directly online to consumers.
answer
A) making products prior to orders being received based on estimated demand.
question
All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: A) moving to a demand-pull model. B) high cost structures. C) developing a fast-response online order and fulfillment system. D) channel conflict.
answer
B) high cost structures.
question
Which of the following is not true about sharing economy firms? A) Their growth is supported by the use of online reputation systems based on peer review. B) Sharing economy firms that choose a marketplace that is too small to generate sufficient and steady demand are likely to fail. C) Sharing economy firms facilitate access to resources. D) Sharing economy firms are a totally new phenomenon without precedent in the history of e-commerce.
answer
D) Sharing economy firms are a totally new phenomenon without precedent in the history of e-commerce.
question
Approximately ________ % of the United States labor force is involved in providing services. A) 50 B) 60 C) 70 D) 80
answer
D) 80
question
Which of the following is not an example of a transaction broker? A) a stockbroker B) a real estate agent C) an accountant D) an employment agency
answer
C) an accountant
question
All of the following services require extensive personalization except: A) financial services. B) legal services. C) medical services. D) accounting services.
answer
A) financial services.
question
Which of the following is a sharing economy company focused on the rental of lodging? A) Uber B) Lyft C) Airbnb D) Task Rabbit
answer
C) Airbnb
question
Which of the following statements about online banking is not true? A) Top mobile banking activities include checking balances and transferring money from one account to another. B) Online and mobile banking transactions provide significant costs savings for banks. C) All of the purely online banks (those that operate without a network of branches) have gone out of business. D) Over 50% of the adult U.S. population used online banking in 2014.
answer
C) All of the purely online banks (those that operate without a network of branches) have gone out of business.
question
In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site. A) account aggregation B) a financial portal C) integrated financial services D) EBPP systems
answer
A) account aggregation
question
The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? A) term life insurance B) automobile insurance C) health insurance D) property and casualty insurance
answer
A) term life insurance
question
All of the following statements about the online insurance industry are true except: A) the Internet has dramatically changed the insurance industry's value chain. B) Web sites of almost all the major firms provide the ability to obtain an online quote. C) Internet usage has led to a decline in term life insurance prices industry-wide. D) the industry has been very successful in attracting visitors searching for information.
answer
A) the Internet has dramatically changed the insurance industry's value chain.
question
All of the following statements about the online real estate services market are true except: A) Zillow and Trulia together account for over 60% of Web and mobile traffic to online real estate sites. B) real estate differs from other types of online financial services because it is impossible to complete a property transaction online. C) the primary service offered by real estate sites is a listing of houses available. D) the Internet and e-commerce have created significant disintermediation in the real estate marketplace.
answer
D) the Internet and e-commerce have created significant disintermediation in the real estate marketplace.
question
Craigslist is a player in which of the following online services markets? A) real estate services and career services B) insurance services and brokerage services C) travel services D) online accounting services
answer
A) real estate services and career services
question
Which of the following best explains why the service sector is a natural avenue for e-commerce? A) The service sector is less geographically reliant and more globally oriented. B) The service sector has historically been more technology-reliant. C) Much of the value in services is based on the collection, storage, and exchange of information. D) It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter.
answer
C) Much of the value in services is based on the collection, storage, and exchange of information.
question
What is the largest sector of the online travel services market in terms of revenue? A) hotel reservations B) car reservations C) cruise/tour reservations D) airline reservations
answer
D) airline reservations
question
Which of the following statements is not true? A) Price competition among online travel services is difficult as comparison shopping for better prices is easy. B) Online travel services is one of the few sectors in which extensive disintermediation has occurred. C) The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. D) The online travel services industry has gone through a period of consolidation.
answer
B) Online travel services is one of the few sectors in which extensive disintermediation has occurred.
question
Which of the following is not a major trend in the online recruitment services industry? A) disintermediation B) localization C) social networking D) consolidation
answer
A) disintermediation
question
Which of the following is not a current trend in online content? A) Sales of music in digital form produce more revenue than sales of physical units. B) Readership of newspapers in print form continues to exceed online readership. C) E-book sales growth slows. D) Console game sales stagnate in comparison to online gaming.
answer
B) Readership of newspapers in print form continues to exceed online readership.
