Foundations of Net-Enhanced Organizations Test Bank by Ace Test Banks

Foundations of NetEnhanced Organizations By

Straub

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 1 Test Bank 1. Which of the following is NOT an environmental driver of e-commerce? a. Digitization of media b. Intelligent products and services (pg. 8) c. Inexpensive communications d. Widespread diffusion of computers 2. Which of the following is NOT an organizational driver of e-commerce? a. Increasing pressure on costs and margins b. Rapidly shrinking cycle times c. Intelligent products and services d. Demand for customized products and services e. Widespread diffusion of computers (pg. 8) 3. _______ is generally thought of as the information, art or evaluations that are the valueadded component of media exchanges. a. Data b. Information c. Satisficing d. Content (pg. 8) e. Convergence 4. The movement away from media content embedded in physical forms to ____ makes a huge difference in our future capability for technological innovation. a. Digits (pg. 8) b. Virtual files c. Holograms d. Data e. Information

5. ________ is a process of capturing content in bits rather than in physical form. a. Deregulation b. Globalization c. Digitization (pg. 7) d. Commoditization e. Convergence 6. The medium of choice is completely dependent on _______. a. Government regulation b. Equipment available (pg. 9) c. Open standards d. Network capabilities e. All of the above 7. Which of the following is NOT a barrier to worldwide affordable telecommunications? a. Costs of telecommunications services

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 1 Test Bank b. c. d. e.

Government run monopolies Costs of replacement infrastructure Deregulation of the telecommunications industry (pg. 10) Inefficiently run governments

8. _______ means that businesses operate freely and with minimal restraints across national borders. a. Deregulation b. Globalization (pg.12) c. Digitization d. Commoditization e. Convergence 9. Without a __________, no communications technical advance can succeed. a. Critical mass of users (pg. 12) b. Structured environment c. Efficiently run government d. Open standards e. Closed networks 10. ___________ is the standardization of products and services such that differences between them are not perceived as differentiating characteristics by customers. a. Deregulation b. Globalization c. Digitization d. Commoditization (pg. 12) e. Convergence 11. New models of e-commerce include a. Empowerment of workers b. Informating of key business activities c. Delayering d. Partnering e. All of the above (pg. 13) 12. __________ is the increased exchange of information among workers within and across work groups. a. Partnering b. Informating c. Tele-work d. Empowerment (pg. 13) e. Delayering 13. _________ is reshaping information for managerial decision-making from automated processes. a. Partnering

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 1 Test Bank b. c. d. e.

Informating (pg. 13) Tele-work Empowerment Delayering

14. _________ is removing organizational levels which increase span of control and lead naturally to outsourcing. a. Partnering b. Informating c. Tele-work d. Empowerment e. Delayering (pg. 13) 15. Strategic alliances are also known as ________. a. Partnering (pg. 14) b. Informating c. Tele-work d. Empowerment e. Delayering 16. Performing work in locations remote from a central office is known as a. Partnering b. Informating c. Tele-work (pg. 14) d. Empowerment e. Delayering 17. Decreasing cycle times requires a. Increasing costs b. Tight integration between tasks in the critical path (pg. 14) c. Decreasing supply and demand d. Increasing organizational layers e. Empowerment 18. ___________ will increase the capabilities of e-commerce and extend its penetration into our daily lives. a. Regulation b. Patterning c. Reorganization d. Intelligent products and services (pg. 15) e. Bail-outs 19. _____ were first conceived in the late 1940s as the simple exchange of information between a sender and a receiver computer. a. Servers b. Routers

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 1 Test Bank c. Work stations d. Hard drives e. Networks (pg. 17) 20. A network that can continue to operate even when sections of the network fail are known as __________ networks. a. Wired b. Analog c. Robust (pg. 18) d. Digital e. Organizational 21. Systems that give the firm overall competitive advantage and are based on an open network hand-shaking protocol are a. Era I systems b. Era II systems c. Era III systems d. Era IV systems (pg. 19) e. None of the above 22. Systems that are primarily mainframe TPS and MIS systems are a. Era I systems (pg. 19) b. Era II systems c. Era III systems d. Era IV systems e. None of the above 23. Systems that include customer ordering systems and proprietary network connections are _____. a. Era I systems b. Era II systems c. Era III systems (pg. 19) d. Era IV systems e. None of the above 24. Systems that include DSS and ES systems using primarily minicomputers are _______. a. Era I systems b. Era II systems (pg. 19) c. Era III systems d. Era IV systems e. None of the above 25. The _________ of TCP/IP is what makes it so attractive as a network exchange language. a. Boundaries b. Documentation c. Universality (pg. 19)

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 1 Test Bank d. Logic e. Semantics 26. Which of the following is NOT a distinguishing characteristic of an e-commerce firm? a. Adopting a global focus, both in terms of sourcing/supplying and selling b. Closely tied IT to the organizations strategic positioning c. Examine the concept of full information visibility and selectively deploy it d. Create strong links to customers through its proprietary data e. Brick and mortar counterpart (pg. 25) 27. A example of a __________ is the direct-to-consumer model that puts electronic resources in place for customers. a. Business model (pg. 27) b. Network c. Distributed server d. Design specifications e. Implementation phase 28. One of the undeniable consequences of resistance to change is a. An increase in consumer demand b. Transitions take longer than expected (pg. 28) c. A decrease in workforce d. Modular programming e. Support of top management 29. Resistors to change are typically a. Under-educated b. In a middle or low socioeconomic class c. Introverts d. Early to retire e. Late in adopting innovations (pg. 28) 30. Which of the following is NOT a key trend in the development of e-commerce? a. Resistance to change b. Moore’s Law c. Growth in e-commerce sectors d. Stock market fall-out of dot.coms e. Rising financial instrument interest rates (pg. 32) True and False 1. Increasing pressure on costs and margins, including globalization and commoditization is an environmental driver of e-commerce. Pg. 8 – F 2. Changing organizational models, including empowerment of workers, informating of key business activities, outsourcing and downsizing of many firms, partnering, cross-

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 1 Test Bank functional business processes, and virtual teams is an organizational driver of ecommerce. Pg. 8 – T 3. Rapidly shrinking cycle times is an organizational driver of e-commerce. Pg 8 – T 4. Intelligent products and services are organizational drivers of e-commerce. Pg. 8 – T 5. Demand for customized products and services is an environmental driver of e-commerce. Pg. 8 – F 6. In traditional media, the content and the medium are independent of each other. Pg. 8 – F 7. Low rates for most telecommunications services are available worldwide. Pg. 10 – F 8. Diffusion of computing in many developing countries has been slower because of the cost of computers and the tariffs placed on imports by governments. Pg. 11 – T 9. Costs and margins are under pressure because of globalization and nationalization. Pg. 12 –F 10. There is nearly universal need in business to reduce cycle times for production and fulfillment processes. Pg. 14 – T 11. For all intents and purposes, the development of smart networks grew out of personal computer advances in the early 1980s. pg. 18 – T 12. E-commerce breaks out of the strait-jacket of the first three computing eras by leaving firms boundaries behind. Pg. 19 – T 13. EDI is the open systems protocol universally used by the Internet and the World Wide Web. Pg. 22 – F 14. E-commerce involves exchanges of information that are governed by the rules of the National Information Infrastructure. Pg. 22 – F 15. E-commerce firms are predisposed to focusing on informational core competencies and to outsourcing noncore physical assets and capabilities. Pg. 24 – T 16. Top management needs to think in terms of giving customers direct access to information that will both improve quality of the service they are getting and represent a new plateau of customer relationship. Pg. 27 – T 17. Given any ten year period, the capabilities of computers increase tenfold while the pricing of those capabilities decreases a hundredfold. Pg. 29 – F 18. Resistors to change are early to adopt new innovations. Pg. 28 – F 19. If top managers are reluctant to adopt new procedures and the accompanying information systems that radically reform and reshape their businesses, the e-commerce revolution will be retarded. Pg. 28 – T 20. Organizations that are able to accept a truly R&D mentality that expects a certain percentage of failures will be extremely successful in the Internet Age. Pg. 29 - T Short Answer 1. Digitization of media, inexpensive telecommunications, and widespread diffusion of computers are ___________ drivers of e-commerce. a. Environmental pg. 8 2. The sources of drivers of e-commerce are ________ and ___________. a. Environmental and Organizational (pg. 8) 3. ______ is the means by which people and computers communicate. a. Media (pg. 8)

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 1 Test Bank

4. _________ is thought of as the information, art, or evaluations that are the value-added component of media exchanges. a. Content (pg. 7) 5. __________ is the process of capturing content in bits rather than in a physical form in a particular medium. a. Digitization (pg. 7) 6. Networks can readily move content around and between organizations if it is in ________________ a. Digital form (pg. 10) 7. In the U.S., the critical event spurring the decrease in cost of using telecommunications networks was the _____________ of the telecommunications industry. a. Deregulation (pg. 10) 8. The barriers to affordable telecommunications are __________ a. Primarily the huge costs to replace outmoded telecommunications infrastructures and the inefficient, government-run monopolies that still operate in many countries throughout the world.(pg. 10) 9. Without a critical mass of ________, no communications technical advance can succeed. a. Users (pg. 12) 10. Costs and margins are under pressure because of ___________and ______________. a. Globalization and Commoditization (pg. 12) 11. ________ means that businesses operate freely and with minimal restraints across national borders. a. Globalization pg. 12 12. _________ is the standardization of products and services such that differences between them are not perceived as differentiating characteristics by customers. a. Commoditization (pg. 12) 13. _____________ are the only impediment to being able to access web-sites globally. a. Government regulations (pg. 13) 14. _____________ of the future will increase the capabilities of e-commerce and extend its penetration into our daily lives. a. Intelligent products and services (pg. 15) 15. ___________ articulated the idea of minimal bit exchanged in order to perfectly complete a transaction. a. Information theory (pg. 17)

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 1 Test Bank

16. E-commerce is unique in the ________ of its network. a. Intelligence (pg. 17) 17. In ______________, both processing and data storage could be dispersed across networks. a. Distributed computing intelligence (pg. 18) 18. ______________ systems refocus the organizational targets from intra-industry systems to inter-industry and consumer-oriented systems. a. Era IV systems (pg. 19) 19. E-commerce firms are predisposed to focusing on informational core competencies and to _________ noncore physical assets and capabilities. a. Outsourcing (pg. 24) 20. ________ is the transmission protocol that is dominant . a. TCP/IP (pg. 31)

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 2 Test Bank 1. _________ occur when the very basis of doing business changes. a. Driven processes b. Increasing returns c. Movement of goods d. Paradigm shifts (pg. 42) e. Capitalization 2. The e-commerce paradigm shift has resulted in which of the following? a. Extensive use of the Internet b. Lower cost of doing business (pg. 42) c. Higher return ratios d. Lower ratio of hits/misses e. All of the above 3. The modern virtual organization is a quilt of _________ that includes the ability to coordinate multiple partners in creating products and services. a. Nodes b. Service providers c. Core competencies (pg. 43) d. Communication e. None of the above 4. The ___________ is often identified with firms that focus on traditional sources of revenue, such as manufacturing and value-added services associated with physical goods. a. Old Economy (pg. 43) b. Information age c. Networked Economy d. Internet revolution e. Information highway 5. The _________ firms focus on information value-added served, information and communications technologies or other high technology offerings. a. Old Economy b. Information age c. Networked Economy (pg. 43) d. Internet revolution e. Information highway 6. The most obvious economic difference between Old Economy traditional bricks and mortar business processes versus Networked Economy clicks or clicks and bricks business processes is the ___________. a. Return on investment b. Increase in sales c. Decrease in cost of goods sold d. Increased profit margins

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 2 Test Bank e. Lower cost of doing business (pg. 44) 7. One way to lower production costs is to a. Substitute information for physical facilities (pg. 44) b. Increase production c. Increase sales d. Reduce workforce e. All of the above 8. ________ are orders of magnitude different from e-commerce transactions. a. Supplier transactions b. Purchasing transactions c. Physical transactions (pg. 47) d. Virtual transactions e. Financial transactions 9. _______________ are the costs of moving from an internal provision of a good or service to external provision in the marketplace. a. Production costs b. Transaction costs (pg. 48) c. Physical costs d. Fixed costs e. Structured costs 10. Which of the following is NOT a transaction cost? a. Searching for a vendor b. Searching for a provider c. Negotiating a contract d. Monitoring an external provider e. Inventory costs (pg. 49) 11. Which of the following will NOT reduce search transaction costs? a. Web search for products and services b. Interactive demos and product reviews c. Automatic registration of products/services (pg. 49) d. Details of company, links to customers e. E-mail and FAQs for further information 12. Which of the following will NOT reduce purchase transaction costs? a. Item selection and ordering b. Part purchase and upgrades (pg. 49) c. Delivery selection and ETA d. Secure payment transactions e. EDI over net for purchase orders, invoices, contracts, etc. 13. Which of the following will NOT reduce receiving transaction costs?

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 2 Test Bank a. b. c. d. e.

Transmission over network of information content of product Support information and follow-up Automatic registration of product/service Item selection (pg. 49) Follow-up information

14. Which of the following will NOT reduce maintenance transaction costs? a. Automatic registration (pg. 49) b. Upgrade/maintenance notification c. On-line support for problem queries d. Part purchase and upgrades e. On-line media for training, use, repair 15. Networked Economy businesses manipulate __________ rather than physical objects. a. Perceptions b. Symbols (pg. 49) c. Ideas d. Data e. Costs 16. The _________ has allowed a direct movement of goods from producer to consumer. a. Internet regulatory commission b. Client server model c. Automatic registration d. Substitution of information for physical processes (pg. 49) e. All of the above 17. The decision of firms to build or manufacture themselves versus purchasing these goods from others is the __________ decision. a. Go/Don’t Go b. Build vs. Buy (pg. 53) c. feasibility d. Accept vs. Reject e. Distributing vs. centralized 18. A cost to find firms able and willing to sell desired goods and services is a ________ transaction cost. a. Bonding b. Negotiating c. Search (pg. 54) d. Monitoring e. Decision making 19. A cost to determine relevant bidders is a ___________ transaction cost.

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 2 Test Bank a. b. c. d. e.

Bonding Negotiating Search Monitoring Decision making (pg. 54)

20. A cost to determine mutually agreed upon deliverables and pricing is a _________transaction cost. a. Bonding b. Negotiating (pg. 54) c. Search d. Monitoring e. Decision making 21. A cost to insure against failure to deliver or sub performance levels is a ____________ transaction cost. a. Bonding (pg. 54) b. Negotiating c. Search d. Monitoring e. Decision making 22. A cost to investigate and formulate contracts is a _________ transaction cost. a. Bonding b. Negotiating c. Legal (pg. 54) d. Monitoring e. Decision making 23. A cost to monitor ongoing outcome performance is a ____________ transaction cost. a. Bonding b. Negotiating c. Search d. Monitoring (pg. 54) e. Decision making 24. Which of the following is NOT a physical business exchange cost? a. Transaction costs b. Invoicing c. Payment d. Movement of goods/services e. Inventory costs (pg. 54) 25. ____________ are those technical features of a network that allow for free and open exchange between all parties in a market.

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 2 Test Bank a. b. c. d. e.

