1. Multiple Choice Questions
1. Which of the following describes e-commerce?
a) Buying products from each other
b) Buying services from each other
c) Selling services from each other
d) All of the above
2. Which of the following is part of the four main segments for e-commerce?
a) B2B
b) B2C
c) C2B
d) All of the above
3. Which segment do eBay, Amazon.com, and LandsEnd.com belong?
a) B2Bs
b) B2Cs
c) C2Bs
d) C2Cs
4. Which segment focuses on consumers dealing with each other?
a) B2B
b) B2C
c) C2B
d) C2C
5. Which segment is eBay an example?
a) B2B
b) C2B
c) C2C
d) None of the above
6. Which segment is most of the media's attention focused on?
a) B2B
b) B2C
c) C2B
d) C2C

2. 7. In which segment is the dollar volume of e-commerce expected to be
concentrated?
a) B2B
b) B2C
c) C2B
d) C2C
8. What combines purchase requests from multiple buyers into a single large order,
which justifies a discount from the business?
a) Digital divide
b) Global digital divide
c) Demand aggregation
d) None of the above
9. The best products to sell in B2C e-commerce are:
a) Small products
b) Digital products
c) Specialty products
d) Fresh products
10. Which products are people most likely to be more uncomfortable buying on the
Internet?
a) Books
b) Furniture
c) Movies
d) All of the above
11. Which products are people most likely to be comfortable buying on the Internet?
a) Books
b) PCs
c) CDs
d) All of the above
12. Digital products are best suited for B2C e-commerce because they:
a) Are commodity like products
b) Can be mass-customized and personalized
c) Can be delivered at the time of purchase
d) All of the above

3. 13. The set of marketing tools that the firm uses to pursue its marketing objectives
in the target market is called a(n):
a) Customer mix
b) Competitor mix
c) Marketing mix
d) All of the above
14. All of the following are techniques B2C e-commerce companies use to attract
customers, except:
a) Registering with search engines
b) Viral marketing
c) Online ads
d) Virtual marketing
15. What encourages users of a product or service supplied by a B2C company to
ask friends to join in as well?
a) Spam
b) Viral marketing
c) Affiliate programs
d) None of the above
16. What is an arrangement made between e-commerce sites that direct users from
one site to the other?
a) Spam
b) Viral marketing
c) Affiliate programs
d) None of the above
17. Which term represents a count of the number of people who visit one site, click
on an ad, and are taken to the site of the advertiser?
a) Affiliate programs
b) Click-throughs
c) Spam
d) All of the above
18. What is the percentage of customers who visit a Web site and actually buy
something called?
a) Affiliate programs
b) Click-throughs
c) Spam

4. d) Conversion rate
19. What are materials used in production in a manufacturing company or are
placed on the shelf for sale in a retail environment?
a) Direct materials
b) Indirect materials
c) EDI
d) None of the above
20. What are materials that are necessary for running a modern corporation, but do
not relate to the company's primary business activities?
a) Direct materials
b) Indirect materials
c) EDI
d) None of the above
21. What are ballpoint pens purchased by a clothing company?
a) Direct materials
b) Indirect materials
c) EDI
d) None of the above
22. What is another name for MRO materials?
a) Direct materials
b) Indirect materials
c) EDI
d) None of the above
23. What is the process in which a buyer posts its interest in buying a certain
quantity of items, and sellers compete for the business by submitting
successively lower bids until there is only one seller left?
a) B2B marketplace
b) Intranet
c) Reverse auction
d) Internet
24. What are plastic cards the size of a credit card that contains an embedded chip
on which digital information can be stored?
a) Customer relationship management systems cards
b) E-government identity cards
c) FEDI cards
d) Smart cards
25. Most individuals are familiar with which form of e-commerce?
a) B2B

5. b) B2C
c) C2B
d) C2C
26. Which form of e-commerce currently accounts for about 97% of all e-commerce
revenues?
a) B2B
b) B2C
c) C2B
d) C2C
27. Which of the following are advantages normally associated with B2B e-
commerce?
a) shorter cycle times
b) reduction in costs
c) reaches wider audiences
d) all of the above
28. What does Porter's five forces model determine?
a) The relative attractiveness of an industry
b) The competitive advantage of a competitor
c) The distribution chain of a competitor
d) The relative attractiveness of another business
29. All of the following are part of Porter's five forces, except:
a) Buyer power
b) Threat of new entrants
c) Consumer power
d) Rivalry among existing competitors
30. If the buyers in a particular industry hold a lot of the power, the industry is less
attractive to enter. Which of Porter's five forces does this statement reflect?
a) Buyer power
b) Threat of new entrants
c) Supplier power
d) Rivalry among existing competitors