question
Which of the following streaming movie and TV services is a joint venture between traditional entertainment producers? A) Netflix B) Hulu C) Zynga D) VUDU
answer
B) Hulu
question
Which of the following newspaper audience platforms has the higher percentage of readers? A) print/mobile B) Web only C) Web/mobile D) print
answer
D) print
question
Which of the following three forms of media account for over 95% of the hours spent consuming media? A) television, radio, and the Internet B) television, magazines, and the Internet C) the Internet, radio, and newspapers D) television, the Internet, and newspapers
answer
A) television, radio, and the Internet
question
In comparison to hours spent at work, the average American adult spends ________ consuming various media. A) a quarter as much time B) a third as much time C) an equivalent amount of time D) twice as much time
answer
D) twice as much time
question
Which of the following generates the largest share of media revenues? A) video games B) television C) newspapers D) radio
answer
B) television
question
Which of the following is the fastest growing segment of media revenues? A) television B) home video C) Internet media D) newspapers
answer
C) Internet media
question
Which of the following was the top online video site in 2014 in terms of unique viewers? A) Google Sites B) Facebook C) AOL D) Yahoo Sites
answer
A) Google Sites
question
All of the following are examples of technology convergence except: A) the iPad. B) Amazon Books Publishing. C) Apple TV. D) smartphones.
answer
B) Amazon Books Publishing.
question
All of the following are aspects of content convergence except: A) language. B) design. C) production. D) distribution
answer
A) language.
question
Which of the following occurs first in the process of content convergence? A) media integration B) media migration C) media transformation D) media maturity
answer
B) media migration
question
Which of the following accounts for the second largest amount of paid online content revenues in the United States in 2014? A) online video games B) Internet radio C) online music D) online TV and movies
answer
C) online music
question
Which of the following has the highest share of the e-book market? A) Amazon B) Apple C) Google D) Barnes & Noble
answer
A) Amazon
question
Which of the following happened during the period of time during which newspapers used a print-centric business model? A) Google launched its search engine. B) Apple introduced the iPhone. C) Facebook opened to the public. D) The adoption of smartphone and tablets has grown rapidly.
answer
A) Google launched its search engine.
question
Which of the following was the most troubled segment of the publishing industry in 2014? A) books B) magazines C) newspapers D) periodicals
answer
C) newspapers
question
Which of the following statements about the newspaper industry is not true? A) Newspaper management was sluggish to respond to the opportunities on the Internet for news. B) Online readership of newspapers is declining. C) The emergence of search engines such as Google has had a major impact on the newspaper industry. D) Newspaper industry revenues have declined by almost 50% from 2000 to 2013.
answer
B) Online readership of newspapers is declining.
question
Which of the following online newspaper sites or groups attracts the highest number of daily unique visitors? A) USA Today B) Washington Post C) Wall Street Journal D) The New York Times
answer
D) The New York Times
question
Which of the following statements about YouTube is not true? A) There are now over 1 million YouTube channels worldwide. B) In 2013, YouTube announced paid-subscription channels. C) YouTube has not yet shown a profit. D) The three most popular YouTube videos in terms of total views are music videos.
answer
C) YouTube has not yet shown a profit.
question
Which of the following is not one of the factors required to charge for online content? A) multiple delivery methods B) focused market C) specialized content D) high perceived net value
answer
A) multiple delivery methods
question
Which of the following is not a major contributing factor to net value? A) providing instantaneous, online access to information B) providing large, searchable historical archives C) enabling consumers to move online information to other documents easily D) offering a variety of subscription models
answer
D) offering a variety of subscription models
question
Approximately ________ of the Internet population in the United States reads magazines online. A) one-quarter B) one-third C) one-half D) three-quarters
answer
B) one-third
question
Digital magazine ad revenues were expected to ________ in 2014. A) remain stable B) more than double C) grow over 20% D) continue to decrease
answer
C) grow over 20%
question
All of the following typically favor the elimination of DRM except: A) hackers. B) technology companies. C) content owners. D) telecommunications pipeline companies
answer
C) content owners.