Infrastructure Open systems and architectures (pg. 57) Economic impacts Proprietary standards Licenses

26. ____________ is a term that represents the amount of sharing of internal information, much of which is embedded, with suppliers, strategic partners, and customers. a. Information visibility (pg. 58) b. Outlook Express c. Network compatibility d. Information infrastructure e. Smart communications 27. Which of the following is NOT a novel source of income in the Networked Economy? a. Increase revenues via products/services from larger global market for more effective product marketing on Web b. Increased margins from lower internal costs c. Increased revenues from selling cyberspace, from becoming a portal d. Value-added content sold from selling searches, access to data, electronic documents. e. Taxation (pg. 59) 28. __________ mean that a firm can produce high volumes of goods while minimizing production costs. a. Customization b. Commoditization c. Economies of scale (pg. 59) d. Proprietary standards e. Connectivity 29. ___________ are the application infrastructure of a firm, the computer systems that record and manipulate order, operational, logistical and marketing functions. a. Networked systems b. Decentralized systems c. Legacy systems (pg. 62) d. Distributed systems e. Strategic systems 30. A major capital cost in e-commerce is the _____________ of the web site. a. Length b. Breadth c. Functionality (pg. 62) d. Purpose

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 2 Test Bank e. Strategic plan

True and False 1. The e-commerce paradigm shift has resulted in two major economic changes. Pg. 42 - T 2. The cost of doing business has been lowered by orders of magnitude. Pg.42 - T 3. Computers are not capable of perfect accuracy. Pg.42 – F 4. Networked Economy firms focus on manufacturing and value added services pg. 43 – F 5. Old Economy firms focus on high technology offerings. Pg 43– F 6. The main difference between Old Economy and Networked Economy firms is the lower cost of doing business. Pg. 44 – T 7. Production costs are lowered when information is substituted for physical processes. Pg. 45– T 8. BADA gives inspectors info to bid on lots and negotiate terms online. Pg. 45 – T 9. BADA stands for buyer-at-a-discount auction. Pg. 45 – F 10. As transactions become virtual, the economies of the Internet fall. Pg. 46 – F 11. Transactions over the Internet are measured in dollar and pounds. Pg. 46 – F 12. Exchange costs are part of the fulfillment process. Pg. 48 – T 13. Costs to investigate and formulate contracts are bonding costs. Pg. 54 – F 14. Costs to monitor ongoing outcome performance are monitoring costs. Pg 54 - T 15. The transaction cost theory argues that the firms will choose to move to the market when it is less expensive to achieve its goals by purchasing from the marketplace than it is by provisioning internally.Pg. 54 – T 16. Networked Economy firms will go to the Internet to save physical costs. Pg. 54 – T 17. Physical movement of parts from suppliers to firms and the physical invoicing and payment processes also raise the overall business exchange costs. Pg. 55 T 18. The major difference in economics between the an e-commerce firm and a traditional firm is the higher business exchange costs of the traditional firm. Pg. 55 T 19. Economies of scale mean that a firm cans high volumes of goods with minimized production costs. Pg. 59 – T 20. Networked Economy producers of intellectual goods experience different economies of scale than Old economy firms. Pg. 60 - F

Short Answer 1. __________ occur when the very basis of doing business changes. Pg. 42 Paradigm shifts 2. Heavily information intensive, ____ firms focus on information value-added services. Pg. 43. Networked Economy

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 2 Test Bank 3. The replacement of the ______ with symbolic manipulations and file transers by a computer represents a many million-fold increase in capabilities. Pg. 43 physical processes. 4. The ____________ is often identified with firms that focus on traditional sources of revenue. Pg.43 – Old Economy 5. The __________ firms focuses on information value-added services. Pg. – 43 Networked Economy 6. Costs to find firms able and willing to sell desired goods and services are _______ costs. Pg. 54 – Search costs 7. Costs to determine mutually agreed upon deliverables and pricing is known as ________ costs. Pg. 54 – Negotiating costs 8. Costs to investigate and formulate contracts are _____ costs. Pg. 54- Legal 9. ______ are physical costs to find bidders, negotiation, guarantees, writing contracts, and monitoring. Pg. 54 – Transaction costs 10. The costs to handle a physical or electronic bill are _______ costs. Pg. 55 – Invoicing 11. Physical and Internet costs to pay are ________ costs. Pg. 55 – Payment 12. Physical or digital movement of goods and services are ______ costs. Pg. 55 – movement of goods/services/transportation/logistics 13. __________ are higher when one goes to the marketplace for e-commerce firms and for those that are more physically based. Pg. 55 – Transaction costs 14. The major difference in economics between e-commerce businesses and physical businesses are the much higher ___________ of the traditional firm. Pg. 55 – business exchange costs 15. The use of _____________ drives the Networked Economy. Pg. 56 – open systems architectures and standards 16. Enhancing products and services with _____ drive the Networked Economy. Pg. 56 – information 17. A firm that has ________ at its command can short-circuit long and cumbersome physical systems to respond more effectively to customers. Pg. 57 – information 18. _______ are those technical features of a network that allow for free and open exchange between all parties in a market. Pg. 57 – Open systems architectures and standards 19. The more open systems and standards are, the more __________. Pg. 58– competitive the marketplace 20. Products and services that can be tracked, monitored, and dynamically rerouted or repurposed depend on _____________. Pg. 58 – information visibility

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 3 Test Bank 1. The supply side of electronic commerce includes a. All the makers of hardware that allow for connections between senders and receivers b. Secure the network and the ends of the networked connections, c. Design of the system d. Installation and management of the system e. All of the above (pg. 74) 2. The demand side of e-commerce includes a. Businesses b. Consumers c. Intermediaries d. Suppliers e. All of the above (pg. 74) 3. The relationship between classes of providers in the e-commerce Industry Provider Structural Model suggest that the central feature of the structure is a(n) _______ . a. Client-server model (pg. 75) b. e-commerce model c. Hex Model d. Relationship model e. Entity model 4. A _________ is a piece of software running on a PC, a high-end workstation, or another device, such as a thin client or a network computer. a. Server b. Client (pg. 75) c. Network d. Router e. Hub 5. Firms which provide services for processing, certifying and handling billing and payments of e-commerce transactions are ________. a. Negotiators b. Mediators c. Principal intermediaries (pg. 76) d. Top management e. Innovators

6. Providers who create software seen as pragmatic rather than technical applications are a. Client-side software providers (pg. 79) b. Server-side software providers c. Network Access Services Providers

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 3 Test Bank d. e-commerce-related Hardware Manufacturers e. e-commerce Payment/Billing Software Providers 7. Common carriers such as AT&T and British Telecomm are included in this category. a. Client-side software providers b. Server-side software providers c. Network Access Services Providers (pg. 80) d. e-commerce related Hardware Manufacturers e. e-commerce Payment/Billing Software Providers 8. This class includes software for network operating systems or administrative support. a. Client-side software providers b. Server-side software providers (pg. 80) c. Network Access Services Providers d. e-commerce-related Hardware Manufacturers e. e-commerce Payment/Billing Software Providers 9. Firms that create software for electronic money, electronic billing and payment, micro payment, electronic banking and point of sale processing are in this class of provider. a. Client-side software providers b. Server-side software providers c. Network Access Services Providers d. e-commerce-related Hardware Manufacturers e. e-commerce Payment/Billing Software Providers (pg. 81) 10. Firms which are intermediaries in e-commerce such as banks and information providers, which process electronic payment provide electronic receipt and payment of bills, offer electronic money services and electronic banking services are a. Client-side software providers b. Server-side software providers c. Network Access Service Providers d. e-commerce-related Hardware Manufacturers e. e-commerce Payment/Billing Software Providers (pg. 81) 11. Firms which install corporate Intranets, network hardware and software, edi and web oriented software fall in this provider class a. e-commerce Designers/Installers (pg. 82) b. e-commerce Security Providers c. e-commerce Management Providers d. e-commerce-related Hardware Manufacturers e. e-commerce Payment/Billing Software Providers

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 3 Test Bank 12. Organizations that manage the Internet and set communication protocol standards are major objects in this class. a. e-commerce Designers/Installers b. e-commerce Security Providers c. e-commerce Management Providers (pg. 82) d. e-commerce-related Hardware Manufacturers e. e-commerce Payment/Billing Software Providers 13. Providers that bundle asset protection, privacy, and security standards are included in this class. a. e-commerce Designers/Installers b. e-commerce Security Providers (pg. 82) c. e-commerce Management Providers d. e-commerce-related Hardware Manufacturers e. e-commerce Payment/Billing Software Providers 14. ________ is a critical provider function perceived by users as a major enabler of e-commerce a. Sales b. Advertisement c. Mediation d. Payment (pg. 84) e. Insurance 15. __________ was the only category that includes both services and software and is seen as an infrastructrual capability for the entire industry a. Software b. Services c. Client servers d. Management providers e. Security (pg. 84) 16. Since e-commerce is such a rapidly changing phenomenon, mangers in the industry need to make ___________ about their industry group and determine how to compete effectively in the industry. a. Strategic decisions (pg. 84) b. Resolutions c. Stereotypes d. Announcements e. Innovations 17. The future of the Internet will depend on how well it is _________. a. Developed b. Adopted c. Received d. Governed (pg. 84)

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 3 Test Bank e. regulated 18. The ________ model represents a stakeholder perspective on how technologies are applied and it describes the fundamental interactions taking place between groups. a. Client-server model b. Industry Provider Structural model c. The Hex model (pg. 85) d. The e-commerce Activity model e. The Internet Connectivity model 19. The Hex model is a _________model a. Firm-centric pg. 86 b. Supply c. Demand d. Revenue e. Foreign investors 20. A broad term for all forms of electronic activity across networks between businesses are ______ exchanges of information a. B2C b. B2G c. C2C d. B2B (pg. 87) e. B2I 21. A form of data exchange between businesses utilizing specific formats known as protocols is a. Electronic data interchange (pg. 87) b. Extranets c. Intranets d. Information highway e. None of the above 22. Which of following is NOT a class of business exchanges with other businesses? a. Electronic Trading Network b. Internet B2B c. Electronic data interchange d. Application formats e. Proprietary standards (pg 87) 23. Firms that derive revenues or cost savings from Web sites that connect them directly to their customers are _________ exchanges of information. a. B2C (pg. 87) b. B2G c. C2C

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 3 Test Bank d. B2B e. B2I 24. Firms which have access to regulations that govern their activities and communicate with government official in matters related to the firm’s interest are a. B2C b. B2G (pg. 88) c. C2C d. B2B e. B2I 25. The current Internet protocol is a. TCP/IP (pg. 91) b. MNC c. IPV6 d. IPV4 e. None of the above 26. __________ are ways for firms to allow selected customers access to specialized data a. Intranets b. Protocols c. Transmissions d. Standards e. Extranets (pg. 91) 27. Which of the following is NOT a level of aggregation of e-commerce activity? a. Organization to organization b. Organizational unit to organizations unit c. Organization to consumer d. Seller to Buyer e. Organization to Buyer (pg. 94) 28. __________ are at the highest level of aggregation. a. Intranets b. Extranets (pg. 93) c. Filters d. Passwords e. Network connections 29. Which of the following can NOT transmit over the internet a. Telephony b. Video c. Audio d. Products (pg. 98) e. Data

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 3 Test Bank

30. _________ occurs when the medium permits immediate or real time responses. a. Interactivity (pg. 99) b. Isolation c. Virtual reality d. Holograms e. All of the above True and False 1. A standard push-pull phenomenon is found in nearly all technology-driven markets. Pg. 74 – T. 2. Users discourage innovations by trying out and purchasing software. Pg. 75 – F. 3. A client is a piece of software running on a PC, a high-end workstation, or another device such as a network computer. Pg. 75 – T 4. Network computers have just enough software on them to be able to readily access the Internet. Pg. 75 – T 5. Consumers are typically users of “client side” software and hardware.pg. 75 – T 6. The future of the Internet depends on the establishment of proprietary standards on ecommerce by various governments. Pg. 84 – F 7. The future of the Internet will depend on provider structures. Pg. 84 – F 8. Bandwidth is reflected in the speed of the client-server network. Pg. 10 – T 9. The Hex model describes, among other things, types of e-commerce stakeholders and the ties between them. Pg. 85 – T 10. Boundaries in the Hex model are closed between the firm and the other stakeholders. Pg. 85 – F. 11. Security systems act as a filter to repel illegitimate use. Pg. 91 – T 12. The Internet has built in restrictions on access or usage. Pg. 93 – F 13. A firm’s interaction with the government can be dramatically affected by government Internet policy and statutes. Pg. 89 – T 14. Intranets use web-based interfaces. Pg. 89 – T 15. An Intranet requires that a firm be connected to the Internet. Pg. 89 – F 16. Extranets permit those outside an organization to access an organization’s internal network using open protocols like TCP/IP. Pg. 91 – T 17. The Internet has no built-in restrictions on access or on usage. Pg. 93 – T 18. Passwords are required to access the Internet. Pg. 93 – F. 19. The most widely recognized level of activity on the Internet is seller to buyer. Pg. 94 – F. 20. E-commerce involves technological-human modes of exchange. Pg. 96 – T.

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 3 Test Bank

Short Answer 1. The interaction between the ___________ sides of electronic commerce is an important first step in appreciating the power of this technological transformation. Pg. 74– Supply and Demand 2. The _________ side includes all the makers of hardware that allow for connections between senders and receivers, secure the network and the end of the networked connections, and design, install, and manage the entire system. Pg. 74 – Supply 3. The _______ side includes the various businesses, consumers, intermediaries, suppliers, and complementors who use the technologies provided by the industry. Pg. 74 – Demand 4. _________ is a serious technical problem because it impacts the willingness of consumers to buy online. Pg. 75 – Download delay 5. ___________ are available to speed up downloads by factors of 4-8. pg. 75 – Download accelerators 6. ___________ is creating a balance between competition and cooperation. Pg. 84 – Co-opetition 7. The __________ describes the fundamental interactions taking place between ecommerce stakeholders. Pg 86 – Hex model 8. The __________ chain is the underlying structure that ties firms together and is the most instrumental in the ultimate success of e-commerce in firm. pg. 85 – Supply 9. Firms are deriving revenues or cost savings from _____ that connect them directly to their customers. Pg. 87 – Web sites 10. The __________ is a consortium of firms that pool their purchases to increase volume purchasing and thus lower their costs. Pg. 87 – Electronic Trading Network 11. __________ result in higher productivity and provide the firm with new tools. Pg. 89 – Intranets 12. ________ require that a firm be connected to the Internet. Pg. 91 – Extranets 13. __________ include computer-to-computer, computer to human, and human-tohuman interaction. Pg. 96 – Modes of interaction 14. ________ includes data, text, web pages, Internet telephony, Internet video, virtual reality and holograms. Pg. 98 – Media 15. The ______ is the most open communication and transactional concept ever invented. Pg. 93 – Internet 16. The primary and most critical function of an Intranet is to _______ the internal functioning of the business unit. Pg. 94 – Support. 17. _________ differs on richness, social presence, and interactivity. Pg. 98 – ecommerce media 18. ________ occurs when the medium permits immediate or real time responses. Pg. 99 – Interactivity 19. __________ permits senders and receivers to talk to each other over the Internet. Pg. 99 – Internet Telephony

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 3 Test Bank 20. The mix of media a firm chooses to use in e-commerce settings is critical to how customers perceive _______. Pg. 94 - Responsiveness

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 4 Test Bank 1. A 56K connection will upload or download data at a maximum of about_________ characters per second? A. 1-6k characters per millisecond B. 6-12k characters per second C. 3-6k characters per second p.115 D. 4-6k characters per millisecond E. None of the Above 2. How many bits are in a byte? A. 6 B. 8 p.115 C. 7 D. 16 E. 32 3. The software that interprets http is known as_________. A. A browser p.119 B. An icon C. The Internet highway D. TCP/IP E. Client-server software 4. The World Wide Web is made up of a combination of A. the internet running via TCP/IP B. the HTTP infrastructure C. browser software D. TCP/IP protocol E. All of the above pg. 119 5. Point to point connections are ____ in that no one other than the two parties involved in the transaction has access to the private network. A. Open B. Closed p.123 C. Blocked D. Serial E. Parallel 6. The translation mechanism that currently characterizes the Internet, and increasingly, LANs is known as? A. Http B. XML C. TCP/IP pg. 124 D. Wireless transmission E. Digital signature

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 4 Test Bank 7. ___________ was the original set of specifications designed for the Internet and specified how information needed to be formatted in order for it to be interpretable at the receiving end. A. Original protocol code B. Darpanet C. Transmission control D. Internet protocol pg. 117 E. The World Wide Web 8. IP protocol did not have methods for dealing with ____and therefore TCP was added to the protocol. A. Closed networks B. Open networks C. Errors pg. 117 D. Transmissions E. Packets 9. _________ are packets of data which are transmitted to router computers or nodes, which are then sent on to other nodes until they finally reach the intended recipient. . A. Closed networks B. Open networks C. Errors D. Transmissions E. Packets pg. 117

10. A technology that has been used for decades by banks to move money around electronically is _____ A. Robust B. EDI C. EFT p.121 D. Proprietary E. Residential 11. A decades-old technology/protocol that allows firms to send transactions directly over the network and to bypass physical processes is ___________. A. Robust B. EDI p.121 C. EFT D. Proprietary E. Sedentary 12. The time required to download a web page is called _________.