6. SET - 1
1. d 2. d 3. b 4. d 5. d 6. b
7. a 8. c 9. b 10. b 11. d 12. d
13. c 14. d 15. b 16. c 17. b 18. d
19. a 20. b 21. b 22. b 23. c 24. d
25. b 26. a 27. d 28. a 29. c 30. a

7. SET - 2
1. If the suppliers in a particular industry hold a lot of the power, the industry is
less attractive to enter. Which of Porter's five forces does this statement
represent?
a) Buyer power
b) Threat of new entrants
c) Supplier power
d) Rivalry among existing competitors
2.If the suppliers in a particular industry hold a lot of the power, the industry is:
a) Saturated with alternative products or services
b) Using information technology to gain a competitive advantage
c) More attractive to enter
d) None of the above
3. Which statement describes switching costs?
a) There are many alternatives to using the product or service.
b) There are few alternatives to using the product or service.
c) High costs that make customers reluctant to switch to another product or
service.
d) Low costs that make customers want to switch to another product or
service.
4. If the threat of substitute products or services is low it is a(n):
a) Disadvantage to the supplier
b) Advantage to the buyer
c) Advantage to the supplier
d) None of the above
5. The threat of new entrants is high when it is:
a) Hard for customers to enter the market
b) Hard for competitors to enter the market
c) Easy for competitors to enter the market
d) Easy for customers to enter the market
6. If it is easy for competitors to enter the market, the threat of new entrants is
considered:
a) High
b) Low
c) More

8. d) Less
7. An industry is less attractive for suppliers when the rivalry among existing
competitors is:
a) High
b) Low
c) More
d) Less
8. Porter's Five Forces Model applies to?
a) industry
b) market
c) town / city
d) company
9. Porter's Five Forces Model can be used to do what?
a) decide to enter an industry
b) decide to expand if you're already in an industry
c) all of the above
d) none of the above
10. Which of the following is a useful tool when considering business strategy and
IT?
a) Porter's Five Forces Model
b) Competitive Intelligence
c) General Business Model
d) B2B model
11. Before starting a new company or expanding current operations, consider
___________.
a) finances
b) Porter's Five Forces Model
c) IT
d) bankruptcy
12. Which of the following protects an existing company from the threat of new
entrants?
a) switching costs
b) loyalty programs
c) entry barriers
d) affiliate programs
13. A product or service that customers have come to expect from an industry,
which must be offered by new entrants if they wish to compete and survive, is
known as a(n)?

9. a) switching costs
b) loyalty programs
c) entry barriers
d) affiliate programs
14. Which of the following statements accurately reflect the impact of technology?
a) technology has caused buyer power to increase
b) technology has lessened the entry barriers for many industries
c) technology has increased the threat of substitute products and services
d) all of the above
15. A business cannot be all things to all people. Instead, a business must:
a) identify target customers
b) identify the value of products/services as perceived by customers
c) all of the above
d) none of the above
16. Which type of merchandise is lower priced but purchased frequently?
a) convenience
b) specialty
c) critical
d) daily
17. Which type of merchandise is higher priced but purchased less frequently?
a) convenience
b) specialty
c) critical
d) daily
18. A business competing in a commodity like environment must focus on which of
the following?
a) price
b) ease / speed of delivery
c) ease of ordering
d) all of the above
19. Which of the following refers to creating products tailored to individual
customers?
a) mass customization
b) demand aggregation
c) direct materials
d) reverse auction
20. Materials used in the normal operation of a business but not related to primary

10. business operations are called what?
a) supplies
b) direct materials
c) indirect materials
d) daily stuff
21. Amazon.com is well-known for which e-commerce marketing technique?
a) banner ads
b) pop-up ads
c) affiliate programs
d) viral marketing
22. What is the name given to an interactive business providing a centralized market
where many buyers and suppliers can come together for e-commerce or
commerce-related activities?
a) direct marketplace
b) B2B
c) B2C
d) electronic marketplace
23. Which form of e-marketplace brings together buyers and sellers from multiple
industries, often for MRO materials?
a) horizontal
b) vertical
c) integrated
d) inclined
24. Which form of e-marketplace brings together buyers and sellers from the same
industry?
a) horizontal
b) vertical
c) integrated
d) inclined
25. Which type of add appears on a web page?
a) pop-under ad
b) pop-up ad
c) banner ad
d) discount ad
26. What type of ad appears on top of a web page?
a) pop-under ad
b) pop-up ad
c) banner ad

11. d) discount ad
27. What type of ad appears under a web page?
a) pop-under ad
b) pop-up ad
c) banner ad
d) discount ad
28. Which, if any, of the following types of ads are people most willing to tolerate?
a) pop-under ad
b) pop-up ad
c) banner ad
d) none of the above
29. Which of the following is an Internet-based company that makes it easy for one
person to pay another over the Internet?
a) electronic check
b) electronic bill presentment and payment
c) conversion rates
d) financial cybermediary
30. Which of the following is a method of transferring money from one person's
account to another?
a) electronic check
b) credit card
c) e-transfer
d) none of the above