question
DRM refers to a combination of ________ for protecting digital content. A) hardware and software methods B) technical and legal means C) user and publisher agreements D) local and remote policies
answer
B) technical and legal means
question
Which of the following is not an example of a start-up digital news site? A) Huffington Post B) Buzzfeed C) Vice D) USA Today
answer
D) USA Today
question
Which of the following routes to a newspaper Web site generates the most digital ad revenue for the newspaper? A) via a search engine B) via a social media site such as Facebook C) directly to a newspaper's home page D) via an online video
answer
C) directly to a newspaper's home page
question
A metered subscription model is most similar to which of the following revenue models? A) transaction fee B) freemium C) advertising D) affiliate
answer
B) freemium
question
Which of the following statements about the online newspaper audience is not true? A) Online newspaper readership is growing at more than 10% a year. B) The majority of newspaper readers read the news using a combination of the Web, print and mobile. C) About 75% of Internet users read newspaper content online. D) Online newspapers reach over 75% of individuals in households earning more than $100,000 a year.
answer
B) The majority of newspaper readers read the news using a combination of the Web, print and mobile.
question
Who was the first major fiction writer to create an e-book-only volume of a new work? A) Hugh Howey B) Stephen King C) Dan Brown D) Amanda Hocking
answer
B) Stephen King
question
) In 2014, Amazon's e-book and media store contained around how many book titles? A) about 10,000 B) about 100,000 C) about 1 million D) about 10 million
answer
C) about 1 million
question
Around what percentage of Amazon's top 100 selling books are now self-published? A) 10% B) 25% C) 33% D) 50%
answer
B) 25%
question
In 2014, e-book sales constituted about ________% of all consumer book sales. A) 10 B) 25 C) 32 D) 50
answer
C) 32
question
Which of the following was sued by the Justice Department for violating antitrust laws in connection with e-books? A) Amazon B) Google C) Apple D) Barnes & Noble
answer
C) Apple
question
Which of the following is true about book publishing revenues over the past five years? A) They have decreased by 25%. B) They have increased by 25%. C) They have remained stable. D) They have decreased by 10%.
answer
C) They have remained stable.
question
In 2014, Amazon engaged in a trade dispute with which of the following over the pricing of e-books? A) Simon & Schuster B) Penguin Random House C) Hachette D) Harper Collins
answer
C) Hachette
question
Which of the following statements about the wholesale and agency models for selling books is not true? A) In the wholesale model, the retailer decides at what price to sell a book to the consumer. B) Amazon surprised traditional publishers by selling e-books for below their wholesale cost. C) Amazon supports the agency model. D) A result of the agency model was that Amazon's prices on e-books rose.
answer
C) Amazon supports the agency model.
question
Zinio is an example of which of the following? A) interactive book developer B) magazine aggregator C) e-reader platform D) vanity press
answer
B) magazine aggregator
question
Which of the following is the largest online movie download distributor? A) Netflix B) Hulu C) iTunes D) Google Play
answer
C) iTunes
question
Which of the following statements about the movie industry is not true? A) Over 100 million Americans were expected to watch movies online in 2014. B) Online movie distribution is not dominated by a single distributor. C) Sales of digital movies that can be downloaded increased by almost 50% in 2013. D) Internet and online distribution now make up the largest share of movie revenues.
answer
D) Internet and online distribution now make up the largest share of movie revenues.
question
Which of the following is not a leading factor in changing the television industry? A) increasing broadband penetration B) development of the mobile platform C) a willing industry with a library of high-quality content D) inability to attract customers to traditional products
answer
D) inability to attract customers to traditional products
question
Which of the following statements about the television and premium video industry is not true? A) Apple's iTunes store is the leading distributor of streaming video. B) The television industry is the major source of premium video on the Internet. C) Americans spend more time watching television on a computer or mobile device than they do on a traditional television set. D) Over-the-top entertainment services are a threat to cable television distributors.
answer
A) Apple's iTunes store is the leading distributor of streaming video.
question
The New York Times introduced which of the following revenue models in 2011? A) paywall B) metered subscription C) advertising D) walled garden
answer
B) metered subscription
question
Which of the following statements about the music industry is not true? A) Music industry revenues have decreased by 50% since 2000. B) Digital revenues accounted for less than half of all U.S. music revenues in 2013. C) In 2013, sales of digital downloads of music declined. D) Streaming music is the fastest growing segment.
