Q1. Nobel laureate Ronald Coase reasoned that when transaction costs were low, businesspeople would form organizations to replace market-negotiated transactions.
    a. true
    b. false

Q2. In ____ analysis, the analyst first looks into the business unit to identify its strength and weaknesses.
    a. SWOT
    b. strategic
    c. commerce
    d. transaction

Q3. ____ occurs when one business transmits computer-readable data in a standard format to another business.
    a. EFT
    b. VAN
    c. EDI
    d. LAN

Q4. Electronic payment can be easier to audit and monitor than payment made by check.
    a. true
    b. false

Q5. Manuel Castells has predicted that ____ will become the organizing structure for all social interactions among people.
    a. economic networks
    b. free enterprises
    c. hierarchical layers
    d. value systems

Q6. The practice of an existing firm replacing one or more of its supplier markets with its own hierarchical structure for creating the supplied product is called ____.
    a. marketing process
    b. market integration
    c. vertical integration
    d. horizontal integration

Q7. The combination of store design, layout, and product display knowledge is called ____.
    a. business process
    b. business transaction
    c. merchandising
    d. service

Q8. Which of the following types of commerce is/are well suited to electronic commerce?
    a. Sale/purchase of books and CDs and other commodities
    b. Sale/purchase of high-fashion clothing
    c. Roommate-matching services
    d. Jewelry

Q9. ____ specifies the format of a mail message and describes how mail is to be administered on the e-mail server and transmitted on the Internet.
    a. SMTP
    b. TCP/IP
    c. MIME
    d. POP

Q10. A T1 line carries ____ DS0 lines and operates at 1.544 Mbps.
    a. 18
    b. 20
    c. 24
    d. 36

Q11. POP allows users to search for and manipulate only those e-mail messages that they have downloaded to their computers.
    a. true
    b. false

Q12. The combination of telephone lines and the closed switches that connect them to each other is called a(n) ____.
    a. LAN
    b. WAN
    c. circuit
    d. pathway

Q13. An HTML document is similar to a word-processing document in that it specifies how a particular text element will appear.
    a. true
    b. false

Q14. Tim Berners-Lee has announced a project that will blend technologies and information to create a next-generation Web, which he calls the Semantic Web.
    a. true
    b. false

Q15. The most common way to connect to an ISP is through a modem connected to your local telephone service provider, also known as ____.
    a. PERT
    b. PITS
    c. DSL
    d. POTS

Q16. Bluetooth operates reliably over distances of up to 35 feet and can be a part of up to 10 networks of eight devices each.
    a. true
    b. false

Q17. When customers buy a product they are also buying that service element.
    a. true
    b. false

Q18. All electronic commerce initiatives have the goal of providing revenue.
    a. true
    b. false

Q19. Coca Cola and Pepsi have developed identical Web presences.
    a. true
    b. false

Q20. Channel distribution managers are companies that take over responsibility for a particular product line within a retail store.
    a. true
    b. false

Q21. Channel conflict is also referred to as ____.
    a. Web conflict
    b. account aggregation
    c. cannibalization
    d. addressable media

Q22. Gift retailers on the Web use the advertising-supported revenue model.
    a. true
    b. false

Q23. In the personal contact approach, firms prepare advertising and promotional materials about the firm and its products or services.
    a. true
    b. false

Q24. Two pioneers of usability testing are ____ and Jakob Nielsen.
    a. Charles Smith
    b. Ben Shneiderman
    c. Christopher Locke
    d. Aaron Montgomery

Q25. An intermediary that can act on behalf of a company to communicate with potential customers is a(n) ____.
    a. broker
    b. shopper
    c. independent sales organization
    d. affiliate

Q26. Good customer experiences can help create an intense feeling of loyalty toward the company and its products or services.
    a. true
    b. false

Q27. In the information world’s marketspace, digital products and services can be delivered through ____.
    a. US mail
    b. Federal Express
    c. UPS
    d. the Internet

Q28. In a virtual world, companies can convey a large part of their message by the way they construct buildings and design their floor space.
    a. true
    b. false

Q29. The pricing metric for measuring Web site advertising is ____.
    a. CPM
    b. ACT
    c. CME
    d. CEM

Q30. A banner ad is a small rectangular object on a Web page that displays a stationary or moving graphic without a hyperlink to the advertiser.
    a. true
    b. false

Q31. Domain name parking is also referred to as domain name renting.
    a. true
    b. false

Q32. Market ____ are usually defined in terms of demographic characteristics such as age, gender, marital status, income level, and geographic location.
    a. principles
    b. segments
    c. courses
    d. researches

Q33. Technologies such as virtual private networks are providing the security that makes extranets increasingly attractive.
    a. true
    b. false

Q34. With respect to EDIs, the two businesses that exchange information are called ____.
    a. traders
    b. hand-shakers
    c. trading partners
    d. collaborators

Q35. Businesses make a distinction between direct and indirect materials.
    a. true
    b. false

Q36. Many companies are willing to use the Internet to transmit FEDI transaction sets.
    a. true
    b. false

Q37. EDI was the first form of electronic commerce to be widely used in business.
    a. true
    b. false

Q38. Companies in industries that have long supply chains have, in the past, often found it difficult to maintain customer focus, which is often called a(n) ultimate consumer orientation.
    a. true
    b. false

Q39. One term used to describe procurement activities is ____.
    a. customer portal
    b. supply management
    c. replenishment purchasing
    d. independent exchange

Q40. IBM Global Services and Computer Associates are companies that provide VAN services.
    a. true
    b. false

Q41. Companies that implement e-procurement software usually require that suppliers bid on their business.
    a. true
    b. false

Q42. The types of products that are ideal for group purchasing sites are branded products with well-established reputations.
    a. true
    b. false

Q43. In 1999 alone, Yahoo! spent over ____ billion in cash and stock to expand the range of services available on its Web portal site.
    a. 10
    b. 20
    c. 30
    d. 50

Q44. In a first-price sealed-bid auction, the ____ bidder wins.
    a. highest
    b. second highest
    c. lowest
    d. second lowest

Q45. The English auction is also called a(n) ____.
    a. ascending-price auction
    b. descending-price auction
    c. step-price auction
    d. moving-price auction

Q46. The Dutch auction is also called an ascending-price auction.
    a. true
    b. false

Q47. A(n) ____ is the amount by which one bid must exceed the previous bid.
    a. minimum bid increment
    b. deposit bid
    c. security bid
    d. maximum bid increment

Q48. Analysts believe that a more appropriate term for the electronic commerce that occurs in general consumer auctions is consumer-to-consumer.
    a. true
    b. false

Q49. Second-price sealed-bid auctions are commonly called ____.
    a. Vicky auctions
    b. Vickrey auctions
    c. Vijay auctions
    d. Victory auctions

Q50. In ____ A.D., the Praetorian Guard auctioned off the entire Roman Empire after killing the Emperor Pertinax.
    a. 193
    b. 410
    c. 623
    d. 1014