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 4 Test Bank A. Real time B. Imaginary time C. Domain name time D. Wait time pg. 120 E. Standard time 13. Breaking away from a closed system means that NEOs will adopt an __________system architecture. A. Open p. 123 B. Closed C. Proprietary D. EDI E. Robust

14. The _________ includes the connections that route signals from one node computer on the network to another, or internally between sub-nodes. A. Legacy system B. Infrastructure pg. 114 C. Enterprise system D. Networks signals E. Telecommunications system 15. The availability of alternative routes is why people say the Internet is a ______network A. Closed B. Robust p.121 C. Open D. Private E. Both A and B 16. The ______ of a message is determined according to available connections and capacity. A. Content B. Text C. Route pg.114 D. Format E. Tracing

17. The simplest connection to the Internet would be the use of a(n) _________ to an Internet Service provider.

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 4 Test Bank A. Parallel cable system B. laplink C. Electronic transfer D. Fiber optic connection E. Dial-up connection pg. 115

18. Messages need to be sliced into certain sizes for _________ A. Transmission pg. 116 B. Packet installation C. Evaluation D. Use in email applications E. None of the Above

19. The speed with which the computer can upload or download information from the Internet depends partly on the ability of your computer’s _________. A. Hardware and software pg. 115 B. Operating system C. Browser D. Hard drive E. Storage 20. Nodes on the Internet are able to dynamically ________ packets if a node connection is lost or down. A. Eliminate B. Receive C. Re-engineer D. Regenerate E. Reroute pg. 117

21. ___________ are labeled in the protocol with IP addresses so that the destination is known to all the network nodes that receive and forward the packet. A. Errors B. Data contents pg. 117 C. Routers D. Requirements E. Specifications 22. By adopting a(n) _______ that was freely available, the spread of the Internet was not hampered by commercial profiteering. A. Regiment

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 4 Test Bank B. Address C. Protocol pg. 117 D. Graphical interface E. Cyberspace 23. _________ was the original graphical interface that permitted an easy-to-use means of interaction with the Internet for users. A. Netscape B. Internet Explorer C. Mosaic pg. 118 D. Linux E. None of the Above

24. Nodes use ______to route requests and services. A. Domain name servers p.120 B. Entities C. Other nodes D. Robust networks E. Microwaves 25. With the _____ protocol in place, software at the receiving end can ensure that hypertext and hypermedia can be displayed and played properly. A. IP B. TCP C. DSL D. ISDN E. HTTP pg. 119 26. The combination of the Internet running on TCP/IP, the http infrastructure, browser software, applications constitutes what is known as the __________. A. Arpanet B. World Wide Web pg. 119 C. Browser capability D. Enterprise system E. Legacy system 27. _________ respond to requests from clients for web pages. A. Servers pg. 120 B. Administrators C. Node networks D. Routers E. System engineers 28. Each node on the Internet has a table of ________

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 4 Test Bank A. Unique identifiers B. Referential pointers C. Primary fields D. Addresses E. Domain name servers pg. 120 29. What is a browser? A. Hypertext protocol B. Software that interprets HTTP p.119 C. Internet protocol D. Internet service provider E. None of the above

30. __________ are the NE software elements that utilize the various networks. A. Networks and browsers B. Clients and servers pg. 121 C. Intranets and Extranets D. Internet protocols E. Domain servers

True/False 1. VANS means Value-Added Networks. T p.5 2. The translation mechanism that currently characterizes the Internet and, increasingly LANs is known as Transmission Control Procedure/Internet Protocol or TCP/IP. T p. 6 3. The browser software originally designed to interpret http was known as Mosaic. F p. 7 4. Domain names were associated with numeric or alphanumeric IP addresses and therefore these easy to-remember addresses became one of the reasons for the enormous success of the Internet. T p. 9 5. ISPs are the Internet Service Providers who maintain large nodes on the Internet and sell access to individuals and firms. T p. 11 6. Point-to-point connections are open in that no one other than the two parties involved in the transaction has access. F p.13

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 4 Test Bank 7. EFT or electronic funds transfer is an older technology that has been used for decades by banks to move money around electronically. T p.11 8. Breaking away from closed systems means that NEOs will need to adopt open systems architecture. T p.13 9. Some networks applications between organizations run on proprietary networks and not on the Internet. T p.11 10. The WWW was the basic infrastructure (and middleware) that eventually allowed the development of commercial sites. T p.9 11. It is important for managers to recognize that hardware drives the development of NEOs. T p.11 12. The basic infrastructure of a public telecommunication network depends on a combination of physical and microwave connections. T p.17 13. Nodes on the Internet cannot re-route packets if a node connection is lost or down. F p.4 14. If a route is broken or lost, an alternate route cannot be used. F p. 11 15. Clients and servers are the NE software elements that utilize various networks. T pg.11 16. The Internet is sometimes considered to be a robust network. T p. 11 17. Each node on the Internet has a table of DNSs or Domain Name Servers. T pg. 11 18. There are 7 bits in a byte. F p. 5 19. The three levels of technology that together describe NE technology, Basic Ne Infrastructure, NE middleware, and NE applications. T P. 3 20. A byte is used to represent an alphanumeric character. T p.5

QUESTIONS 1. How many bits are in a byte? P. 5 8 2. Value Added Networks are sometimes referred to as what? P. 5 VANs 3. The software that interprets http is known as a _______? P. 9 browser

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 4 Test Bank 4. Why is the Internet considered a “robust” network? P.11 the availability of alternative routes 5. The basic infrastructure of a public telecommunications network depends on a combination of what kind of connections? P. 17 physical and microwave connections 6. What are ISPs? Answer: Internet Service Providers who maintain large server nodes on the Internet and sell access to individuals and firms. Pg. 11 7. A firm that provides you only with ________ does not add value to your use. Pg. 5 internet access 8. What is an ISDN ? P.11 Integrated Service Digital Network 9. What is EDI? P. 11 Electronic Data Interchange 10. What is DSL? P. 11 Digital Services Line 11. Describe EDI. P. 11 EDI is a decades-old technology/protocol that allows firms to send transactions directly over the network and to bypass physical processes. 12. What technology have banks been using for decades to move money around electronically? P. EFT Electronic Funds Transfer pg. 11 13. ______________ was extremely important in the development of the Internet as a medium of communication? Open protocol/systems pg. 7 14. What are three levels of technology that together describe NE technology? P. 3 Basic NE infrastructure, NE middleware, and NE applications. 15. What is TCP/IP? P. 6 the translation mechanism that currently characterizes the Internet. 16. What is the transmission network that currently characterizes the Internet? P. 6 TCP/IP 17. Data to be transmitted may be thought of as traveling in units known as what? P. 7 packets 18. What protocol allows the display of hypertext and hypermedia? p. 9 http hypertext/hypermedia 19. The combination of the Internet running on TCP/IP, the http infrastructure and the browser software constitute what is known as the ________. P. 9 World Wide Web

Straub, Foundations of Net-enhanced Organizations, Wiley, 2003, Chapter 4 Test Bank

20. What are the NE software elements that utilize the various networks? P. 11 clients and servers

Chapter 5 1. ________ technologies lie between the basic infrastructure and the applications that users eventually interact with. a. Shareware b. Middleware pg. 131 c. Vaporware d. Freeware e. Netware 2.

The major functionality of middleware derives from the ability to ________across time and space. a. Traverse b. Transform c. Communicate pg. 131 d. Digitize e. None of the above

3. The middleware that users are most familiar with are _________ a. WebPages b. Databases c. Spreadsheets d. Word Processors e. Browsers pg. 133 4. _____________ are computer programs that are designed to interpret Web pages sent using http (protocol) over the Internet. a. Browsers pg. 133 b. Routers c. Viruses d. Shareware e. All of the above 5. The essential characteristic of a browser is to allow a user to _______ the World Wide Web. a. Browse pg. 133 b. Maintain c. Program d. Reengineer e. Encrypt 6. _________ are small programs that are capable of manipulating user inputs called for by the Web page as it is displayed. a. Scripts b. Defaults c. Applets pg. 134

d. Runs e. Pointers

7. The most essential element of a ________ is its ability to compile and run designated server programming languages. a. Browser b. Server pg. 136 c. Network d. Program e. None of the above 8. __________ are short segments of data that are written on the users’ hard disk. a. Passwords b. Menu’s c. Cookies pg. 136 d. Viruses e. Url’s 9. _________ computers are used to store and process basic accounting data, among other data. a. Legacy systems pg.136 b. Enterprise system c. Configured system d. Networked e. None of the above 10. ___________ is a technology for securing the communications between parties from unauthorized access, interruption, and authentication. a. Shareware b. Securityware c. Officeware d. Encryption pg 139 e. Privatization 11. _____is middleware because it converts plaintext on one end of the transmission to an unreadable ciphertext and then, at the other end, translates it back into plaintext. a. Reverse software b. Encryption software pg. 139 c. Transmission software d. Cipherware e. Text transmission software 12. _________ includes cell phones with Internet access and more intelligent interfaces such as PDA’s, or personal digital assistants.

a. b. c. d. e.

Electronic commerce Network commerce International commerce Portable commerce Mobile commerce pg. 139

13. _________ depends on a wireless infrastructure and wireless connection to the Internet. a. Mobile commerce pg. 139 b. Electronic commerce c. Network commerce d. International commerce e. Portable commerce 14. The connection between wireless devices and the Internet uses a _________. a. HTTP protocol b. STMP protocol c. XML protocol d. TCP/IP protocol e. Wireless Access Protocol pg. 139 15. The reason it is important that managers understand the fundamentals of ______is that investment decisions depend on managers not misunderstanding how such systems work. a. Shareware b. Vaporware c. Middleware pg. 140 d. Outerware e. Freeware 16. _________ is viewed by many as the “killer” application on the Internet. a. MSN b. Email pg. 143 c. Calendar programs d. Download sites e. Project management 17. Internet junk mail is known as _________ a. Worms b. Trash c. Pop-up d. Spam pg. 144 e. Flaming 18. Many Web applications offer their services for free, but make their profits through _______.

a. b. c. d. e.

Advertisements pg. 145 Dissemination of information Customer service Lotteries Online gambling

19. _________ are intelligent agents, programs that are coded to look for pages and their embedded links. a. Applets b. Scripts c. Bots pg. 146 d. Avatars e. None of the above 20. The formula for fees for advertising on the Internet can be based on a. The number of times an ad is returned to a user b. The number of click throughs c. User purchases d. None of the above e. All of the above pg. 146 21. __________ revenue models derive their income from the fact that customers are “referred” to a Website from another site. a. Subscription b. Referral pg. 147 c. Shared infrastructure d. Product/Service e. Other 22. __________ revenue models represent a fee-for-services model that is based on a flat fee, usually for a certain time period. a. Subscription pg. 147 b. Referral c. Shared infrastructure d. Product/Service e. Other 23. In________ revenue models, the revenues can be derived from selling the use of a server-network infrastructure. a. Subscription b. Referral c. Shared infrastructure pg. 152 d. Product/Service e. Other

24. __________ interpret Web pages written in HTML (Hyper-text Markup Language or XML (Extensible Markup Language). a. Windows b. Scripts c. Cookies d. Interfaces e. Browsers pg. 133 25. A language that can be used to program server responses is _______. a. ASP b. CGI c. Perl d. PHP e. All of the above pg. 136 26. If one or more _______ have been set, users’ past behaviors and interests can be identified. a. Pointers b. Databases c. Worms d. Plug-ins e. Cookies pg. 136 27. Languages/applications resident on the client are known as _______. a. Plug-ins pg. 137 b. Cookies c. Worms d. Databases e. Pointers 28. _________ software is both a client and server middleware. a. Shareware b. Vaporware c. Encryption pg. 139 d. Voice recognition e. None of the above 29. The ability of _________ to access the Internet in an “anyplace” context will transform organizational tasks and likely lead to huge productivity. a. E-Commerce b. I-Commerce c. M-commerce pg. 139 d. M-life e. Win-commerce 30. ________ is a substitute protocol for TCP/IP.

a. b. c. d. e.

HTTP WAP pg. 139 XML HTML NEX

TRUE AND FALSE QUESTIONS 1. A JavaScript applet can send information about who is accessing the Web page to a public site. T. pg. 134 2. Browsers are not limited to just displaying symbols, but also manipulating them. T. pg. 134 3. The most essential element of a server is its ability to compile and run designated server programming languages. T. pg. 136 4. Programs written for a server work to fulfill client requests from the operating system. F. pg. 136 5. “Tracks” are short segments of data that are written on the user’s hard disk. F. pg. 136 6. Cookies can be disenabled by the user, but the default on most browsers is usually that cookie-setting is enabled. T. pg 136 7. The Web page that is downloaded to the user may also rely on language/applications resident on the client. T. pg. 137 8. Client and servers are both shareware which translate access. F. pg.139 9. Encryption is a technology for securing the communications between parties from unauthorized access, interruption, and authentication. T. pg. 139 10. Mobile commerce depends on a wireless infrastructure and wireless connection to the Internet. T. pg. 139 11. The protocol typically used for wireless devices is HTTP. F. pg. 139 12. Download services are viewed by many as the “killer” application on the Internet. F. pg. 143 13. The protocol used by email on the Internet is WAP. F. pg. 143

14. Many web applications offer their services for free but make their profits through advertisements. T. pg. 145 15. Bots are intelligent agents, programs that are coded to look for pages and their embedded links. T. pg. 146 16. Referrals derive their income from the fact that customers are “referred” to a Website from another site. T. pg. 147 17. Product/Service Sales-Based Applications represent a fee-for-services model that is based on a flat fee, usually for a certain time period. F. pg. 147 18. The Subscription model derives revenues from selling the use of a server-network infrastructure F. pg. 148 19. Historically, email was limited to in-house company systems or to communities of interest. T. pg. 143 20. When the Internet was created, the limitations of BITNET were removed and commercial and other organizational nodes were permitted. T. pg. 143 QUESTIONS

1. What is middleware technology? Pg. 131 Middleware technologies provide the bridge between networks, which are hidden from users, and the applications to which users are responding. 2. Describe the purpose of a browser? Pg. 133 The purpose of a browser is to interpret Web pages written in HTML or XML downloaded from a server. 3. Name four popular server programming languages. Pg. 136 ASP, CGI, Perl, PHP, or Cold Fusion 4. Explain the purpose of a "cookie". Pg. 136 Cookies are short segments of data which identify past behaviors and interests of the user and are written on the user's hard disk. 5. Define encryption. Pg. 139

Encryption is the technology used for securing communications between parties from unauthorized access, interruption, and authentication. It utilizes a scramblingdescrambling approach to security. 6. What is the key differentiating factor in m-Commerce technology? Pg. 139 The key differentiating factor in this technology is that it depends on a wireless infrastructure and wireless connections to the Internet. 7. What are the limitations of compact m-Commerce technology? Pg. 139 Only so much information can be conveyed and displayed because of their size. 8. What is the protocol used for wireless devices and the Internet? Pg. 139 The protocol is WAP, or Wireless Access Protocol. 9. What is a FTP protocol? Pg. 142 FTP protocol can be activated on the Internet itself or within browsers and the WWW, and allows websites to upload software or data upon user request. The protocol specializes in transferring files of any type. 10. Describe the protocol used by email on the Internet. Pg. 143 The protocol used by email on the Internet is IP. The portion of the email IP address following the @ symbol is the node. STMP is another protocol used for email applications. 11. What is Spam? Pg. 144 Spam is Internet junk mail which is broadcast to an email list. 12. List five revenue models. Pg. 144 Charges for advertisements, referral fees, subscriptions, product/service sales and Transaction fees. 13. What is a common communications media model? Pg. 145 Web applications that offer their services for free but make their profits through advertisements. 14. Which application is viewed as the killer application on the Internet? Pg. 143 Email

15. Why is it important for managers to understand the fundamentals of middleware? Pg. 140 Investment decisions depend on managers not misunderstanding how such systems work. 16. Which protocol does the WWW use? Pg. 141 HTTP 17. Which protocol can be activated on the Internet itself or within browsers and the WWW, the latter of which allowing Websites to upload software or data upon user request? Pg. 142 File Transfer Protocol 18. What are characteristics of email? Pg. 143 It employs its own protocol and has rapidly extended the use of the Internet to hundreds of millions of users. 19. How can email be used in NE commerce? Pg. 143 To advertise and to induce sales. 20. Explain why Spam may be counter-productive pg. 144 Spam can irritate customers rather than win them over.

Chapter 6 1. A list that tells organizational computers which operations are permitted and which users may or may not have access to applications is a(n). A. access control p. 174 B. business continuity plan C. disaster plan D. encryption list E. SET F. relational database list 2. A set of contingency plans which outlines how to temporarily ensure business operational recovery in case of disaster is a(n) _______. A. access control list B. business continuity plan p.165 C. encryption plan D. disaster recovery plan E. electronic newsgroup F. None of the Above 3. An authority that verifies credentials and issues digital certificates which include linked public and private keys is a(n) _______. A. digital certificate B. digital signature C. certificate authority p.172 D. secure socket layer E. electronic signature F. electronic authority

4. A ___________ is a contracted outsourced disaster recovery facility which acts as a repository of a firm’s backup data and software and which has the capabilities to provide the firm with a temporary Internet connection. Hardware and other office equipment are rented from other outsourcing firms. A. disaster plan B. Hot Site C. data mine D. cold site p. 166 E. alternative outsource F. network application 5. The _________ is that stage in the entire online business exchange where customers share valuable information and where they need to be reassured that the vendor at the other end of the cyberspace transaction is legitimate.