answer
B) Digital revenues accounted for less than half of all U.S. music revenues in 2013.
question
Which of the following is the largest producer of revenues in the entertainment industry? A) radio B) television C) films D) video games
answer
B) television
question
Which of the following start-up digital news sites is owned by AOL? A) Vox B) Vice C) Reddit D) Huffington Post
answer
D) Huffington Post
question
In 2014, which of the following forms of entertainment produced the least amount of revenue? A) radio B) recorded music C) video games D) motion pictures
answer
B) recorded music
question
In 2014, which of the following comprised the largest segment of the online gaming audience? A) social gamers B) mobile gamers C) casual gamers D) console gamers
answer
B) mobile gamers
question
Which of the following is not a source of illegal file-sharing? A) Movie2K B) Megaupload C) MovieWatch D) UltraViolet
answer
D) UltraViolet
question
Which of the following statements about gaming is not true? A) The sale of video game hardware and boxed software no longer generates a majority of video game industry's revenue. B) Words with Friends is an example of a social game. C) In 2013, around 50% of smartphone owners played games on their phones. D) About 50% of all Internet users are online gamers.
answer
A) The sale of video game hardware and boxed software no longer generates a majority of video game industry's revenue.
question
Which of the following is the fastest growing online gaming audience? A) casual gamers B) mobile gamers C) social gamers D) console gamers
answer
B) mobile gamers
question
One of the first online virtual communities was: A) The Well. B) Myspace. C) AOL. D) Salon.com.
answer
A) The Well.
question
Which of the following was a primary feature of early online communities? A) chat B) network discovery C) widgets D) message boards
answer
D) message boards
question
Which of the following is a community of members who self-identify with a demographic or geographic category? A) practice network B) sponsored community C) affinity community D) interest-based social network
answer
C) affinity community
question
iVillage is an example of a(n): A) interest-based social network. B) affinity community. C) sponsored community. D) practice network.
answer
B) affinity community.
question
A Web site designed to give parents of home-schooled children a common discussion area would be classified as a(n): A) interest-based social network. B) affinity community. C) practice network. D) sponsored community.
answer
A) interest-based social network.
question
Facebook is an example of a(n): A) interest-based social network. B) affinity community/social network. C) general community/social network. D) practice network.
answer
C) general community/social network.
question
Which social network functionality allows users to easily post messages to the entire community? A) message board B) chat C) instant messaging D) e-mail
answer
A) message board
question
Around what percentage of Internet users in the United States use social networks on a regular basis? A) 25 % B) 33% C) 50% D) 67%
answer
D) 67%
question
Which of the following is the second leading social network worldwide in terms of number of members? A) Twitter B) LinkedIn C) Google+ D) Pinterest
answer
C) Google+
question
Which of the following is a leading social network in Brazil? A) VK B) Tuenti C) Orkut D) Qzone
answer
C) Orkut
question
The top four social network sites in the United States in terms of monthly unique visitors are: A) Facebook, Twitter, Pinterest, and LinkedIn. B) Facebook, Google+, Twitter and LinkedIn. C) Facebook, Google+, Pinterest and Twitter. D) Facebook, Twitter, Tumblr, and Pinterest
answer
B) Facebook, Google+, Twitter and LinkedIn.
question
Facebook purchased which of the following for $19 billion? A) Slingshot B) Snapchat C) WhatsApp D) Poke
answer
C) WhatsApp
question
Which of the following statements is not true? A) In 2014, the top three search engines generated almost four times as much U.S. search and display advertising revenue than that generated by social network sites. B) Among social networks, Twitter generates the highest amount of advertising revenue. C) The most popular social network tool for large corporate businesses is LinkedIn. D) The number of Fortune 500 business firms using Pinterest rose to over 35% in 2014.
answer
B) Among social networks, Twitter generates the highest amount of advertising revenue.
question
All of the following statements are true except: A) in a B2C auction, consumers sell goods to other consumers. B) auctions constituted a significant part of B2B e-commerce in 2014. C) over a third of procurement officers use auctions to procure goods. D) Sam's Club is an example of an online B2C auction
answer
A) in a B2C auction, consumers sell goods to other consumers.
