1) _____occurs when one business transmit computer-readable data in a standard format to

another business.
A) EFT (B) VAN (C) EDI (D) LAN

2) Banks use_____, which are electronic transmissions of account exchange information over
private communication networks
A) WANs (B) EDIs (C) EFTs (D) LANs

3) One significant components of ____ can be the investment a seller makes in equipment or in
the hiring of skilled employees to supply the product or service to the buyer.
A) economic cost (B) transaction cost (C) SWOT analysis (D) retention cost

5) ______ is the degree to which the product offers utility to a potential customer
A) Differentiation (B) Relevance (C) Perceived value (D) brand

7) Most courts will hold that a(n) _____ exists when the terms of a contract have been reduced to
some tangible form
A) writing (B) file (C) agreement (D) term

8) A reasonably guideline for payment processing fees that would be charge to a new merchant
opening a business on the web is about ____ percent of gross sales
A)3% (B) 10% (C) 15% (D) 20%

9) Pay Pal earns a profit on the _____ which is money that is deposited in Pay Pal accounts and
not used immediately
A) scrip (B) commission (C) transaction cost (D) Float

_____________ are networks that connect people within a company to each other and to the
company network.
Intranets

Bitstreams

Extranets

Internets
_______________ is the encompassing term that involves the use of electronic platforms -
intranets, extranets and the Internet - to conduct a company's business.
E-procurement

E-marketing

E-commerce

E-business

Which of the following is not one of the benefits of e-commerce to sellers?

E-commerce offers greater flexibility in meeting customer needs.

E-commerce is a powerful tool for customer relationship building.

E-commerce can help to reduce costs.

E-commerce increases the net cost per contact.

The E-commerce domain that involves business activity initiated by the consumer and targeted
to businesses is known as:
Business to Business (B2B).

Consumer to Business (C2B).

Business to Consumer (B2C).

Consumer to Consumer (C2C).

A ______________ is a B2B trading network that links a particular seller with its own trading
partners.
virtual network

web community

private trading network

bitstream
The type of website that is designed to build customer goodwill and to supplement other sales
channels rather then sell the company's products directly is known as a ______________
website.
click-and-mortar

marketing

corporate

customer service

The type of website that engages consumers in interactions that will move them closer to a
direct purchase is known as a ______________ website.
marketing

interactive

customer service

corporate

When preparing a website, designers should ensure that the site enables user-to-user
communication. This design feature is known as __________________.
context

commerce

community

connection

When preparing a website, designers should ensure that the site makes effective use of the text,
pictures and video. This design feature is known as _________.
content
 context

connection

communication

A(n) ___________ is an online advertisement that pops up between changes on a website.

border

boarder

interstitial

plunge

______________ marketing is the Internet version of word-of-mouth marketing.

Viral

Virile

Virtual

Visceral

Websites upon which members can congregate online and exchange views on issues of common
interest are known as ______________.
web casts

virtual communities

e-marketing

web communities

True/False questions
Indicate whether each of the following statements is true or false.
____ 1. IBM defines electronic business as "the transformation of key business processes
through the use of internet technologies."
____ 2. Business-to-consumer electronic commerce occurs when a person sells an item
through a web auction site to another person.
____ 3. In some cases, business processes use traditional commerce activities very
effectively, and technology cannot improve upon them.
____ 4. A product that has a strong brand identity is easier to sell over the web than an
unbranded item.
____ 5. Electronic commerce provides buyers with an easy way to customize the level of
detail in the information they obtain about a prospective purchase.
____ 6. Electronic payments can be easier to audit and monitor than payments made by
cheque.
____ 7. Economists use a formal definition of a market that includes two conditions: first,
that the potential sellers of a good come into contact with potential buyers; and
second, that a medium of exchange is available.
____ 8. Nobel laureate Ronald Coase reasoned that when transaction costs were low,
businesspeople would form organizations to replace market-negotiated transactions.
____ 9. Sellers and buyers in commodity markets experience significant transaction costs.

____ 10. A small-denomination item is a product or service that is hard to distinguish from the
same product or services provided by other sellers.