A. development stage B. point of payment stage pg. 162 C. design stage D. implementation stage E. evaluation stage F. analysis stage

6. A warranty issued by a certificate authority that establishes credentials and identity is a ____________. A. digital certificate p.172 B. digital signature C. certificate authority D. secure locket layer E. electronic signature F. electronic authority

7. An electronic code used to authenticate the identity of the sender of a message is a ________. A. digital certificate B. digital signature p. 172 C. certificate authority D. secure locket layer E. electronic signature F. electronic authority 8. A plan which deals with the loss of electronic data, records and files, workstations, servers, and printers is a __________. A. firewall B. security plan C. disaster plan p.165 D. transition plan. E. development plan F. organizational plan 9. An in-house alternative to outsourcing disaster recovery facilities through mirroring systems and data in different locations throughout the organization is a(n) _______. A. hot site B. cold site C. momentary site

D. distributed computing with excess capacity at each distributed site pg.166 E. mirrored site F. client-server site

10. _____ is a method of payment wherein authorization of payment is immediate. The funds may reside electronically in the card or in a bank account. A. e-cash B. EFT C. credit cards D. debit cards p.184 E. online public transfers F. money orders 11. _____ is a system whereby there are automatically authorized withdrawals from an account for goods or services. There is no physical card, and the transactions can deal with micropayments or charges in partial cents. A. e-Cash p.185 B. EFT C. credit cards D. debit cards E. online public transfers F. None of the Above

12. Computer abusers are typically and most often seeking _______. A. Trade secrets B. Strategic information C. Private data D. Time sensitive information E. Credit card information F. All of the above pg. 167 13. A security technique which protects the integrity of messages and authenticates the identity of senders by scrambling transmissions is _________. A. a public transfer B. a firewall C. encryption p.169 D. public key infrastructure E. secure socket layer F. privatized

14. In Internet security terms, threats to servers and clients, unauthorized intrusions such as viruses or worms, or attempts by hackers to penetrate systems are known as _________. A. fires or threats p.174 B. firewalls C. encryption D. a public key infrastructure E. a secure socket layer F. distributed computing sites

15. Software or hardwire that protect endpoints of systems from unauthorized intrusion from the outside are known as ____________. A. fires B. firewalls p.174 C. encryptions D. public key infrastructures E. secure socket layers F. distributed computers 16. A contracted outsourced disaster recovery facility which has backups not only of data and software, but also provides network connections and necessary hardware is a _______. A. secured electronic environment B. fire site C. cold site D. hot site p.166 E. relational network system F. capacity related system

17. __________ is how most prudent organizations secure mission-critical transmissions. A. encryption pg. 169 B. backup C. parallel transmissions D. private keys E. networks F. electronic data interchange

18. The most effective encryption scheme for the Internet is known as __________. A. public key infrastructure pg. 169

B. the reliability factor C. private key D. a secured key E. All of the above

19. _________ (is)are electronically authorized transfer of funds over a public network like the Internet and are often used in transactions in the NE online securities market. A. E-cash B. EFT C. Online public transfers p.185 D. Credit cards E. Certificates of deposit F. IRAs 20. What does PKI stand for? A. Public key intermediary B. Private key infrastructure C. Private key intermediary D. Public key infrastructure p.189 E. Public keen infrastructure F. Private kind intermediary

21. Which of the following are trust-building mechanisms? A. High perceived security of website or EDI transaction B. Third party guarantors of transactional integrity C. Responsiveness of vendor to customer inquiries D. Heightened sense of social presence in Website E. All of the above pg. 189 F. None of the Above 22. A single key encryption scheme would use the key to scramble the plaintext at one end of the transmission and descramble the ciphertext at the other end is a ____________? A. public key B. private key p. 170 C. public key infrastructure D. secure locket layer E. secure electronic transmission

23. A key that can be made known without a breach in security is a ________. A. public key p.171 B. private key C. public key infrastructure D. secure locket layer E. secure electronic transmission F. public access fire code

24. A _________ is an asymmetric encryption scheme using two keys (public and private) which prevents abusers from reading or altering transmitted messages. The scheme involves message transformation through the use of an algorithm which changes the characters and symbols from plaintext to cyphertext. A. public key B. private key C. public key infrastructure p.169 D. secure locket layer E. secure electronic transmission F. disaster plan 25. A term in the security profession that indicates a firm’s ability to survive an outage of its computer system, measured either in days or hours is the __________. A. data disaster timeline B. disaster event horizon C. mean time for belly up p. 164 D. cold site E. firewall replacement schedule F. secured replacement environment plan 26. Original text form (or unencrypted form) of a transmission before being transformed by encryption into cyphertext is ___________. A. encrypted text B. plaintext pg. 191 C. cyphertext D. encryption E. hypertext 27. The early form of PKI used to secure transmissions across the Internet, using browser-enabled software which secures transmission (for authentication purposes) by a key generated for each session is a ____________. A. SET

B. public key infrastructure C. secure socket layer p.173 D. fires E. hot site F. firewall

28. Password protection is less secure than _____. A. integrity B. digital signatures p.187 C. quality and reliability D. NE trust Factors E. good faith F. no passwords 29. A form of payment which is highly secure but limited in ease of participation by its closed proprietary nature is _______. A. EFT pg. 186 B. credit cards C. debit cards D. e-cash E. online public transfers F. secure transmission options

30. A more advanced protocol than SSL, using scrambling techniques which verifies all transactions but prevents merchants and vendors from directly accessing actual credit card numbers is ____________. A. secure electronic transmission p.173 B. secure socket layer C. encryption D. privatized sockets E. EFT F. http

Chapter 6 True/False 1. The full potential of NE will not be realized without safe and efficient procedures and computer systems to facilitate business transactions over the Internet. T. p.162

2. Some forms of user trust in the Website and e-vendor may be decreased by certain trust-creating characteristics of the Website itself. F. p.162 3. The point of payment is the stage in the entire online business exchange where customers share valuable information and where they need to be reassured that the vendor at the other end of the cyberspace transaction is legitimate. T. p.162 4. The term MTBU is sometimes used to indicate the organization’s survivability in the face of a disaster. T. pg. 164 5. Network connections are critical to NEO’s. T. p.166 6. Cold sites have duplicates of hardware you are running as well as the network connections. F. p.166 7. Distribution of operations personnel and Web hosting is likewise a more risky option than depending on the fulfillment of a contract for the survival of the firm. F. p.166 8. SET is a more advanced protocol than SSL. T. p.173 9. Social presence is the sense that a human being or humanlike characteristics like interactivity are involved in the exchange. T. p.180 10. One of the keys to building trust is responsiveness. T. p.180 11. Password protection is more secure than digital signatures. F. p.186 12. One of the pros and cons of credit cards is that it is highly secure, but limited in ease of participation by its closed, proprietary nature. F. p. 187 13. In the most secure environment is PKI-encrypted digital signatures; in the least secured is password-protected in e-cash. T. p.187 14. Trust is a necessary precursor to online purchase and may be the single most important factor directly affecting the organizational and national prosperity and adaptability, including the acceptance on new IT. T. p.162 15. IP is when an abuser masquerades as another person. F. p.169 16. Encryption is how most prudent organizations secure mission-critical transmissions. T. p.169 17. Private keys are used by sending organizations to encrypt the message. F. p.171

18. It has been clear that the ends of transmission lines are strong links in security. F. p.174 19. One of the major advantages of SSL over SET is that the credit card number is scrambled to the viewing by the vendor. F. p. 173 20. Password access to the site, which means that the firm automatically knows something about the user, is another means of personalizing responses. T. p. 181

Chapter 6 1. What are the four basic security problems that NE commerce must be? p. 164 Ans. safe, secure from intentional violation, secure from unintentional violation, and recoverable. 2. What are the two avenues that are typically taken to ensure that the firm will survive a technological disaster? p. 165 Ans. Business Continuity Plan and Disaster Planning. 3. What are the three major options for restoration of the firm’s operations? p. 165 Ans. Cold sites, hot sites, and distributed computing with excess capacity at the distributed site. 4. When a disaster strikes, discuss what the recovery plans for the business should deal with? p.165 Ans. hardware, software, data, network connections, and personnel and alternative work processes. 5. Discuss what abusers are seeking? p. 167 Ans. Abusers seek trade secrets, strategic information, private data (such as password and identification information), time sensitive information, credit card information, and electronic funds transfer data. 6. What is a critical vulnerability in the overall NE system? p. 168 Ans. the network itself 7. The most effective encryption scheme for the Internet is known as? p. 169 Ans. Public Key Infrastructure 8. What is the goal of encryption? p. 169 Ans. The goal of encryption is to secure the transmission across the Internet so that if an abuser intercepts the message, they cannot either interpret the message and substitute in a false message without being easily detected.

9. Digital signatures operate through a trusted third party known as a ______? p. 172 Ans. A certificate authority. 10. What is an access control list? p. 174 Ans. The list tells organizational computers which computer operations are permitted to be executed by which users or processes. 11. What protects the end point of the system against unauthorized intrusions from the outside? p. 175 Ans. Firewalls 12. Threats to the servers and clients are called ______? p. 174 fires or security attacks 13. What are the four trust-building mechanisms? p. 179 Ans. High perceived security of website or EDI transaction, third party guarantors of transactional integrity, responsiveness of vendor to customer inquires, and heightened sense of social presence in Website. 14. What are the four payment options for NEOs? p. 184 EFT, credit cards, debit cards, and e-Cash 15. What does the term MTBU mean? p. 164 Ans. Mean time for belly up or how long a firm can survive a computer disaster without failing. 16. What are hot sites? p. 166 Ans. Hot sites have duplicates of the hardware you are running as well as the network connections. 17. What security technique has a high degree of security? p. 169 Ans. Encryption 18. What are two forms of PKI on the Internet? p. 173 Ans. Secure Socket Layer (SSL) and Secure Electronic Transmission (SET)\ 19. EFT, credit cards, debit cards, e-Cash, and online public transfers are all forms of _______? p. 184 Ans. NE payment options 20. What kind of plan should specify how the non-IT operations employees can continue their work in the event of a computer disaster? p. 165 Ans. business continuity plan

Chapter 7 1. A strong statement about the present goals of the organization, broadly stated is a _________. A. mission p.199 B. vision C. tactic D. metric E. standard 2. _________ are generally more long term and futuristic, and talk about new directions that the firm is considering as well as community endeavors. A. missions B. visions p.199 C. tactics D. metrics E. standards

3. _______ gauge the extent one has succeeded in achieving the organizational mission and vision. A. mission B. vision C. tactics D. metrics p.199 E. standard 4. Compared to an organization’s vision, mission statements are relatively ________ A. futuristic B. long-term C. short-term p. 200 D. disposable E. transferable

5. Tools for strategic analysis include_________ . A. Porter’ Three Producer Strategies B. Porter’s Five Forces Model in the E-Commerce Era C. the Electronic Value Chain D. Competitive Analysis

E. All of the above pg. 201

6. _________ are executed in the present but maintain the momentum of the firm into the future. A. goals B. objectives C. strategies p. 201 D. plans E. visions 7. This strategy requires that firms must usually develop economies of scale in order to drive down costs. A. low cost provider/ producer strategy p.203 B. niche strategy C. differentiation strategy D. competitive advantage strategy E. advertising strategy

8. This strategy requires that firms constantly seek out and implement ways to reduce costs in order to offer pricing that is attractive to consumers. A. low cost provider/ producer strategy p.203 B. niche strategy C. differentiation strategy D. competitive advantage strategy E. advertising strategy 9. This strategy depends on meeting very specific buyers’ needs for the goods or services of the producer.. A. low cost provider/ producer strategy B. niche strategy p.203 C. differentiation strategy D. competitive advantage E. None of the Above

10. A strategy in which customers are willing to pay a premium if the product or service has a value-added component that makes it different (and better) from what is being offered by the competition.

A. low cost provider/ producer strategy B. niche strategy C. differentiation strategy p.203 D. competitive advantage E. None of the Above

11. If there are few limitations that would keep a rival from entering exactly the same ecommerce business, then it can be said that the barriers to entry are ____and threat of new entrants is ________. A. high, likely B. low, unlikely p. 204 C. low, likely D. high, unlikely E. moderate, unlikely 12. Which is NOT a force of Porter’s Five Forces Model? A. rivalry B. barriers of entry C. threat of new entrants D. bargaining power of suppliers E. buyer applications pg. 204 13. The pressure that the supplier can exert on the firm for lower prices and contractual terms is the _________. A. bargaining power of the supplier p.205 B. business strategy C. bargaining power of the buyer D. competitive advantage E. core competency

14. What is the force that addresses the questions of how costly it is for the buyer to switch to your competitors. A. bargaining power of the supplier B. business strategy C. bargaining power of the buyer p.205 D. competitive advantage E. core competency 15. Porter’s Five Forces model can be criticized for being too focused on __________to the exclusion of the services, intermediaries, and retailers that largely dominate the new economy.

A. after-sales support B. production C. delivery D. manufacturing p.212 E. payment 16. Limitations of Porter approaches in NE environments include A. the scope of model coverage B. distinction between line and staff functions C. view of relationships with customers and suppliers as adversarial D. includes only entities of rivals, suppliers, and customers E. All of the above pg. 208 17. The first stage in the five basic steps in the interaction between a firm and its customers or suppliers in which information about products and services is sought out by customers is ________. A. after sales support B. delivery C. payment D. order/sale E. inquiry pg. 208

18. The firm that has implemented all five stages of the value chain will experience the lowest __________ costs. A. business transactions costs pg. 209 B. payment C. after-sales support D. delivery E. inquiry 19. In Porter’s Five Forces Model revisited in the NE Era, the first consideration is the ________. A. threat of substitute products B. bargaining power of the supplier C. barriers to entry D. bargaining power of buyers E. rivalry among existing competitor’s p 204 20. What is envisioned by Porter as an activity that is an essential or line function; it is clearly ongoing and in a real sense precedes the purchase of raw materials and the manufacture of product?

A. outbound logistics B. inbound logistics C. marketing p. 206 D. service E. operations

21. The last stage that is implemented in the value chain should be the _________? A. after sales support B. order/sale C. delivery D. inquiry E. payment pg. 211 22. Producing products and services that customers prefer to those of your competitors is __________. A. competitive advantage pg. 212 B. logistics C. bargaining power of suppliers D. relative competition E. None of the above 23. Most competitive advantages are _________? A. non-momentary B. sustainable C. momentary p.213 D. non-sustainable E. unreliable 24. _________ theory maintains that firms are superior to other firms when they possess superior resources. A. firm capability B. resource-based view pg. 214 C. Five Forces D. value chain E. sustainable 25. Strategic resources are _____. A. valuable B. rare C. imperfectly imitable D. nonsubstitutable

E. All of the above pg. 215 26. _________ changes are first order changes which are expected to result in lower costs and productivity improvements. A. Alpha pg. 221 B. Omega C. Beta D. Gamma E. Delta 27. ________ changes are long term changes in benefits to the firm and come about when the firm views the process of NE strategy as a learning process. A. Alpha B. Omega pg. 221 C. Beta D. Gamma E. Delta 28. The determination of the long-run goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals is a(n) __________ A. competitive advantage B. core competency C. niche strategy D. business strategy p. 199 E. suppliers 29. Creating and maintaining a competitive advantage over a period of time is possible if firms gather and creatively use their proprietary ________. A. customer data pg; 222 B. suppliers C. complementors D. strategic partners E. outsourcers 30. A stakeholder analysis is an assessment of the entities, their position in the market and their current or potential relationship with the firm and includes _____. A. customers B. suppliers C. outsourcers D. the government E. All of the above pg. 225

Chapter 7 True/False 1. A vision is a strong statement about present goals of the organization. F. p.199 2. Compared to mission statements, vision statements are short term. F. p.199 3. Vision statements are generally more long term than mission statements. T. p.199 4. Missions send signals to all stakeholders of a corporation about the purpose of the firm and how it should be evaluated. T. p.199 5. Mission statements tend to be orientated toward the future. F. p.199 6. Strategy is a key to maintain the momentum of the firm into the future. T. p.201 7. The only good strategy is one that informs the present and retains the sense of direction for employees and other stakeholders. T. pg. 201 8. According to Porter, marketing is an activity that is an essential or line function. T. p.206 9. The inquiry stage is the last stage that should be implemented in the value chain. F. p.209 10. Brochureware has few advantages over the yellow pages, other than it can be updated in real time and doesn’t have to wait for the annual hard copy publication. T. p.210 11. Menus and clickable icons allow users to navigate the site to the exact information they wish. T. p.210 12. Deploying the order process means that firms need to gather requisite information about the customer and confirm pricing and shipping data. T. p. 211 13. Legacy systems are reporting systems that do not handle order fulfillment. F. p. 211 14. Most competitive advantages are permanent. F. p. 213 15. Only strategic assets or resources qualify in assisting a firm to sustain a competitive advantage. T. p.215 16. Expertise is a core-competency of a firm when it involves some distinctive characteristics of a networked organizational structure. T. p.219

17. The first task in an environmental analysis is to determine exactly what business you are in. T. p.223 18. A firm needs to be able to multi-source its needs so that it is not dependent on a single source. T. p.226 19. The firm can and should carry out all the activities that are involved in the fulfillment process. F. p.226 20. Alpha, Beta, Gamma (or Omega) effects are effects that are used in measuring NE strategic success. T. p.220

Chapter 7 1. Define a business strategy. p.199 the determination of the long-run goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. 2. What are the four components of a corporate strategy? p.199 a mission, a vision, tactics, and metrics. 3. What are the four tools that can be successfully adapted to a new environment in strategic analysis? p.201 #1. Porter’s three producer strategies. #2. Porter’s Five Forces Model in the E-commerce Era. #3. Electronic Value Chain. #4. Competitive Analysis 4. What are the 3 Porter’s producer strategies? p. 203 1. Low Cost Provider/Producer (LCP) 2. Differentiated Product/Service Strategy. 3. Niche Market Strategy. 5. A strategy in which customers are willing to pay a premium, when the product or services has a value added component that makes it different (and better) from what is being offered by the competitor is called _____? p. 203 Differentiation strategy 6. This strategy depend on buyers needing the goods and services of the producers and providers forming relationships that are either deep and long lasting or short lived and arm’s length. p. 203 Niche strategy 7. What are the elements of Porter’s Five Forces Model? p. 204 rivalry among existing competitors, threats of new entrants, threat of substitute products, and bargaining powers of suppliers and bargaining powers of buyers. 8. What 2 forms does bargaining power come in? p.205 suppliers and buyers

9. This force addresses the question of how costly it is for the buyer to switch to your competitors. P.205 bargaining power of the buyer 10. What are the elements of the Six Force Model for the NE Era? p.206 rivalry among existing competitors, barriers to entry, threats of new entrants, threat of substitute products, and bargaining powers of suppliers and bargaining powers of buyers. 11. What are 5 basic steps in interaction between a firm and its customer (B2C) or Suppliers (B2B)? p.208 inquiry, order/sale, payment, delivery, and after-sales support. 12. What is competitive advantage? p.212 producing products and services that customers prefer to those of your competitors and thus, winning in the marketplace. 13. Competition can be viewed from a _____or ________perspective. p.212 internal, external 14. What are 2 theories that that describe why some firms are more profitable than others? p.213 resource-based view of the firm and firm capabilities (FC) theory. 15. Define a core competency. p. 215 knowledge that the organization has gained about its own processes that allows it to compete with the best in the world. 16. Most competitive advantages are _______. p.213 momentary 17. What are 3 effects in measuring NE strategic success? P. 220 alpha, beta, and gamma (omega) 18. What are 3 strategies that managers should take to dominate the relationship with customers in the NE World? p. 222 First there must be a commitment to collecting data about customers in spit of the costs incurred. Second, the firm needs NE systems that leverage this information by playing off of customer characteristic and preferences when the customer arrives at your web site. Third, customers can be sent information, or “pushed” information. 19. A strong statement about goals of the organization is called a ___________. p. 199 mission statement 20. Define a low cost/provider strategy? p.203 this strategy requires that firms constantly seek out and implement ways to reduce costs in order to offer pricing that is attractive to customers.