question
In the United States, Facebook visitors spend about ________ hours a month on Facebook. A) 1.5 hours B) 3 hours C) 7 hours D) 15 hours
answer
C) 7 hours
question
All of the following are benefits of auctions except: A) more efficient price discovery. B) lower transaction costs. C) decreased price transparency. D) increased market efficiency.
answer
C) decreased price transparency.
question
Which of the following is the market leader in C2C auctions? A) Amazon B) eBay C) Yahoo D) Craigslist
answer
B) eBay
question
Which of the following is not a risk or cost of Internet auctions? A) delayed consumption costs B) equipment costs C) price transparency D) trust risks
answer
C) price transparency
question
The fact that participating in an Internet auction means that you will need to purchase a computer, learn to use it, and pay for Internet access, is an example of ________ costs. A) equipment B) fulfillment C) delayed consumption D) monitoring
answer
A) equipment
question
All of the following are solutions to the problem of high monitoring costs except: A) seller rating systems. B) watch lists. C) proxy bidding. D) fixed pricing.
answer
D) fixed pricing.
question
Which of the following types of auctions "shields the brand" of the seller? A) English auction B) Name Your Own Price auction C) Dutch auction D) penny auction
answer
B) Name Your Own Price auction
question
Which of the following allows the consumer to enter a maximum price and the auction software automatically bids up the goods to that maximum price in small increments? A) watch lists B) proxy bidding C) sealed bidding D) price matching
answer
B) proxy bidding
question
When did the first online communities form? A) the 1970s B) the 1980s C) the 1990s D) the 2000s
answer
B) the 1980s
question
BlackPlanet is an example of a(n) ________ social network. A) practice-based B) interest-based C) affinity-based D) general
answer
C) affinity-based
question
Around how many Americans used social networks in 2014? A) 125 million B) 150 million C) 175 million D) 200 million
answer
C) 175 million
question
Which of the following has the largest social network audience? A) North America B) Latin America C) Europe D) Asia-Pacific
answer
D) Asia-Pacific
question
When sellers agree informally or formally to set floor prices below which they will not sell on auction items, this is known as: A) discriminatory pricing. B) price matching. C) bid rigging. D) the uniform pricing rule.
answer
B) price matching.
question
What percentage of Facebook's users are 35 and over? A) almost one-quarter B) almost one-third C) almost one-half D) almost two-thirds
answer
C) almost one-half
question
Which of the following types of auctions is perfect for sellers that have many identical items to sell? A) English auctions B) Name Your Own Price auctions C) Dutch Internet auctions D) group buying auctions
answer
C) Dutch Internet auctions
question
Which of the following early leaders in social networking has been reinvented as a music-oriented social network? A) Vevo B) Myspace C) Polyvore D) Tumblr
answer
B) Myspace
question
Which of the following is a social network designed to appeal to disgruntled Facebook users that has promised never to sell its users' information to third parties? A) Myspace B) Ello C) Tagged D) Polyvore
answer
B) Ello
question
AOL is focusing its strategy on all of the following except: A) display advertising. B) online video. C) being an ISP. D) being a niche content provider.
answer
C) being an ISP.
question
All of the following types of auctions involve single units except: A) English auction. B) Dutch Internet. C) Name Your Own Price auction. D) penny auction.
answer
B) Dutch Internet.
question
Which of the following companies was an early investor in Facebook? A) Google B) Apple C) Microsoft D) LinkedIn
answer
C) Microsoft
question
A(n) ________, in which the highest bidder wins, is the most common form of auction. A) Dutch Internet auction B) Japanese auction C) English auction D) reverse auction
answer
C) English auction
question
Priceline is an example of a(n): A) English auction. B) Dutch auction. C) penny auction. D) Name Your Own Price auction.
answer
D) Name Your Own Price auction.
question
Which of the following statements about Instagram is not true? A) Instagram is owned by Twitter. B) Instagram is a photo-sharing app. C) Facebook developed its Camera app to compete with Instagram D) Instagram had over 200 million active users in 2014.
answer
A) Instagram is owned by Twitter.
question
Which of the following is not one of the top factors a business should consider when planning an Internet auction? A) type of product B) type of auction C) location of auction D) bid increments
answer
C) location of auction
question
The profit a seller makes at auction is a function of all of the following except: A) arrival rate. B) auction length. C) the number of units for auction. D) bid increments.
