Kean University
MGS 5040                                                                    Spring, '10
                                  **** Midterm ****
All questions are worth 1.5% except 2(1%) and 6 and 16(3%).
Statements are True-False questions.
 1. E-commerce can be considered to have begun in ______.
    a. 1980      b. 1990      c. 1995      d. 2000
 2. The course text addresses overall issues, for understanding e-commerce, of:
    a. business        b. society          c. technology         d. all of the above
 3. E-commerce technologies can be used: [Note: Multiple answers are possible.]
    a. to reduce supply chain costs        b. to increase production efficiency
    c. only by totally online companies    d. to tighten customer relationships
 4. E-commerce primarily involves the application of digital technologies to business
 5. E-business may be considered to be the digital enablement of transactions and processes
    within an organization
 6. Match the following e-commerce features with their business significance:
      i) information density    a. ability of companies to engage consumers in a dialog
     ii) interactivity             that dynamically adjusts the experience to the 
    iii) personalization           individual and makes the consumer a co-participant
     iv) richness               b. enabling user content creation
      v) universal standards    c. integration of video, audio and text marketing messages
                                d. network externalities
                                e. reduces information costs and raises quality
                                f. targeting of marketing messages to specific individuals
                                   by adjusting the message to a person's name, interests,
                                   and past purchases
                                g. total number of customers an e-commerce business can
 7. Which of the following is not an example of Web 2.0?
    a. Second Life       b. Wikipedia       c. YouTube       d. Yahoo
 8. The total amount of Business-to-Business (B2B) e-commerce revenues in 2009 was about
    twice that spent on Business-to-Business (B2C) e-commerce.
 9. Match the following types of e-commerce to an example:
      i) B2B     a.
     ii) B2C     b.
    iii) C2C     c. eBay
     iv) P2P     d. Napster
                 e. PDA
10. Which of the following is an example of Peer-to-Peer (P2P) e-commerce?
    a.      b. BitTorrent      c.      d. eBay
11. The most significant technology that can reduce barriers to Internet access is:
    a. digital subscriber lines (DSL)     b. electronic data interchange (EDI)
    c. shopping bot programs              d. wireless Web technology
12. ________ Law quantifies the network effect, by stating that the value of a network grows
    by the square of the number of participants.
    a. Gate's      b. Metcalfe's      c. Moore's      d. Porter's
13. Which of the following statements about the Web is not true?
    a. It was developed in the early 1990s.
    b. It provides access to pages written in HTML.
    c. It is the technology upon which the Internet is based.
    d. It provides access to Web pages that incorporate graphics, sound, and multimedia.
14. Web-only firms accounted for around 45 percent of online retail firm revenues in 2008.
15. Which of the following is the top online retailer ranked by online sales?
    a.      b.      c.      d.
16. Match the following questions with their appropriate business model element:
      i) how will the firm earn money?                        a. competitive advantage
     ii) not a key element                                    b. competitive environment
    iii) who else occupies the firm's intended marketspace?   c. information asymmetry
     iv) why a customer should buy from the firm?             d. management team
                                                              e. market strategy
                                                              f. value proposition
                                                              g. revenue model
17. Most first movers lack the complimentary resources needed to sustain their advantage.
18. Today, the portal business model offers users content as well as Web search tools in
    order to act as a destination site.
19. All online content providers charge for information provided online.
20. Syndication is a variation on the content provider business model in which content
    providers aggregate and then distribute content produced by others.
21. The financial, travel, and job placement services industries use the transaction
    broker business model.
22. is an example of an industry consortia.
23. The current key technologies for m-commerce are:
    a. Cell phone-based 2G, 3G, and 4G      b. Cell phone-based 3G, Wi-Fi and Bluetooth 
    c. WiFi, TCP/IP, and HTML               d. WLAN, WiFi, and Ultrawideband
24. Which of the following wireless technologies can best be used to transfer very large
    a. Bluetooth      b. Ultrawideband      c. Zigbee      d. 3G
25. Which group of companies has profited most, as a whole, from the development of
    a. airline ticketing companies           b. B2B service providers 
    c. e-tailers                             d. Internet infrastructure companies
26. Which of the following features of e-commerce technology changes industry structure by
    weakening powerful sales channels, shifting bargaining power to consumers?
    a. global reach   b. information density      c. ubiquity      d. universal standards
27. If you wished to leverage the ubiquitous nature of the Web to differentiate your product,
    you would typically implement a strategy of commoditization.
28. The Internet Protocol is the protocol that provides the Internet addressing scheme.
29. The natural language system used to represent IP addresses is called the uniform
    resource locator system.