Chapter 8 1. Which is a component of a fully articulated business model? a. Mission b. Revenue model c. Marketing model d. Projected financial statements e. All of the above pg. 239

_________ give the organization direction, but lack the details of a planning document. a. Strategic statements pg. 239 b. Schematic view c. Investment statements d. Exit strategy e. Implementation plan

3. The ________ states how the firm anticipates deriving income from a venture a. Single point of contact model b. Shared infrastructure model c. Value net integrator model d. Revenue model pg. 239 e. Five forces model 4. Initiatives with respect to start-ups are typically called ________. a. New growth b. Intrapreneurship c. Entrepreneurship pg. 240 d. Risk centers e. Revenue centers 5. The _______ business model coordinates value net activities by gathering, synthesizing and distributing information. a. single point of contact b. shared infrastructure c. value net integrator pg. 241 d. revenue model e. five forces 6.

The _________ business model provides information, digital products and services via intermediaries. a. single point of contact

b. c. d. e.

shared infrastructure value net integrator revenue content provider pg. 241

7. The _______ business model brings together buyers and sellers by concentrating information such as search engines and auctions. a. intermediary pg. 241 b. single point of contact c. shared infrastructure d. content provider e. shared infrastructure 8.

The _________ business model facilitates and creates loyalty to an online community of people with a common interest enabling interaction and service provision. a. intermediary b. single point of contact c. shared infrastructure d. virtual community pg. 241 e. shared infrastructure

9. The __________ business model provides a firm-wide single point of contact consolidating all services provided by a large, multi-business organization. a. intermediary b. single point of contact pg. 241 c. shared infrastructure d. content provider e. shared infrastructure 10. The _________ business model brings together multiple competitors to cooperate by joining together efforts on common IT platforms. a. intermediary b. single point of contact c. shared infrastructure pg. 241 d. content provider e. shared infrastructure 11. The __________ business model provides goods or services directly to customers, often surpassing traditional channel players. a. direct to consumer pg. 241 b. single point of contact c. intermediary d. virtual community e. shared infrastructure

12. The _______ business model provides a full range of services in one domain directly and via complementors in attempting to own the primary customer relationship. a. single point of contact b. full service provider pg. 241 c. intermediary d. value net integrator e. shared infrastructure 13. What are key resources in atomic models? a. relationships, data, and transactions p. 242 b. relationships and data c. transaction and data d. data, relationships, and suppliers e. suppliers, buyers, and equipment 14. Another term for intermediaries with Web presences is __________. a. single point of contact b. cybermediaries pg. 248 c. full service provider d. virtual community e. shared infrastructure 15. Elements of a business model consist of a _______. a. marketing model b. projected financial statement c. exit strategy d. schematic view e. all of the above p.239 16. Diagrammatic views of the enterprise are meant to _______. a. show the implementation plan and timetable b. show how the firm relates to primary stakeholders p. 239 c. include methods that the firm will use to attract and retain customers d. enable strategic planning e. state how the firm anticipates deriving income from ventures. 17. What are the most valuable resources a firm can own? a. proprietary data p.242 b. relationships with the customers c. customers responses to the firm questions or questionnaires d. the transaction itself e. financial instruments 18. What is the least important resource a firm can own? a. proprietary data

b. relationships with the customers c. customers responses to the firm questions or questionnaires d. the transaction itself p.243 e. financial instruments 19. A ________ allows managers to configure and picture their business model in such a way as to maximize effectiveness. a. Diagrammatic b. schematic p. 243 c. revenue model d. implementation plan e. strategic plan 20. Which business model has only one resource? a. intermediary b. shared infrastructure c. value net integrator p.255 d. virtual community e. direct to consumer 21. The danger of the full service provider model is that customers will forsake the firm and make a ________ with the reseller, complementor, supplier, or competitor in subsequent transactions. a. direct connection pg. 247 b. vision c. open system d. closed system e. none of the above 22. The _________ includes the methods that the firm will use to attract and retain customers. a. Marketing model pg. 239 b. Revenue model c. Advertising model d. Global model e. Information model

23. A __________ is a management tool for making decisions. a. Business model pg. 240 b. End user system c. Node network d. Direct connection e. None of the above

24. The relationship with the customer, whether a consumer or business customer, is perhaps the most important ______________. a. risk b. long term resource pg. 241 c. short term resource d. liability e. integrator 25. Net enablement allows firms to establish direct links to their customer base and bypass _________. a. owners b. management c. financial systems d. intermediaries pg. 243 e. stockholders 26. An example of a content provider is ____________. a. CNN b. Ziff-Davis c. Wall Street Journal d. MSNBC e. all of the above pg. 244 27. An example of an intermediary is __________. a. E-bay b. Expedia c. Travelocity d. Excite e. All of the above pg. 242 28. __________ represent an organizational design that is unique to the Web and did not exist before the rapid diffusion of the Internet. a. single point of contact b. cybermediaries pg. 249 c. full service provider d. virtual community e. shared infrastructure 29. The concept of sharing of the ________ is to create a single cyber-market in order to create benefits for the owners. a. security b. customers c. IT platforms pg. 252 d. business plan e. point of contact

Chapter 8 True/False 1.

Entrepreneurs use business models to propose their ideas to venture capitalist and they are fairly extensive expressions of ideas. T. p. 237

The mission and other strategic statements are the high level positions that are part of the strategy. T. p. 239

The revenue model is meant to show how the firm relates primarily to stakeholders. F. p. 239

An important part of the business model are prospects for profitability. T. p. 239

Business models are considered to be atomic and combinable into hybrids. T. p. 240

Proprietary data is one of the least valuable resources a firm can own. F. p. 242

The transaction itself is the most important resource. F. p. 243

The most important long-term resource is the relationship with the customer. T. p. 241

Schematics allow managers to configure their business models in such a way as to maximize effectiveness. T. p. 243

10.

Content providers were one of the earliest users of the Web. T. p. 244

11.

Some content providers provide partial access through the public Web site and subscriber access through their extranet. T. p. 244

12.

When a firm is a single point contact, it typically has a relationship with a complementor who has a relationship with the customer. F. p. 244

13.

The revenue model for content providers is simply the fees it charges the complementor. T. p. 244

14.

Content providers are in a strong competitive position. F. p. 245

15.

Managers should be extremely suspicious of content provision as a revenue source. T. p. 245

16.

The concept of a Full Service Provider is to deal with as many needs of the customer as possible in one important area of their lives. T. p.247

17.

Intermediary business models are common in traditional physical systems as well as cyber systems. T. p.247

18.

Value Net Integrators take advantage of their central position on the Internet between suppliers, complementors, and ultimate customers. T. p.253

19.

Suppliers or providers support their virtual communities financially either for commissions, referral fees, or because they are appendage of the business itself. T. p. 256

20.

Single Point of Contact is a model that gives entry to an entire cornucopia of offering or services. T. p. 257

Chapter 8 1. ________views of enterprise are meant to show how the firm relates to primary stakeholder. p. 239 diagrammatic 2. What model includes the methods that the firm will use to attract and retain customers? p. 239 Marketing model 3. What model includes the revenue model, which states how the firm anticipates deriving income from ventures? p. 239 Submodels 4. What are the 8 business models? p. 241 content provider, direct-to-consumer, full service provider, intermediary, shared infrastructure, value net integrator, virtual community, and single point of contact. 5. ________allows firms to establish direct links to their customer base and bypass intermediaries. P. 243 Direct-to-Customer atomic model 6. What is the importance of choosing the business model? p. 242 It allows you to own the relationship with the customer, the data, and the transaction. 7. What is the purpose of schematics? p. 243 It allows managers to configure their business models in such a way as to maximize effectiveness 8. Who were the earliest users of the Web? p. 244 Content providers 9. The _________ for content providers is simply the fees it charges the complementor. p. 244 revenue model 10. ________ have no direct connection with the ultimate customer, they do not own the relationship, the transaction or the data. p. 245 Content providers

11. Unless their content is unique, a _______can drive costs down by playing one content provider off against the other. p. 245 complementor 12. _______ are not in a strong competitive position. p. 245 Content providers 13. The model that allows a firm to interact electronically with customers? p.245 direct-to-customer 14. What 3 models type that owns and controls all three resources? p.242 directto-customer, full service provider, and single point of contact. 15. The model that has not completely emerged in the marketplace, yet, although there are definite signs that it will continue to develop is the _______ p. 247 full service provider 16. Entities (or member) which share a site for their mutual benefit are ______? p. 250 Shared infrastructures 17. A model that gives entry to an entire cornucopia of offering or services is the _________ model. p. 257 single point of contact 18. What model brings together buyers and sellers by concentrating on information? p. 241 the intermediary model 19. What is a virtual community? p. 241 An atomic model that facilitates and creates loyalty to an online community of people with common interests enabling interaction and service provisions. 20. What are the resources that are involved in a single point of contact? p. 242 relationship, data, and transactions

Chapter 9 1. _____________ is any business process that lies between the end points on a value chain. a. intermediation pg. 269 b. mediation c. supply chain management d. dis-intermediation e. reintermediation

2. __________ are entities who serve a market role by bringing together multiple buyers and sellers. a. buyers b. sellers c. strategists d. resource centers e. intermediators pg. 269 3. The essence of intermediation is that the intermediary very often has a(n) ___________. a. market role b. virtual unit c. information based service pg. 270 d. product-based service e. strategic limit 4. _________intermediaries are purely information based and do not own the products and services they resell. a. Virtual pg. 270 b. Aggregator c. Subsequent d. Entity e. Market 5. _________ intermediaries may own, but do not produce or assemble goods and services and use information to match buyers and sellers. a. Virtual b. Aggregator pg. 270 c. Subsequent d. Entity e. Market 6. A(n) __________ structure gives insurance carriers direct access to the ultimate consumer. a. channel conflict

b. c. d. e.

independent agent captive agent pg. 271 intermediary cyber

7. A(n) _____ structure places intermediaries in the value chain between the carrier and the ultimate consumer. a. Channel conflict b. Independent agent pg. 271 c. Captive agent d. Intermediary e. Cyber 8. ______________ is breaking off with intermediators. a. Cyber-mediation b. Re-intermediation c. Layering d. Dis-intermediation pg. 271 e. None of the above 9. Breaking with intermediaries that have supported them in the past is called _______ a. a captive agent problem b. an independent agent problem c. channel conflict pg. 271 d. retroaction e. retribution 10. _______ is reintroducing a mediation into the value chain.. a. Cyber-mediation b. Re-intermediation pg. 271 c. Layering d. Dis-intermediation e. Con-intermediation 11. ______ is forming a virtual unit to serve as a we presence. a. Cyber-mediation pg. 271 b. Re-intermediation c. Layering d. Dis-intermediation e. None of the above 12. __________ is the action of firms to reinsert themselves electronically into the value chain in place of brokers or agents. a. Cyber-mediation b. Re-intermediation pg. 271 c. Layering

d. Dis-intermediation e. Con-intermediation 13. What are supplemental intermediaries? a. reintroducing a mediation into the value chain b. organizations that use the Internet to reinforce existing channels and become their own intermediaries. p.274 c. organizations that offer services that customers valued because costs are lower. d. entities who serve a market role by bringing together multiple buyers and sellers e. organizations that provide full service to organizations 14. Intermediaries whose value added are challenged by post Internet possibilities are called ____________. a. cybermediaries b. supplemented intermediaries c. threatened intermediaries pg. 275 d. electronic intermediaries e. traditional intermediaries 15. Firms which insert themselves in the value chain and make the indirect costs less expensive than the direct costs are called _________. a. cybermediaries pg. 276 b. supplemented intermediaries c. threatened intermediaries d. electronic intermediaries e. traditional intermediaries 16. _________ are those traditional organizations that take on the role of intermediaries via the Internet themselves. a. Cybermediaries b. Supplemented intermediaries pg. 276 c. Threatened intermediaries d. Electronic intermediaries e. Traditional intermediaries 17. Search efficiencies and information management are intermediary role characteristics of the ________ model. a. Intermediary pg. 278 b. Shared infrastructure c. Value Net Integrator d. Full Service provider e. Virtual community

18. Aggregating demand and negotiating prices is an intermediary role characteristic of the ___________ model. a. Intermediary b. Shared infrastructure pg. 279 c. Value Net Integrator d. Full Service provider e. Virtual community 19. Information management, routinizing, and guarantying transactions are intermediary role characteristics of the ________ model. a. Intermediary b. Shared infrastructure pg. 278 c. Value Net Integrator d. Full Service provider e. Virtual community 20. _________ require knowledge of how to procure items and services and create a trading floor for buyers and sellers. a. Search efficiencies and information management pg. 277 b. Routinizing and guarantying transactions c. Logistics d. Aggregating demand/negotiating prices e. Creating packages. 21. _____handle complex transactions and insure payments and shipments. a. Search efficiencies and information management b. Routinizing and guarantying transactions pg. 277 c. Logistics d. Aggregating demand/negotiating prices e. Creating packages. 22. Delivery of goods, locally or globally is known as ________. a. Search efficiencies and information management b. Routinizing and guarantying transactions c. Logistics pg. 277 d. Aggregating demand/negotiating prices e. Creating packages. 23. Organizations which gather together orders and negotiate for clients on prices are ______________. a. Search efficiencies and information management b. Routinizing and guarantying transactions c. Logistics d. Aggregating demand/negotiating prices pg. 277 e. Creating packages.

24. Organizations which break bulk through large volume purchases and reassemble into packages are __________. a. Search efficiencies and information management b. Routinizing and guarantying transactions c. Logistics d. Aggregating demand/negotiating prices e. Creating packages. pg. 277 25. ___________ are a pure information management function and are highly virtual in their organizational design. a. Value net integrators pg. 279 b. Full service providers c. Direct to consumer d. Single point of contact e. Virtual firms 26. If an intermediary can offer _______ to other entities in the value chain, then they will survive. a. Security b. Customer service c. Competitive advantage d. Economies of scale pg. 277 e. None of the above 27. ___________ fulfill a valuable function when they know more about markets than most buyers and sellers and they are compensated for this knowledge. a. Intermediaries pg. 278 b. Management roles c. Cost centers d. Resource centers e. Logistic commands 28. When a firm ensures that there is no defaulting on either end of the buying channel it is called __________. a. Competitive advantage b. Economies of scale c. Securitizing the transaction pg. 278 d. Insurance e. Negotiating 29. A ____________ offer customers a one-stop service with multiple and competing providers. a. Intermediary b. Shared infrastructure c. Value Net Integrator d. Full Service provider pg. 280

e. Virtual community 30. __________ firms provide online tracking services so that customers can monitor the processing and delivery of their orders. a. Search efficiencies and information management b. Routinizing and guarantying transactions c. Logistics pg. 278 d. Aggregating demand/negotiating prices e. Creating packages

Chapter 9 True/False 1. Virtual types of intermediaries may own, but do not produce or assemble goods and services, they use the information to match buyers and sellers. F. p. 270 2. An independent agent structure places intermediaries in the value chain between the carrier and the ultimate consumer. T. p. 271 3. Reintroducing mediation into the value chain is called reintermediation. T p. 271 4. Reintermediation is the action of firms to reinsert themselves electronically into the value chain in place of their own brokers or agents. T. p. 272 5. In virtual organizations, direct costs are higher than indirect costs (which would favor traditional intermediaries) because firms are using the Internet to drive down the transaction costs. T. p. 276 6. Supplemented intermediaries are those organizations that assume the role of intermediaries themselves. T. p. 276 7. The more complex the transaction, the more capable are current systems to handle the task. F. p. 277 8. Cybermediaries are able to handle transactions that travel agents can no longer afford to conduct, such as low frequency, complex transactions. T. p. 277 9. Logistics gather together orders and negotiate with clients on prices. F. p. 277 10. The role of search efficiencies and information management is to handle complex transactions and insure payments and shipments. F. p. 277 11. Intermediaries fulfill a valuable function when they know more about markets than most buyers and sellers and they are compensated for this knowledge. T. p.278

12. Delivery of goods has been a major value-added capability of intermediaries. T p.278 13. Scrutinizing the transaction is when firms ensure that there is no default at either end of the buying channel. T. p.278 14. The concept of intermediation in this chapter is closely related to intermediaries and intermediation in the traditional bricks and mortar world. T. p. 279 15. In the Weil & Vitale conception of atomic models, the intermediary role characteristic of shared infrastructure is aggregating demand and negotiating prices. T. p.279 16. Value Net Integrators are a pure information management function and are highly virtual in their organizational design. T. p.279 17. Full Service Providers can be highly virtual, especially if they do not own inventory and if they are in information-intensive businesses like financial services. T. p.280 18. In the common usage, the term “intermediators” has a more restricted sense of being entities that serve a market role by bringing together multiple buyers and sellers. T. p.270 19. The essence of intermediation is that the intermediary often has an informationbased service. T. p.270 20. Virtual intermediaries do not own the products and services they resell. T. p.270

Chapter 9 1. What are 2 major types of intermediaries? P.270 virtuals and aggregators 2. What is disintermediation? P. 271 breaking off with intermediators 3. What is reintermediation? P.271 reintroducing a cybermediation into the value chain 4. What is cybermediation? P.271 forming a virtual unit to serve as a Web presence and serving an intermediary role 5. What is a captive agent? P. 271 gives a firm direct access to the ultimate customer.