answer
D) bid increments.
question
________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids. A) Group buying B) Winner's regret C) Herd behavior D) Bid rigging
answer
C) Herd behavior
question
Which of the following involves a concern that one will never know how much the ultimate winner might have paid, or the true value to the final winner? A) herd behavior B) winner's regret C) seller's lament D) loser's lament
answer
C) seller's lament
question
Yahoo owns all of the following except: A) Tumblr. B) Flickr. C) Aviate. D) Instagram.
answer
D) Instagram.
question
Which of the following involves e-mailing another seller's bidders and offering the same product for less? A) transaction interception B) bid siphoning C) shill bidding D) persistent bidding
answer
B) bid siphoning
question
Threatening negative feedback in return for a benefit is an example of: A) feedback extortion. B) offensive shill feedback. C) defensive shill feedback. D) sending spam.
answer
A) feedback extortion.
question
Which of the following is not one of the three defining characteristics of a portal? A) commerce B) content C) auctions D) navigation of the Web
answer
C) auctions
question
Which of the following statements illustrates the network effects that portals are subject to? A) Specialized vertical market portals attract only 2-10% of the audience, while a few large megaportals garner most of the market. B) The value of the portal to advertisers and consumers increases geometrically as reach increases. C) The greater the amount of content provided by a portal, the greater its value to the community. D) The greater number of portals available, the greater the potential audience for each.
answer
B) The value of the portal to advertisers and consumers increases geometrically as reach increases.
question
The world's leading portal/search engine site, in terms of unique visitors, is: A) Yahoo. B) MSN/Bing. C) AOL. D) Google.
answer
D) Google.
question
MSN is an example of a: A) general purpose portal. B) vertical market portal based on affinity group. C) vertical market portal based on focused content. D) focused content search engine.
answer
A) general purpose portal.
question
Facebook was the leader in U.S. ad spending revenues on social networks in 2014. What company earned the second most amount of ad spending revenue? A) MySpace B) LinkedIn C) Pinterest D) Twitter
answer
D) Twitter
question
Which of the following is not one of the typical portal revenue sources? A) commissions on sales B) subscription fees C) tenancy deals D) referral fees
answer
D) referral fees
question
AmazonSupply is an example of an: A) e-distributor. B) e-procurement Net marketplace. C) exchange. D) industry consortium.
answer
A) e-distributor.
question
Analysts predict that B2B e-commerce in the United States will grow by 2018 to approximately: A) $7.8 billion. B) $78 billion. C) $780 billion. D) $7.8 trillion.
answer
D) $7.8 trillion.
question
Which of the following is not a current major trend in B2B e-commerce? A) Large firms move toward consolidating regional B2B systems into global systems. B) The Internet of Things begins to impact how supply chains operate. C) Firms place a growing emphasis on rapid-response and optimal supply chain rather than lowest-cost supply chains. D) B2B systems move towards cloud computing providers and away from individual corporate data centers.
answer
A) Large firms move toward consolidating regional B2B systems into global systems.
question
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
answer
D) failing to be efficient
question
In 2014, the total amount of B2B e-commerce in the United States was approximately: A) $5.7 billion. B) $57 billion. C) $570 billion. D) $5.7 trillion.
answer
D) $5.7 trillion.
question
Which of the following was the first step in the development of B2B commerce? A) Electronic Data Interchange (EDI) B) automated order entry systems C) digital storefronts D) private industrial networks
answer
B) automated order entry systems
question
Which of the following terms refers to the links that connect business firms with one another to coordinate production? A) supply chain B) seller-side solutions C) multi-tier exchange D) liquidity
answer
A) supply chain
question
Which of the following statements about automated order entry systems is not true? A) They are typically owned by the suppliers. B) They no longer play an important role in B2B commerce. C) They show goods only from a single seller. D) They reduce the costs of inventory replenishment.
answer
B) They no longer play an important role in B2B commerce.
question
EDI systems: A) generally serve horizontal markets. B) are seller-side solutions. C) are based on a communications standard for sharing business documents. D) no longer play an important role in B2B commerce.
answer
C) are based on a communications standard for sharing business documents.
question
Which of the following statements about B2B e-commerce Web sites is not true? A) They are a predecessor of automated order entry systems. B) They tend to serve horizontal markets. C) They are seller-side solutions. D) They are usually considered a type of Net marketplace.
answer
A) They are a predecessor of automated order entry systems.