30. Most cell phones today use some version of Advanced RISC Machine (ARM) chips.
31. SSL is the protocol used to send secure mail to a server.
32. HTML is the Internet protocol used to transfer Web pages.
33. FTP runs in the _________ layer TCP/IP.
    a. Application      b. Internet      c. Network Interface      d. Transport
34. Match the following with their appropriate layer of the Internet architecture:
      i) client applications                 a. Applications layer
     ii) houses the TCP/IP protocol          b. Middleware Services layer
    iii) telecommunications networks         c. Network Technology Substrate layer
         and protocols                       d. Transport Services & Representation
     iv) ties the applications to the           Standards layer
         communications network and includes
         such services as security and
35. Pathping is a utility program that allows you to track the path, in detail, of a message
    you send from your client to a remote computer on the Internet.
36. The backbone of the Internet is formed by Internet Service Providers (ISPs).
37. Latency refers to delays in messages caused by the uneven flow of information packets
    through the network.
38. Internet2 is a consortium of more than 200 universities, government agencies, and
    private businesses that are collaborating to find ways to make the wireless Web, and
    wireless Internet access and delivery, more efficient.
39. Another name for the standard IEEE 802.11b is Wi-Fi.
40. XML is expected to replace HTML.
41. Which of the following systems is required to understand marketing effectiveness of your
    e-commerce site?
    a. Inventory management system       b. Product database
    c. Shopping cart                     d. Site tracking and reporting system
42. The practice of owning (or leasing) and managing your own Web servers but housing them
    in a vendor's physical facility is known as co-location.
43. It can cost as much to maintain a Web site (on an annual basis) as it does to build it.
44. Benchmarking is the process of comparing a Web site with that of its competitors in
    terms of response speed, quality of layout, and design.
45. Dynamic page generation typically raises menu costs.
46. With dynamic page generation, the contents of a Web page are stored as objects in a
    database, rather than being hard-coded in HTML.
47. The _________ Web server software is used more for the Fortune 1000 firms, than on
    average for all firms.
    a. Apache      b. Microsoft Internet Information Server      c. Sun      d. Zeus
48. Which of the following types of servers creates an environment for online real-time text
    and audio interactions with customers?
    a. Chat server      b. Groupware server      c. List server      d. Proxy server
49. The primary amount of time maintaining an e-commerce site is spent on debugging code.
50. Horizontal scaling increases processing power of hardware components but maintains the
    physical footprint and the number of servers.
51. VBScript is a language that Microsoft invented to compete with JavaScript.
52. Tools that are available for providing interactivity and active content on a Web site
    include: [Note: Multiple answers are possible.] 
    a. CGI scripts      b. JavaScript      c. ActiveX      d. Cold Fusion
53. Which e-commerce Web site feature do customers find the most annoying? 
    a. slow-loading pages      b. dead links      c. pop-up ads
    d. requiring the installation of extra software to view the site
54. The primary way a Web site is able to personalize the content presented to a visitor is
    through the use of:
    a. privacy policies    b. site management tools    c. accessibility rules    d. cookies
55. The most common type of attack against computer systems is:
    a. Web site defacement      b. financial fraud     c. insider abuse of Internet access
    d. denial of service attacks
56. The six keys dimensions to e-commerce security are: nonrepudiation, authenticity,
    availability, integrity, privacy, and:
    a. confidentiality      b. functionality      c. safety      d. viability
57. In general, the more security measures added to an e-commerce site, the more difficult
    it is to use, and the slower the site becomes.
58. Which of the following is not a key point of vulnerability when dealing with e-commerce?
    a. the client computer            b. the communications pipeline
    c. the credit card companies      d. the server
59. The overall rate of online credit card fraud is approximately ________ the rate of offline
    credit card fraud.
    a. half          b. twice         c. the same as         d. four times
60. Phishing attacks rely on malicious code.
61. Software that is used to obtain private user information such as user's keystrokes or
    copies of e-mail is referred to as:
    a. adware      b. browser parasites      c. spyware       d. Trojan horses
62. PGP/pretty good privacy is a widely used e-mail public key encryption software tool.
63. The first step in developing an e-commerce security plan is to:
    a. create a security organization      b. develop a security policy
    c. perform a security audit            d. perform a risk assessment
64. The most common payment system based on dollar amount of transactions in the USA is:
    a. cash        b. credit card          c. personal check         d. debit card
65. The EBPP (electronic billing presentment and payment) business model, originally created
    by utility companies, is that of consolidator.