6. Organizations that use the Internet to reinforce existing channels and become their own intermediaries are called what? p.274 supplemented intermediaries 7. Before the Internet, these organizations offered services that customers valued because the costs were lower for customers. p. 276 threatened intermediaries 8. The role of the intermediary in _______is to break bulk through large volume purchases, and reassemble them into packages. p.277 creating packages 9. The role of ______ is to deliver goods, locally or globally. p. 277 logistics 10. The role of ________is to use knowledge of how to procure items and services. P. 277 search efficiencies and information management 11. The role of _______is to handle complex transactions. p. 277 routinizing and guarantying transactions. 12. The role of _________gathers together orders and negotiates for client(s) on prices? p.277 aggregating demand/negotiating prices 13. According to the Weill & Vitale Atomic Model conception, what is the role of a Full Service Provider? p. 279 their role is creating packages and logistics 14. According to Weill & Vitale Atomic Model, what is the role of an intermediary model? p. 279 search efficiencies and information management 15. Define channel conflict. p. 271 when there is conflict in marketing channels with intermediaries that have supported them in the past. 16. Define an aggregator intermediary. p. 270 they may own, but do not produce or assemble goods and services. They use information to match buyers and sellers. 17. Define a virtual intermediary. p. 270 they are purely-information based; do not own the products and services they resell 18. The action of firms to reinsert themselves into the value chain in place of their own brokers or agents is ________ p. 270 re-intermediation 19. What is an independent agent? p. 271 places intermediaries in the value chain between the carrier and the ultimate consumer.

20. The role of ________ is to handle complex transaction sand ensure payment and shipments? p. 277 routinizing and guarantying transactions.

Chapter 10 1. Firms that focus extensively on informational processes and minimize their engagement with physical processes are known as ________ firms. a. Cyber b. Web c. Click through d. Virtual pg. 293 e. Physical 2. Virtual firms are those that a. transfer noncore physical processes to contractual or informal arrangements b. move away from co-location of assets c. are highly decentralized d. substitute electronic connections for physical processes e. all of the above pg. 293 3. Which of the following are characteristics of a bricks and mortar physical organizational design? a. Focuses on physical processes as core competencies b. Requires raw materials; machine tools; funds for investment in physical assets, facilities; coordination and control systems and technical and managerial skill sets c. Decreasing returns to scale; lack of HR flexibility; slow movement into new businesses d. Requires lower skill levels as percentage of employee base. e. All of the above pg. 296 4. Which of the following are characteristics of a clicks virtual organizational design. a. Focus on informational processes as core competencies b. Requires coordination and control systems, technical and managerial skill sets, funds for investment in human assets c. Lack of business history or experience with this organizational design; branding issues; requires higher skill levels; loss of intellectual capital can be devastating d. Can lead to higher margins from increasing returns to scale; HR flexibility; rapid movement into new businesses e. All of the above pg. 296 5. In an arm’s length transaction, the firms involved are interested in ____mutual benefits of the exchange. a. short-term p. 299

b. long-term c. moderate d. cooperative e. the firm is not interested in a mutual benefit of exchange 6. The central position on the partnership continuum is a(n) _______? a. informal alliance b. strategic alliance p. 299 c. external outsourcing d. equity position e. joint ventures 7. Measures that a manager can take with respect to performance are called _______ controls. a. outcome pg. 301 b. coordination c. metric d. process e. sufficient

8. _______ are day-to-day task assignments and oversight exercised by operational level management. a. Outcome controls b. Coordination controls c. Metric controls d. Process controls pg. 301 e. Sufficient controls 9. Which of the following are reasons for sourcing outside the organization? a. The activity under question does not concern strategic assets of the company, nor is it a core competency b. The cost to go outside is considerably less than doing it internally c. There will be an increased flexibility in personnel since the services can be acquired as needed; costs move from being fixed to being variable d. Other organizations are outsourcing this function and this encourages the firm to follow suite e. All of the above pg. 302

10. The best reason to __________ a process is to allow the firm to focus more on what it is really good at. a. outsource pg. 303 b. insource c. remove d. increase e. factor

11. The strongest predictor of whether or not a firm will outsource is _______ a. trust b. dominance c. costs pg. 305 d. complexity e. size 12. Which of the following are sample transaction costs? a. Evaluating bids b. Travel expenses for user sites c. Management reviewing and decision time d. Preparing and negotiating contracts e. All of the above pg. 305 13. __________ means that the firm hires others to undertake certain functions for it while retaining the strategic assets it needs to compete. a. Information visibility b. Game theory c. Agency theory d. Selective outsourcing pg. 306 e. Streamlining

14. When firms join in through some sort of spirit of revelry it is known as the ______. a. Hawthorne effect b. bandwagon effect pg. 19 c. Dopler effect d. Hirscheim effect e. Net effect 15. A(n) ________ asks how long it takes for benefits from the investment to offset the upfront costs? a. internal rate of return b. accounting rate of return c. net present value d. payback analysis p.309 e. internal investment 16. The _______ considers account costs beyond the first year and even the depreciation of the asset. a. internal rate of return b. accounting rate of return p.310 c. net present value d. payback analysis e. internal investment 17. ________ involves simple calculations of the total benefits divided by total costs.

a. b. c. d. e.

Payback analysis Net present value Cost-benefit ratio pg. 310 ROI Internal rate of return

18. The time-discounted value of net cash flows is called _____. a. payback analysis b. net present value pg. 311 c. cost-benefit ratio d. ROI e. internal rate of return 19. __________ is the present value divided by the first year investment. a. Payback analysis b. Net present value c. Cost-benefit ratio d. Profitability index pg. 311 e. Internal rate of return 20. The __________ is the interest rate that will equate the present value of the future cash flows with the 1st year investment. a. Payback analysis b. Net present value c. Cost-benefit ratio d. ROI e. Internal rate of return pg. 311 21. Which reason for sourcing activities in the organization is based on a nonintellectual approach to management? a. achieving strategic focus b. staff flexibility c. cost savings d. imitation p. 307 e. information visibility 22. The concept of sharing information between complementors and supplementors in cyberspace is known as _________. a. information visibility pg. 320 b. game theory c. agency theory d. selective sourcing e. staff flexibility 23. ________ says that when parties compete, the system as a whole may end up with suboptimal results whereas benefits will be optimal with cooperation.

a. b. c. d. e.

Information visibility Game theory p. 323 Agency theory Selective sourcing Staff flexibility

24. __________ says that the principals or parties hiring an agent need to monitor the other party to prevent that party from taking advantage. a. Information visibility b. Game theory c. Agency theory p.324 d. Selective sourcing e. Staff flexibility 25. In order for the principal to be sure that the agent is exercising process control, the principal must incur what type of costs? a. Monitoring b. Bonding c. Depreciation d. Both A and B p. 324 e. None of the Above 26. What is the glue that binds networks together and present contents that make it worthwhile for stakeholders to deal with NEOs? a. software p.314 b. hardware c. the web site d. networks e. channels 27. As products and/or services move up the value chain from supplier to the firm, to the customer, the process will be more efficient and more effective if there is a concerted effort by the parties to ___________. a. advertise b. share information pg. 320 c. relocate d. vertically integrate e. horizontally integrate 28. The ________ is basic and critical in information visibility scenarios. a. vendor client relationship pg. 322 b. go/no go decision c. payment option d. logistics and provision of products e. None of the above 29. Why would a firm engage in a cooperative venture with its rival? a. To make money for shareholders

b. c. d. e.

To prosper for general social good To benefit the industry To benefit the supplier industries All of the above. Pg. 319

30. If both a vendor and a client share information, they together ____ the overall benefits in the system. a. Maximize pg. 323 b. Minimize c. Eliminate d. Terminate e. Regulate

Chapter 10 True/False 1. Firms that focus extensively on information processing and minimize their engagement with physical processes are known as virtual firms. T. p.293 2. Firms that are higher on the food chain require more physical resources to survive. F. p. 293 3. The stronger and healthier the lower parts of the food chain, the healthier and stronger the higher parts of the food chain. T. p.294 4. Physical processes in a business tends to be labor and capital intensive, requiring large quantities of raw materials. T. p.294 5. Firms somewhere in the middle of the corporate food chain have an organizational design that is completely physical in its orientation. F. p.294 6. Virtual organizations are bonded together through electronic connections. T. p.296

7. Physical organizational designs are compared to and contrasted with virtual designs. T. p.296 8. The focus on physical assets means that there is a huge capital investment involved, and therefore is not readily moved into a new business production. T. p.296 9. Physical design focuses on informational processes as core competencies. F. p.296 10. The strength of a virtual design is that it requires lower skill levels as percentage of employee base. F. p.296 11. Another term for virtual design is a clicks organization. T. p.296 12. E-commerce allows firms to promote telework. T. p.297 13. Disintermediation of traditional intermediaries is a natural outgrowth of NE. T. p.297 14. In arms length transaction, the firms involved are interested in the long-term mutual beneficiaries of the exchange. F. p.299 15. Physical integration of firms is the same as virtualizing the organization. F. p.299 16. The central position of the partnership continuum is the strategic alliance. T p.299 17. Selective outsourcing means that the firm hires others to undertake certain functions for it while retaining the strategic assets it needs to compete. T. p.306 18. Of the four reasons that undergird a move to the marketplace, staff flexibility is the worst reason. F. p.307 19. Cost-benefit analysis is a quantitative technique that is helpful in analyzing a decision from a financial standpoint. T. p.308 20. The concept of sharing information between complementors and supplementors in cyberspace is known as information visibility. T. P.320

Chapter 10 1. Name 6 main resources in a physical design. P.296 raw materials, machine tools, funds for investment in physical assets, facilities, coordination and control systems, and technical and managerial skill sets.

2. What are 3 main resources in a virtual design? P. 296 coordination and control systems, technical and managerial skill sets, and funds for investment in human assets. 3. What are 2 forms of control that firms retain when they outsource? P. 301 outcome and process 4. What are the 4 basic reasons for sourcing outside the organization? P. 303 achieving strategic focus, cost savings, staff flexibility, and imitation. 5. _________ is when firms hire others to undertake certain functions for it while retaining the strategic assets it needs to compete. P. 306 selective outsourcing 6. Of the four reasons that undergird a move to the marketplace, the worst reason is ________. P 307. imitation 7. Cost benefit analysis that takes into account cash flows beyond the first year and depreciation of the assets is called _______. p. 310 return on investment 8. What is a cost-benefit ratio? P. 310 Total Benefits/Total Costs 9. What is payback? p. 310 1st year investment/ annual net cash flow 10. What is the profitability index? P. 311 present value/ 1st year investment 11. What 2 elements of the value chain should firms consider for outsourcing? P. 318 logistics and provision 12. What are 2 important observations that you should make before moving off the subject of co-opetition? P. 320 NEOS are particularly receptive to the virtues of strategic alliances since they are inclined to be virtual organization anyhow. Alliances with rivals allow a firm to reduce process control on the supply chain. The second observation is that forming an alliance with a competitor can be a dangerous proposition. 13. Define information visibility. P. 321 the concept of sharing information between complementors and supplementors in cyberspace 14. What is game theory? P. 323 it says when parties compete, the system as a whole may end up with suboptimal results whereas benefits will be optimal with cooperation. 15. The theory that says that principals or parties hiring an agent need to monitor the other party to prevent the party from taking advantage is called

________? P. 324 agency theory 16. In order for the principal to be sure that the agent is exercising process control, the principal must incur? P. 324 monitoring and/or bonding costs 17. Measures that a manager can take with respect to performance are called _______. P. 301 outcome controls 18. Day to day task assignments and oversight exercised by operational level management is called _________. p. 301 process controls 19. If the argument for retaining core competencies and outsourcing noncore competencies for a firm is accepted, the firm will be more often engaged in what? P. 301 selective outsourcing 20. What are some examples of transaction cost? P. 305 preparing RFPs, evaluating bids, travel expenses for user sites, management reviewing and decision times, preparing and negotiating contracts, insuring or bonding against contractor nonperformance, and ongoing monitoring of work of the complementor.

Chapter 11 1. Resolution of ___________ is one of the most important aspects of e-Marketing. a. channel conflict pg. 335 b. customer complaints c. network conflicts d. system conflicts e. web conflicts 2. Which of the following are unique capabilities of the Internet for e-Marketing? a. online auctions b. web exchanges c. new communications media d. peer-to-peer communications e. All of the above pg. 335 3. The online exchanges favor ________ over sole sourcing. a. outsourcing b. insourcing c. multisourcing pg. 337 d. resourcing e. networking 4. ________ offered through Internet technologies affect nearly all marketing channels. a. Subscriptions b. Media enhancements pg. 337 c. Software d. Hardware e. Agreements 5. Broadcasts of live or nearly live action over the Internet is called ______. a. invasion of privacy b. video streaming pg. 338 c. real action d. spy-cam e. video parsing 6. _______ technology allows entities to exchange data directly, without the intervention or control of third party Web server sites. a. Peer-to-peer pg. 339 b. Peer-to-network c. Network-to-peripheal d. Network-to-terminal e. Control free

7. One of the most obvious and dramatic characteristics of publicly accessible Internet Web-sites is that they are _________ accessible. a. globally pg. 339 b. locally c. nationally d. regionally e. None of the above 8. The most profitable way of programming the Web to treat customers as individuals is by a. using experts to collect data b. collecting data through surveys c. buying data from other firms d. hiring part-time workers to gather information about customers e. exploiting customer data that the organization already owns. pg. 342 9. __________ are traditionally divided into business-to-business versus businessto-consumer channels. a. Organizations b. IS departments c. Marketing channels pg. 343 d. Channel conflicts e. Operations 10. B2B is sometimes referred to as _____________ a. commercial domains b. commercial purchasing pg. 343 c. commercial planning d. commercial analysis e. commercial development 11. _________ relationships tend to be higher in volume and less cash-driven. a. B2B pg. 343 b. B2C c. C2C d. B2NE e. NE2B 12. __________ can typically be manufacturers of products and/or service providers or they can be involved in value-added activities such as component assemblers. a. Customers b. Regulators c. Management d. Inspectors e. Suppliers pg. 344

13. Channel partners who are contributing directly to the movement of goods and services from end-to-end along the chain are said to be part of the _________. a. network b. chain gang c. supply surplus d. supply chain pg. 345 e. All of the above 14. Customers value your product/service more when they also have access to that of the _______. a. competitor b. complementor pg. 346 c. suggestor d. guarantor e. registrar 15. Customers value your product/service less when they also have access to that of the _______. a. competitor pg. 346 b. complementor c. suggestor d. guarantor e. registrar 16. The ability of a NEO to gather more and varied __________than competitors is mission-critical. a. customers b. information pg. 346 c. products d. services e. benefits 17. Creating ________ that did not exist before is protected by copyright laws in many countries like the U.S. a. graphics b. information composites c. manuscripts d. recordings e. All of the above pg. 347 18. ________ combine data from numerous sources into a single repository that can be utilized to address management issues and questions. a. Data mines b. Focus groups c. Storage units d. Data warehouses pg. 350

e. Data dumps 19. ________ software is a set of tools that allows managers to view data in new ways. a. Data mining pg. 350 b. Focus group c. Storage unit d. Data warehouse e. Data dump 20. _______ software typically has graphical display capabilities as well as a set of pre-set reports and the ability to save “ad hoc” reports so they can be readily reused at a later time. a. Data mining pg. 350 b. Focus groups c. Storage unit d. Data warehouse e. Data dump 21. The web has been called the largest marketing ______ in history. a. mistake b. mystery c. maze d. loss e. focus group pg. 352 22. The _____ are business exchanges that bring together multifarious sellers and buyers. a. net hubs b. Internet cafes c. electronic trading networks pg. 352 d. Internet networks e. All of the above 23. If products can be purchased online with ordering, settlement, and delivery arranged electronically, the supply chain becomes _____. a. seamless pg.353 b. reliable c. automatic d. error free e. virus resistant 24. Sharing information about forecasts, strategy and future needs between partners is called ____________. a. information forecasting b. information stocking

c. information strategy d. information visibility pg.355 25. ________ networks create flexibility by inducing dual sourcing and multisourcing arrangements. a. Buying pg.356 b. Selling c. Co-op d. Dual e. Firm 26. Typically, __________ occur when a firm is able to substitute information for one of the value-added traditional links in the chain. a. chaos b. channel conflicts pg.357 c. uncertainty d. resistance e. All of the above 27. Trust, security and privacy are major areas for motivating online ______ sales. a. B2C pg. 363 b. B2B c. C2C d. Net2B e. Net2c 28. Which of the following are an advantage of displaying goods and services thru multimedia? a. Rapid, program-initiated algorithms can maximize margins on given items b. Offerings can be made as attractive as possible thru stimulation of different visual and aural senses pg. 364 c. Customers may choose to shop where there is immediate availability d. Customers may be frustrated by changes in online pricing between visits e. Transactional data and clickstream data are automatically collected. 29. __________________ are Web applications that accept general preference information from individuals and then try to match these interests with products or services. a. Recommender systems pg. 367 b. Configuration systems c. Cooperation systems d. Referral systems e. Assessment systems 30. ______ personalize by offering customers their choices of features on products or complementary products.

a. b. c. d. e.

