You are advising an accounting firm that wants to establish its first Web site. Approximately how much of the Web site budget should you assign to purchasing software?

A) 10 percent

B) 25 percent

C) 50 percent

D) none, as no software will need to be purchased

Answer: A

Which of the following is the least costly way to build a Web site?

A) Outsource the Web site development to overseas vendors.

B) Use a hosted solution and pre-built templates.

C) Build your site yourself from scratch using existing software.

D) Use a site-building package.

Answer: B

You are planning the requirements for a site tracking and reporting system for your company Web site. Which of the following information requirements would not be essential for this function?

A) number of unique visitors

B) pages visited

C) products purchased

D) secure credit card clearing

Answer: D

You are building an e-commerce Web site that will sell e-books and are looking for a hosted solution. Which of the following functionalities is least important for your business goals?

A) site tracking system

B) inventory management

C) digital catalog

D) customer database

Answer: B

Which of the following statements about m-commerce is not true?

A) In 2012, m-commerce represented less than 10 percent of all e-commerce.

B) M-commerce is the fastest growing form of e-commerce.

C) M-commerce annual revenues are approximately $30 billion.

D) In 2012, the top-grossing category of m-commerce was e-book sales.

Answer: D

Goods that are involved in the actual production process are referred to as

A) raw materials.

B) direct goods.

C) purchasing goods.

D) indirect goods.

Answer: B

A third-party Net marketplace that connects many buyers and suppliers for spot purchasing is called a(n)

A) exchange.

B) vertical market.

C) private exchange.

D) e-hub.

Answer: A

A mapping of a person's significant online, personal relationships is called a social

A) Web.

B) graph.

C) community.

D) map.

Answer: B

E-hubs are more ________ than private industrial networks.

A) transaction-oriented

B) collaborative

C) independent

D) supply-chain oriented

Answer: A

An extranet that links a large firm to its suppliers and other key business partners is called a(n)

A) e-hub.

B) marketspace.

C) exchange.

D) private industrial network

Answer: D

The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called

A) e-procurement.

B) SCM.

C) procurement.

D) sourcing.

Answer: C

EDI is

A) the use of Internet technologies for electronic data transactions.

B) the exchange between two organizations of standard transactions through a network.

C) electronic data invoicing.

D) electronic delivery infrastructure.

Answer: B

Which of the following statements about B2B commerce is not true?

A) Eighty percent of online B2B e-commerce is still based on EDI.

B) B2B e-commerce represents approximately three-quarters of the overall B2B marketplace.

C) B2B e-commerce only includes commercial transactions between firms.

D) B2B e-commerce revenues in 2012 were over $4 trillion.

Answer: B

Which of the following was the leading online advertising format in 2012?

A) display ads

B) e-mail

C) classifieds

D) search engine

Answer: D

Exposing an individual to ads that are chosen and based on the recorded and analyzed online behavior of the individual is referred to as

A) clickstream advertising.

B) behavioral targeting.

C) online profiling.

D) long tail marketing.

Answer: B

Netflix's public announcement of a reward for a technology solution to its movie recommendation system is an example of

A) prediction markets.

B) behavioral targeting.

C) long-tail marketing.

D) crowdsourcing.

Answer: D

______ describes the concept that a large group of people is better at making correct decisions than a single person.

A) The wisdom of crowds

B) Outsourcing

C) Crowdsourcing

D) Social graphing

Answer: A

Which of the following best illustrates the transaction fee revenue model?

A) eBay receives a small fee from a seller if a seller is successful in selling an item.

B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.

C) Flickr provides basic services for free, but charges a premium for advanced services.

D) Apple accepts micropayments for single music track downloads.

Answer: A

Which of the following best illustrates the affiliate revenue model?

A) eBay receives a small fee from a seller if a seller is successful in selling an item.

B) Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.

C) Flickr provides basic services for free, but charges a premium for advanced services.

D) Apple accepts micropayments for single music track downloads.

Answer: B

In which of the following revenue models does a Web site charge a fee for access to some or all of its offerings on a continual, regular basis?

A) subscription

B) free/freemium

C) transaction fee

D) sales

Answer: A