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Which of the following is another name for a private industrial network? A) Net marketplace B) PTX C) EDI network D) hub-and-spoke system
answer
B) PTX
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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.
answer
B) EDI lacks universal standards.
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Which of the following is the fastest growing form of B2B e-commerce? A) e-distributors B) exchanges C) private industrial networks D) industry consortiums
answer
C) private industrial networks
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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.
answer
C) lower price transparency.
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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
answer
D) search for suppliers
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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.
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A) sending a remittance payment.
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Office supplies are an example of: A) direct goods. B) indirect goods. C) MRO goods. D) distributed goods.
answer
B) indirect goods.
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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
answer
C) contract purchasing of direct goods.
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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
answer
C) just-in-time production
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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.
answer
A) Much of the expense of the system is shifted from the B2B network provider to the firm.
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________ 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
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B) Tight coupling
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Cisco estimates that by 2016, mobile traffic will represent ________% of all business Internet traffic. A) less than 5 B) around 10 C) around 15 D) over 25
answer
D) over 25
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EDI began as a(n) ________ system. A) document automation B) document elimination C) continuous replenishment D) MRP
answer
A) document automation
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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.
answer
B) increased product cycle time.
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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
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D) SCM
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Which of the following statements about collaborative commerce systems is not true? A) They involve a move from a transaction focus to a relationship focus. B) They may include both customers and suppliers. C) They are open, competitive marketplaces. D) They typically include a central data repository.
answer
C) They are open, competitive marketplaces.
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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.
answer
D) They are always private.
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Which of the following primarily serve 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
answer
B) e-distributors and e-procurement Net marketplaces
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Which of the following primarily deal 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
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B) e-distributors and e-procurement Net marketplaces
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Which of the following primarily deal 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
answer
C) exchanges and industry consortia
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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.
answer
C) environmental concerns.
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Which of the following primarily involve 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
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D) e-procurement Net marketplaces and industry consortia
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An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium
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A) e-distributor
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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
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A) e-distributor
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Which of the following statements about e-distributors is not true? A) E-distributors make money by charging a mark-up on products they distribute. B) E-distributors usually operate "private" markets. C) E-distributors operate in horizontal markets. D) E-distributor prices are usually fixed.
answer
B) E-distributors usually operate "private" markets.
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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
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B) e-procurement Net marketplace
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Which of the following is an example of an e-procurement Net marketplace? A) TheSeam B) Ariba C) Grainger D) SupplyOn
answer
B) Ariba
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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
answer
D) desktop computers
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An example of an indirect good in the fast-food industry is: A) mustard. B) paper napkins. C) beef. D) sugar.
answer
B) paper napkins.
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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
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A) exchange
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An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
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C) exchange
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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
answer
A) price transparency
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Which of the following is not an important trend in B2B e-commerce in 2014-2015? A) concern about supply chain risk B) concern about supply chain sustainability C) concern about the accountability of supply chains D) concern about increasing use of the mobile platform
answer
D) concern about increasing use of the mobile platform
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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
answer
D) industry consortium
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Which of the following statements is not true? A) The Volkswagen Group manages almost all of its procurement needs via the Internet. B) VWGroupSupply.com is an industry consortium. C) VWGroupSupply can be accessed by suppliers via standard Web browser software. D) The Volkswagen Group developed VWGroupSupply using technology from a number of vendors.
answer
B) VWGroupSupply.com is an industry consortium.
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________ is another name for transorganizational business processes. A) Supply chain management B) Collaborative commerce C) B2B e-commerce D) Value chain management
answer
B) Collaborative commerce
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Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia.
answer
B) existing EDI networks.
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EDI document structures are defined by: A) a single international standards body. B) by individual suppliers and buyers. C) industry committees. D) each purchaser.
answer
C) industry committees.
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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.
answer
A) RFQs.
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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.
answer
B) It requires the large network owners to give up some of its independence.