Recommender systems Configuration engines pg. 368 Cooperation systems Referral systems Assessment systems

Chapter 11 True/False 1. Channel conflict is a critical issue in marketing because channels need to complement each other whenever possible. T. p.334 2. Linking of strategy and marketing is a natural linkage. T. p.334 3. Resolution of channel conflict is an important aspect of e-marketing. F. p.335 4. Online exchange can theoretically reach a global market at a fraction of the costs involved in bringing together such buyers in the physical world. T. p.336 5. Live chat enables sales reps to “talk” via text with customers in real time. T. p.337 6. B2B relationships tend to be lower in the volume and less cash-driven. F. p.343 7. A vertical perspective broadens the base of entities with which a firm needs to work. F p.345 8. Net-enhanced organizations are learning to work effectively with a wide range of stakeholders and partners. T. p.345 9. Traditionally, data is thought of as raw signals emerging from the environment. T. p.346 10. Customers value your product/service less when they also have access to that of the competitor. T. pg. 346 11. Customers value your product/service more when they also have access to that of the complementor. T. P.346 12. Information serves to reduce uncertainty about the threats to the firm and to give insight into new opportunities to pursue. T. p.346 13. Three technologies that are being heavily used in networked enterprises are database marketing, data mining, and data warehousing. T. P.346

14. Firms can also combine external data acquired through third party sources with their international data. T. p.348 15. The data that relates to the entire online transaction is known as downloads. F. p.349 16. Data warehousing is a set of tools that allows managers to view data in new ways. F. p.350 17. Data mining software typically has graphical display capabilities us well as a set of pre-set reports and the ability to save “ad hoc” reports so they can be readily revised at a later time. T. p.350 18. To create information visibility in the supply chain, one-to-one auctions are being developed rather than buying networks. F p.355 19. Buying networks cannot create flexibility by inducing dual sourcing and multi-sourcing arrangements. F. p.357 20. Networks and chains are the same organizational design forms. F. p.361

QUESTIONS

1. In what ways will pricing at all levels of the supply chain change as a result of Net-Enhancement? Some are predicting that consumers will gain power in the cyber world. Others see equal or superior advantages for sellers. pg.335 2. Name three unique capabilities of the Internet for E-marketing. Broadcasting through Web cams and sharing of real time activities; peer-to-peer applications that allow individuals to share digital information without requiring a centralized database; new pricing models such as reverse auctions for expanding market opportunities pg. 336 3. What is the marketing challenge for online auctions?

Retaining user interest and liveliness of bidding pg. 336 4. Firms need _______ and ______ to reach out to its vertical and horizontal partners and customers.

Data and information pg. 346

5. What three technologies are being heavily used in networked enterprises? Data marketing, data mining, and data warehousing pg. 347

6. Define the term “clickstream”? Recording of information about the interactions between user and server pg. 349

7. Discuss the underlying objectives of data warehousing. Data warehousing is like a normal warehouse. It combines data from numerous sources into a single repository that can be utilized to address management issues and questions. pg. 350

8. Discuss the underlying objectives of data mining. Data mining is looking for patterns in underlying data. They can be automated or manually controlled. pg.350

9. When do channel conflicts typically occur? When the firm is able to substitute information for one of the value- added traditional links in the chain pg. 353

10. Why do we say that supply networks are more accurate descriptions of NE relationships among stakeholders? NEO’s are participating more in networks rather than simplistic supply chains. pg. 359

11. Name at least three manifestations of personalization that takes place in the web world? Tailored Offerings, Recommender Systems, and Configuration Engines pg. 367 12. Name three pro’s of a web storefront. Offerings can be made as attractive as possible thru stimulation of different visual and aural senses; inventory may appear even when there in none in stock; transactional data and clickstream data are automatically collected on each customer. pg. 365 13. Define Recommender Systems. They are web applications that accept general preferences information from individuals and then try to match these interests with products or services. pg.367

14. Define configuration engines. Configuration engines personalize by offering customers their choices of features on products or complementary products pg.369

15. What are two types of branding? e- Branding and spiral branding pg. 369

16. What can be done with data extracted from a clickstream? The data can be combined in a data warehouse with demograhic data, gathered from the firm’s internal customer information sources or purchased from third party vendors. pg. 370 17. _________ can predict which age groups and other such market segments are buying which products and combinations of products with details of past behavior and demographics Marketing research

pg. 371

18. __________ is taking advantage of the ability of a website to respond to a consumer in multiple ways

Interactive marketing

pg. 371

19. How can an effective interactive marketing channel be created? By carefully managing the relationship with customers through computer supported systems. pg. 372 20. How does pricing between and among Internet vendors differ from that of traditional physical businesses? If search costs are lower, then prices should theoretically also be lower.

pg.

373

Chapter 12 1. The planning process for implementation actually begins as part of _______ a. strategy pg. 385 b. the optimization process c. downsizing d. reorganization e. All of the above 2. ________ are the ability of the firm to utilize its resources to create value. a. flexibilities b. visions c. core competencies pg. 388 d. imprintation e. Brand developments 3. Which of the following are core competencies for the content provider model? a. Leadership in content field b. Handle content for multifarious forms of distribution c. Marketing expertise about content d. None of the above e. All of the above pg. 388 4. Which of the following is NOT a core competency of the direct-to-consumer model? a. Balance service completeness with customer volumes pg. 388 b. Forming supply chain strategic partnerships c. Use customer data to understand customer needs d. Marketing through allies e. Integrating online and offline customer processes 5. Which of the following is NOT a core competency of the full service provider model? a. Managing relationships with customers and other parties in the value network b. Understanding customer segments and matching firm abilities to deliver new offerings to these segments c. Coordinate a coalition of competitors pg. 388 d. Manage business complexities through IT infrastructure e. Develop brand 6. Which of the following are core competencies for the intermediary model? a. Collect and analyze information about products, prices, and markets b. Balance service completeness with customer volumes c. Analysis of customer data for positioning new services d. None of the above

e. All of the above pg. 388 7. Which of the following is NOT a core competency of the value net integrator model? a. Managing relationships with customers and other players b. Leadership to move NEO to whole-of-enterprise viewpoint pg. 389 c. Managing coordination of nodes by analyzing the information in the network d. Developing and managing the band e. Utilizing levels of influence rather than control mechanisms 8. Which of the following is NOT a stage of the implementation phase? a. Inquiry stage b. Comparison stage pg. 390 c. Order/sales stage d. Delivery stage e. Payment stage 9. The first stage in the implementation process is ________. a. Inquiry pg 389 b. Comparison stage c. Order/sales stage d. Delivery stage e. Payment stage 10. The _________ will have a major impact on the acceptability of online payment. a. economy b. government c. legal environment pg. 394 d. Internet e. Federal trade commission 11. The difficulty with application formats is that the entire customer network is likely not using the same _______. a. protocols pg. 16 b. passwords c. user name d. access provider e. None of the above 12. The area of research that studies what makes a good Web design and what makes a less effective design is known as _______. a. navigation b. efficiency c. usability pg. 399 d. effectiveness

e. comparative analysis 13. Which of the following are usabililty features that managers need to be aware of? a. Download delay b. Interactivity c. Responsiveness d. Ease of use e. All of the above pg; 401 14. The inclination of the target audience to absorb a certain number of _____ should govern the timing and frequency of unsolicited pushing to the customer. a. cookies b. pop-up windows pg. 401 c. data pointers d. subscriptions e. registrations 15. __________ are low for e-consumers in that they can just click on the next selection and they are connected to the next e-vendor. a. Transaction costs b. Switching costs pg. 402 c. Clicking costs d. E-costs e. Registration costs 16. The level of _____ to be incorporated into the web site is a managerial decision. a. hyperlinks b. storage c. design d. interactivity pg. 403 e. All of the above 17. Having a site that is ______ means that customers like the site, respond favorably to its form, images, and linking capabilities. a. Usable pg. 405 b. Free c. Full service d. Distributed e. Interactive 18. Web sites that strongly appeal to consumers and recognize the consumer as a past customer and to customize responses to that individual are creating and delivering to _______. a. single point of contact b. full service providers c. value integrated markets

d. distributed markets e. markets-of-one pg. 404 19. The concept of _________ is to make the customer feel that she or he is not integrating with a computer but with a salesperson who can make personal suggestions to the customer. a. personalization pg. 406 b. identification c. restoration d. specialization e. regulation 20. _______ needs to be up-to-date, complete, and to take advantage of multi-media capabilities. a. Brochures b. Flyers c. Databases d. Content pg. 407 e. None of the above 21. The two forms of maintenance of NE systems are ________. a. Go/No Go b. repairs and enhancement pg. 31 c. maintenance and update d. technical and social e. internal and external 22. A critical success factor for deploying systems rapidly in such a case is to use __________. a. case tools b. prototyping c. CAD d. critical design management e. rapid application development pg. 414 23. ________ give the firm the advantage of making information that is crucial to the internal operations of the firm widely available. a. Intranets pg. 414 b. Extranets c. Multinets d. Neonets e. Information nets 24. __________ argues that the implementation of strategy is what distinguishes some firms for long term competitive advantage a. Capability theory pg. 416

b. c. d. e.

Agency theory Transaction theory Change theory Chaos theory

25. The capability of end-users to directly control their own applications and computing methods has been defined as ________. a. usability b. engineering c. web programming d. web application development e. end-user computing pg. 416 26. ________ occurs in such situations when the central IT group reasserts its control over the IT resource and requires business units and departments to adhere to certain standards for hardware, for application development, and for security. a. Centralization pg. 417 b. Decentralization c. Distribution d. Application development e. None of the above 27. Which of the following groups are NOT involved in the EUC phenomenon a. Nonprogramming end-users b. Application end-users c. Operating end-users pg. 417 d. Programming level end-users e. End-user programmers 28. For an effective _____ effort, a balance of centralization and decentralizaton was needed to promote and contain EUC. a. EUC pg. 37 b. B2B c. B2C d. I2 e. None of the above 29. An uncontrolled spreading of computing in the organization is called a _________. a. viral infection b. worm infestation c. computer illness d. contagion pg. 417 e. melanoma

30. __________ occurs far too often with the result that the opportunity for critical innovation is lost as managers struggle with their strategic positioning or fail to recognize the need to change strategy over time. a. Bankruptcy b. Hostile takeover c. Loss of motivation d. Investment loss e. Ineffective NE management pg. 418

Chapter 12 True/False 1. Careful strategizing can create stupendous opportunities for NEOs to gain competitive advantages over their rivals. T. p.384 2. Domain navigation is one of the explicit charges for a business strategy. T. p.384 3. Core competencies are the ability of the firm to utilize its resources to create value. T. p.388 4. Voice-only call centers are more efficient operations than monitoring live chat and e-mail. F. p.392 5. Editorials in the trade press have taken the position that legal solutions are the best strategy for deployment of digital goods and services. F. p.393 6. All firms have electronic payment core competencies. F. p.394 7. A healthy credit card setting for online purchasing is one in which holders of cards are protected by law against unlimited charges, fraudulent or not, against the card. T. p.394 8. Information is the symbolic form of objects in the real world. T. p.398 9. Physical representation is more important than information. F. p.398 10. The usability characteristics of “Emotion” are not related to the promotional ability of the Web Site. F. p.400 11. Switching costs are lower for e-commerce because consumers can just click on another entry and they are connected to the next e-vendor. T. p.402 12. Research has discovered that there is a strong casual connection between users being frustrated by long download times and their attributes towards brands

and inclination to purchase. T. p.403 13. Marketing-to-one is a philosophical orientation that all firms have adopted. F. p.406 14. Competitive parity for a web site may be a good strategic choice for the long term. F. p.410 15. Enhancements are the same as repairs. F. p.412 16. Development of Intranets and Extranets are unrelated. F. p.413 17. E-mail is the most natural entry point for a start-up firm. T. p.414 18. Intranets give the firm the advantage of making information that is crucial to the internal operations of the firm widely available. T. p.414 19. Capability theory argues that implementation of strategy is what distinguishes competitive advantage. T. p.416 20. The goal of effective management is to promote NE as a dynamic force for change in the organization without chocking it or permitting it to grow in an uncontrolled fashion. T. p.418

Questions 1. What is domain navigation? P.385 is one of the explicit charges for a business strategy and this addresses the issue of how strategy should be executed. 2. What are three core competencies of the content provider model? Leadership in content field; handle content for multifarious forms of distribution;marketing expertise about content pg. 388 3. What are the stages of deploying net-enhanced systems throughout the value chain? P. 389 inquiry stage, after-sales support stage, order/sales stage, and delivery stage. 4. What is a XML? P. 395 A tagged language that extends HTML. It permits more flexible data fields in that the definitions of the data are included within the web page. 5. ________ standards may assume a prominent place in the exchange of data between firms and promote the evolution toward EDI transaction being conducted over the web? P. 395 open buying internet or OBI standards

6. EDI typically transmits over proprietary networks such as ______? P. 396 VANs (value-added networks) 7. Define distinguishing characteristics of an EDI integrated network? P. 397 EDI typically transmits over proprietary networks such as VANs, which are simply enhanced forms of common carrier data communications services. 8. The area of research which studies what makes a good web design and what makes a less effective design is known as ______? P. 399 usability 9. Web sites that wish to strongly appeal to consumers will also need to implement systems that recognize the consumers as a past consumer and to customize responses to that individual is known as creating a delivering to _________. P. 405 markets-of one 10. Define the concept of personalization? P. 407 is to make the customer feel that s/he is not interacting with a computer but with a salesperson who can make personal suggestions to the customer. 11. What are 2 forms that maintenance of NE systems takes on? P. 411 repairs and enhancement 12. What is a dead system? P.411 it means that it no longer meets the needs of the users 13. Define the main tenet of capability theory? P. 416 implementation of strategy is what distinguishes some firms for long term competitive advantage. 14. Define end-user computing (EUC)? P. 417 the capability of end-users to directly control their own applications and computing methods 15. When does centralization occur? P. 417 in such situation when the central IT group reasserts its control over the IT resource and requires business units and departments to adhere to certain standards for hardware, for application development, for security, and the like. 16. What are the core competencies a firm must have to implement easy to navigate sites? p. 402 Web designers with an understanding of simple, clean pages and intuitive appreciation of what the sites has to offer and what the hyperlinks mean are clearly crucial. Market researchers with a grasp of how customers in the market segment think about firms’ offerings and are likely to respond to future offerings are another helpful group. 17. What doe the term “refinement” means? p. 402 It means making recent trends or offerings more prominent on the web.

18. What are the 3 core competencies of a virtual community? P.388 building a sense of community, sourcing or creating attractive content that is not expensive, and discovering member needs. 19. In the after-sales support stage, what does economic theory indicate? P.389 it indicates that firms can differentiate themselves from their competitors by gaining more information about customers and exploiting that information. 20. What needs to have either a real “social” or human presence or least the perception of a social presence so that customers are inclined to buy online? P.403 web channel

Chapter 13 1. Which of the following are technical challenges to NE implementation? a. Security weaknesses b. Download delays c. Search problems d. Limitations of the interface e. All of the above pg. 426 2. Which of the following is NOT a social challenge to NE implementation? a. Fear of consumers in buying or transacting business over the Web b. Lack of Internet standards pg. 426 c. Lack of firm experience in doing e-business d. Organizational fear of doing business over the Internet e. Ambiguous or hostile legal or regulatory environment for NE 3. The original infrastructure of the Internet was used for _______ in government and academia, security and payment were not high on the agenda of the developers. a. policy making b. regulation c. investigation d. information sharing pg. 428 e. reorganization 4. A main characteristic of the Internet that made the transition to commercial use difficult was that its original charter was ________. a. for profit b. volunteer c. privately owned d. publically owned e. non-profit pg. 429 5. _______ has been and will probably continue to be the most serious problem for firms wishing to do more and more business over the Internet. a. Hardware b. Software c. Security pg. 430 d. Networks e. Uncertainty 6. ________________ is when one node of a network has been compromised, entities on that node can masquerade as other by adopting their IP a. Cyber attack b. IP spoofing pg. 431 c. Trojan horse

d. Masked IP e. Denial of service 7. _________ drive the rate of technological innovation and when nonexistent or not evolving to keep pace with change, they can impede progress. a. Standards pg. 431 b. Regulations c. Laws d. Guidelines e. Policies 8. The ways in which the Internet is insecure are primarily ______ in nature. a. Organizational b. Managerial pg. 432 c. Operational d. Legislative e. Regulatory 9. __________ is(are) a technical problem for NEO’s because the Internet has so many places where hackers can penetrate. a. Transaction security pg. 434 b. Loss of connection c. Firewalls d. Back doors e. None of the above 10. A major technological limitation of most _______ is that they must be equipped to identify a line as belonging to a particular IP address. a. Transaction security b. Loss of connection c. Firewalls pg. 434 d. Back doors e. All of the above 11. ________ is the amount of time it takes for a Web client machine to receive and display a data file submitted by a Web server after that file was requested by the client. a. Web year b. Real time c. Process time d. Display time e. Download time pg. 435 12. Which of the following are functions of download time? a. The size of the data files being transmitted b. The technological configuration of nodes

c. The network infrastructure d. The bandwidth connection between nodes and infrastructures e. All of the above pg. 436 13. __________ is a project to develop a parallel Internet which would allow for high speed transmission of extremely large data files. a. Parallel 4 b. Internet 2 pg. 438 c. Arpanet d. Internet explorer e. Superhighway 14. Clients with dedicated lines are significantly more vulnerable to _________. a. Crashes b. Equipment malfunction c. Economic influences d. Random surveillance e. Computer hackers pg; 439 15. Hypermedia are requested by Web clients through the use of _______. a. keywords b. URL’s c. Hyperlinks d. Domain names e. All of the above pg. 442 16. ____________ are programs that are designed to find and report on the contents of Web pages. a. Applets b. Java-scripts c. Know-bots pg. 443 d. Snoopy’s e. Flashes 17. A _________consists of a user entering a list of key words. a. Script b. macro c. Keyboard query pg. 444 d. Shortcut e. All of the above 18. ________ is a strategy to put keywords in HTML headers which will put that page up near the top ten listing for common search strings. a. Weighting b. Spam-dexing pg. 446 c. Searching

d. Indexing e. Webdexing 19. __________ is the use of alternative media to advertise a firms URL. a. Spamming b. Cookies c. Media branding d. Alternative branding e. Spiral branding pg. 448 20. ________ are data files that are placed by the server on the client hard drive and keeps track of data that has been entered on the Web page by the client. a. Executables b. Cookies pg. 449 c. System files d. Folders e. Documents 21. The Web is severely limited in its ability to ______ consumer cyber-patterns. a. increase b. relate c. measure pg. 451 d. reduce e. reverse 22. Even if practical limitations could be eliminated by improved download time, there are _______ to Internet interface technology a. physical limitations pg. 451 b. cultural c. limits d. none of the above e. all of the above 23. ____________ are used as guidelines for the development of Internet software which conforms to generally accepted rules for communication between applications. a. Standards pg. 453 b. Regulations c. Laws d. Policies e. Guidelines 24. The lack of _____ in the general security of the Web and NE systems undermines usage. a. Standards b. Trust pg. 455

c. Consistency d. Regulation e. Guidelines 25. Different standards and protocols for Web computing and the Internet infrastructure exist in such areas as a. Encryption, electronic currency b. Electronic currency c. Multimedia d. None of the above e. All of the above pg. 454 26. Developing a firm Web site that is readable by all customers is difficult because _______. a. Different browser protocols and standards are used by different browsers. Pg. 454 b. Lack of developers c. Lack of platforms d. Of the digital divide e. All of the above 27. The Web is a ________ medium and customers can easily resist inducements to buy by just moving to another page. a. Push b. Pull pg. 457 c. Physical d. Virtual e. Cyber 28. The solution to management/cultural problems in instituting e-business practices and ideas is to foster a climate of ________ a. understanding b. Innovation c. Acceptance d. Tolerance e. All of the above pg. 457 29. ______ will facilitate business on the Internet by regularizing the payment process. a. A cashless society b. A paperless society c. E-orders d. E-cash pg. 459 e. E-loans

30. Governments will be far better off in achieving conditions of moral and economic sanity for their citizenry if they _________ rather than regulate. a. standardize b. Educate pg. 460 c. Legislate d. moderate e. escalate

Chapter 13 True/False 1. NE facilitates or creates the opportunities for a vast number of new commercial ventures. T p.425 2. The internet is not a client/server network. F p.428 3. The original infrastructure of the Internet was used for information sharing in government and academic, security and payment were not high on the agenda for developers. T p.428 4. Sites that have fast to download Web pages experience negative attitudes toward products. F p.429 5. Security is the most serious problem for firms wishing to do business over the Internet. T p.430 6. Unencrypted “plain text” files are secure. F p.432 7. Encrypted messages, when used correctly are better protection against all but the most highly motivated criminal interceptor. T p.432 8. Transaction security is a technical problem for NEO’s because the Internet has so many places where hackers can penetrate. T p.434 9. Transactional security is mostly a technological problem rather than a managerial problem. F p.434 10. Delays in download time can occur at the server side, in transmission, or at the client side. T p.436

11. A server can be set up as either dedicated or non-dedicated. T p.437 12. Transmission delays decrease download time of an internet communication. F p.438 13. Threats with regard to download time are most apparent on the server side in B2C e-commerce. F p.439 14. Hyperlinks are either hard coded into a hyper document or generated dynamically from user input. T p.442 15. Metrics are critical business issues for all new ventures, especially for business formations like NE. T p.447 16. The web browser is one of the richest electronic interfaces ever developed. T p.448 17. Better intrusion detection software from deeper understanding of hacker psychology is an emerging solution for prioritizing and coping with impediments to B2C e-commerce. T p.430 18. Designs and workarounds allow managers to deal with problems, even if the organization’s systems are not set up to accommodate security. T p.18 19. One way to avoid difficulty with search engines is to acquire an intuitive URL. T p.444 20. One of the major difficulties of Internet marketing is that the first move advantages are nearly insuperable, T p.455

Chapter 13 1. What type of server is the Internet? P.428 client/server 2. Define IP-Spoofing. P. 432 if one node has been compromised, then entities on that node can masquerade as others by adopting their IP. 3. What are 2 primary techniques available for concealing messages? P. 433 the first is to send non-text files, and the second is to send text files which are jumbled via cryptography 4. Why is transaction security a technical problem for NEOs? p. 434 because the internet has so many places where hackers can penetrate. 5. What is download time? P. 435 is the amount of time it takes for a Web client to receive and display a data file submitted by a Web server after that file was requested by the client.

6. Download time is primary a function of ________. P. 435 the size of the data files being transmitted and the technological configuration of nodes, the network infrastructure, and the bandwidth connection between nodes and infrastructure. 7. Where do delays in download time occur? P. 436 the server side, in transmission, or at the client side 8. The technological configuration of a server can increase download time in what three ways? p. 437 1. in the connection between the server and the Internet 2. In the processing capacity of the server itself. 3. in the security systems between the Internet gateway and the server that is processing requests and retrieving files. 9. What are the 2 basic limitations that the client side of the internet computing suffers from? P. 439 the connection and the processor 10. Threats with regard to download time are most apparent on the _______side in B2C e-commerce? P. 440 client 11. The ____side down load time limitations are completely within the control of the party that owns the server. P.440 server 12. What 3 ways are URLs typically invoked? P. 442 by manually typing in the URL, by recalling a URL from a list of bookmarks stored on the client machine, and via hyperlinks. 13. What are 3 possible solutions in the designs and workarounds-search problems? P. 448 1. Buying intuitively clear as well as related domain names. 2. Spiral branding. 3. portal links 14. What is spiral branding? P. 448 is the use of alternative media to advertise a firm’s URL URLs appear regularly on TV and radio as well as print media. 15. What are data files that are placed by the server on the client hard drive? P. 449 cookies 16. What is one of the richest electronic interfaces ever developed? P. 453the web browser 17. What are the critical business issues for all new ventures, but especially for business transformations like NE? p.439 metrics 18. What is transmitted across a variety of links for each packet set? P. 432conversations

19. Encryption technology uses ____________to scramble messages. P. 433cryptography 20. What does the term spam-dexing mean? p. 446 It is a strategy to put keywords in HTML headers which will put that page up near the top ten listing for common search strings

Chapter 14 1. The Internet is governed by international bodies that decide key matters by a(n) _________. a. lottery system b. estimation c. preponderance of evidence d. proxy e. rough consensus pg. 468

Assisting developing countries in adopting the Internet, and not overtaxing or overcharging them for their participation, will likely produce long term ________ for everyone a. contracts b. technical problems c. prosperity pg. 469 d. political problems e. relationships

When there are restraint of trade situations, such as anti-trust suits against undesirable monopolies, there is little that can be done to instill competition into the system without the actions of _________. a. customers b. government pg. 470 c. stakeholders d. investors e. management

The acquisition and exploitation of proprietary data about customers’ behavior is invaluable for _______. a. sustainable advantage pg. 471 b. tax breaks c. security purposes d. customer relations e. none of the above

The Internet cannot guarantee _____ but there are ways that will make it more acceptable to those who are concerned about maintaining the privacy of data about individuals and corporate entities. a. prices b. products c. delivery d. content e. privacy pg. 471

A means by which individuals can be encouraged to accept the entry and sharing of personal data on the web is by____________. a. coersion b. hacking c. informed consent pg. 471 d. identity theft e. all of the above

7. _____ are those legal rights associated with products of the intellect. a. Publishing rights b. Proprietary rights c. Intellectual property rights pg. 472 d. Trade secrets e. Patents 8. ___________ are issued for inventions which involve the implementation of a novel idea. a. Publishing rights b. Proprietary rights c. Intellectual property rights d. Trade secrets e. Patents pg. 473 9. Until patents are formally granted, they are ________, but they can be retroactive in the sense that if they are granted, the date of protection is the date of original submission for patenting. a. pending pg. 473 b. trade secrets c. domain names d. legal remedies only e. intellectual property rights 10. ____________ are ways to protect internal (non-public) organizational properties that are intellectual in nature. a. Pending patents b. Trade secrets pg. 473 c. Domain names d. Legal remedies e. Intellectual property rights 11. _____________ are similar to trademarks in that they are symbols that uniquely represent the firm. a. Trade secrets b. Domain names pg. 474 c. Legal remedies d. Intellectual property rights

e. Patents 12. ____________ are of limited value in a medium that began on an international scale and continues to grow globally at an extraordinary pace. a. Patents b. Trade secrets c. Legal remedies pg. 475 d. International property rights e. Domain names 13. The ethical approach that recognizes the rights of society to maximize the utility of the greatest number is known as __________. a. totalitarianism b. egalitarianism c. retrotarianism d. polyannaism e. utilitarianism pg. 476 14. The distance between parts of society that have access to computers and networks and those that do not has been called the ___________. a. information superhighway b. digital divide pg. 477 c. incremental difference d. geographical vicinity e. access divide 15. A government’s _____________policy can encourage or retard forces that diminish the digital divide. a. international b. domestic c. economic pg. 480 d. regulatory e. insurance 16. Think globally, but act _____________ a. responsibly b. quickly c. effectively d. quietly e. locally pg. 487 17. Which of the following is a facet of diffusion? a. Sophistication of use b. Pervasiveness c. Geographic dispersion d. Organizational infrastructure

e. All of the above pg. 488 18. ______ to the Internet in some countries tends to be due to the perceived risk of disseminating undesirable content or political views. a. Resistance pg. 488 b. Ignorance c. Propaganda d. Delegation e. Diffusion 19. The _______ is one manifestation of the tendency of IT to stimulate economies and to undergird its growth. a. digital divide b. proprietary rights c. trade policy d. economic policy e. Internet pg. 488 20. Which of the following is NOT a macro factor leading in increases in IT? a. Society b. Economy c. Infrastructure d. Policy e. Industry pg. 489 21. _________ can be a tremendous boost to productivity, creating jobs that, from a local standpoint, pay well. a. Human capital pg. 490 b. Hardware c. Software d. Networks e. Bandwidth 22. ____ are one way that developing countries have opportunities for economic development. a. Low production costs pg. 490 b. High labor costs c. Low investments d. High tax brackets e. None of the above 23. A nation that vigorously enforced ________ would encourage foreign direct investment. a. government regulation b. taxation c. interstate transactions regulation

d. copyright laws pg 490 e. None of the above 24. Cultures that tend to parallel process view ______ in a different way. a. space b. dimension c. time pg. 491 d. geographical location e. technology 25. _______________ is the influence that is exerted, consciously or unconsciously, by technically-advanced cultures on other cultures and is one way in which transference is eased. a. Technological culturation pg. 493 b. Transformation c. Egotarianism d. Social arrogance e. Advanced mores 26. As firms internationalize, there is a growing need to understand how ________ might affect a NEO’s ability to adopt and utilize the Internet. a. trade secrets b. copyright law c. cultural factors pg. 494 d. domain names e. proprietary standards 27. Flows of ______ over the Internet are the equivalent of physical movements of people, money, and goods/services. a. information pg. 495 b. capital c. transactions d. physical resources e. None of the above 28. Highly legitimate sales of music, art, and movies could all be transferred directly between users using _______ applications. a. security b. graphic c. trade d. peer-to-peer pg. 497 e. browser 29. Registration with independent and trusted ______ is one way in which documentation and time stamping can be documented. a. third parties pg. 473

b. c. d. e.

networks security companies governments None of the above

30. _________serve either as communities of practice or as substitutes for face-toface social groups. a. Virtual communities pg. 484 b. Regulatory agencies c. Internet providers d. Third party providers e. Trade organizations

Chapter 14 True/False Questions 1. Privacy issues are one more place where there is a need for legal infrastructure in a country. T. P. 470 2. Knowing more than your competitors about customer demand is intuitively attractive as a competitive advantage. T. P. 470 3. Patents are ways to protect internal organizational properties that are intellectual in nature. F. P. 474 4. Domain names are similar to trademarks in that they are symbols that uniquely represent the firm. T. P. 474 5. Trade secrets are more familiar to most people than copyrights and patents. F. P. 474 6. Trade secret laws allow the firm to pursue civil and criminal actions if a breach occurs later. T. P. 474 7. The digital divide exists in variant forms, and it is important to recognize that it is not just a within-country phenomenon. T. P. 477 8. One of the best cases of a national transformation coming largely from a welleducated workforce is Ireland. T. P. 490 9. High production costs are one way that developing countries have opportunities for economic development. F. P. 490

10. Digital goods and services are good substitutes for the physical equivalents they replace. T. P. 495 11. Patents in the US can be retroactive in the sense that if they are granted, the date of protection is the date of original submission for patenting. T. P.471 12. Virtual communities serve either as communities of practice or as substitutes for face-to-face social groups. T. P.484 13. Chile is a country with major national IT policy initiatives. T. p. 489 14. A simple form of cultural ethnocentricity would be the case where the system assumes a particular view of time on the part of users. T. P.490 15. The influence that is exerted, consciously or unconsciously by technologically advanced cultures on other cultures is called technological culturation. T. p. 492 16. Internet governance is undertaken by international bodies that decide key matters. F. p.469 17. A firm that operates across borders to achieve economies of scale and integration of supply networks is called the digital divide. F. pp.487 18. Registration with independent and trusted third parties is one way in which documentation and time stamping can be documented. T. p. 473 19. Patents are issued for inventions, which involve the implementation of a novel idea. T. p.473 20. A Gantt chart is a representation of Internet diffusion patterns. F. p.492

Short Answers 1. The Internet is governed by international bodies that decide key matters by what method? P. 468 Rough concensus 2. Super powers and developing countries each playing an equal role in the evolution of what grass roots phenomenon?? P.468 Internet governance 3. A means by which individuals can be encouraged to accept the entry and sharing of personal data on the web? P.471 informed consent 4. A minimal set of personal data the firm should gather without permission is called what? P. 471 need to know

5. Define intellectual property. P. 473 those legal rights associated with products of the mind having no major physical properties. 6. What statues are associated with language and images, as well as computer programs? P.473 copyrights 7. ________ are issued for inventions which involve the implementation of a novel idea. P. 473 patents 8. Until patent are formally granted, they are considered ________, but they are retroactive in the sense that if they are granted, the date of application is the relevant date of infringement. P.473 pending 9. What are trade secrets? P.473 ways to protect internal organizational creations that are intellectual in nature. 10. ________are similar to trademarks in that they are symbols that uniquely represent the firm. P. 474 Domain names 11. What does the term caveat emptor means? P. 475 Buyer beware 12. The distance between parts of society that have access to computers and networks and those that do not have been called? P. 477 Digital divide 13. What does the term “transnational firm” means? P. 487 a firm that operates across borders to achieve economies of scale and integration of supply networks. 14. _______is the key to trade off between exploiting international standardization, and catering to local and regional idiosyncrasies P. 487 Net-enhancement 15. A graphical model which depicts the representation of Internet diffusion patterns. P. 487 Spider web depiction 16. What is the term for transference of knowledge from technically advanced countries to those lacking in technology? P. 487 Information technology transfer 17. What is a Gant Chart? 492 A chart that shows a time lines for tasks and the interrelationships between the tasks. 18. Cultural beliefs and values are a _____of the mind that distinguishes one human group from another. 494 Collective programming 19. What is the meaning of technological culturation (TC)? P. 493 The influence that is exerted, consciously or unconsciously, by technologically advanced cultures on other cultures and is one way in which transference is eased.

20. What does the acronym ITT mean? P. 24 Information technology transfer