12. Set – 2
1. c 2. d 3. c 4. c 5. c 6. a
7. a 8. a 9. c 10. a 11. b 12. c
13. c 14. d 15. c 16. a 17. b 18. d
19. a 20. c 21. c 22. d 23. a 24. b
25. c 26. b 27. a 28. d 29. d 30. a

13. SET – 3
1. Which of the following is the knowledge workers' actual signature indicating
he/she approves all of the business requirements?
a) JAD
b) Technical architecture
c) Requirements definition document
d) Sign-off
2. What defines the hardware, software, and telecommunication equipment
required to run the system.
a) Technical architecture
b) JAD
c) Modeling
d) GUI
3. What is the interface to an information system?
a) Technical architecture
b) JAD
c) Modeling
d) GUI
4. What is the activity of drawing a graphical representation of a design?
a) Technical architecture
b) JAD
c) Modeling
d) None of the above
5. What is the ability to model the information system screens for an entire
system?
a) GUI screen design
b) JAD
c) Technical architecture
d) None of the above
6. Which phase takes all of your detailed design documents from the design phase
and transforms them into an actual system?

14. a) Analysis phase
b) Design phase
c) Development phase
d) Testing phase
7. Which phase builds a technical blueprint of how the proposed system will work?
a) Analysis phase
b) Design phase
c) Development phase
d) Testing phase
8. Which phase involves end-users and IT specialists working together to gather,
understand, and document the business requirements for the proposed system?
a) Analysis phase
b) Design phase
c) Development phase
d) Testing phase
9. What are the detailed steps the system must perform along with the expected
results of each step?
a) Testing phase
b) Development phase
c) Technical architecture
d) Test conditions
10. Which of the following highlights how a system should work?
a) User documentation
b) GUI
c) Technical architecture
d) None of the above
11. What type of training is held in a classroom environment and lead by an
instructor?
a) Online training
b) Workshop training
c) Help desk
d) None of the above
12. What type of training runs over the Internet or off a CD-ROM?
a) Online training

15. b) Workshop training
c) Help desk
d) None of the above
13. What is a group of people who responds to knowledge workers' questions?
a) Online training
b) Workshop training
c) Help desk
d) None of the above
14. Which phase monitors and supports the new system to ensure it continues to
meet the business goals?
a) Analysis phase
b) Design phase
c) Maintenance phase
d) Testing phase
15. During which phase is it the most expensive to find an error?
a) Analysis phase
b) Design phase
c) Maintenance phase
d) Planning phase
16. Which activity will you perform to determine if the system satisfies the business
requirements and enables the knowledge workers to perform their jobs
correctly?
a) Test condition
b) Testing phase
c) UAT
d) None of the above
17. Why do scope creep and feature creep most likely occur?
a) Unclear or missing requirements
b) Skipping SDLC phases
c) Failure to manage project scope and project plan
d) Changing technology
18. What occurs when the scope of the project increases?
a) Scope creep
b) Feature creep
c) Insourcing
d) All of the above
19. What occurs when developers add extra features that were not part of the initial

16. requirements?
a) Scope creep
b) Feature creep
c) Insourcing
d) All of the above
20. Which of the following are choices for building an information system?
a) Insourcing
b) Selfsourcing
c) End-user development
d) All of the above
21. What is it called when IT specialists within your organization develop the
systems?
a) Insourcing
b) Selfsourcing
c) Outsourcing
d) All of the above
22. What is development and support of an IT system by knowledge workers with
little or no help from IT specialists called?
a) Insourcing
b) Selfsourcing
c) Outsourcing
d) All of the above
23. What is the delegation of specific work to a third party for a specified length of
time, at a specified cost, and at a specified level of service?
a) Insourcing
b) Selfsourcing
c) Outsourcing
d) None of the above
24. What is the process of building a model that demonstrates the features of a
proposed product, service, or system?
a) Insourcing
b) Selfsourcing
c) Outsourcing
d) None of the above
25. Which of the following is another term for self sourcing?
a) Insourcing
b) Customer development
c) End user development

17. d) Outsourcing
26. Which of the following is an advantage of selfsourcing?
a) Improves requirements determination
b) Increases knowledge worker participation and sense of ownership
c) Increases speed of systems development
d) All of the above
27. Which of the following is a disadvantage of selfsourcing?
a) Inadequate knowledge worker expertise leads to inadequately developed
systems
b) Lack of organizational focus creates “privatized” IT systems
c) Insufficient analysis of design alternatives leads to subpar IT systems
d) All of the above
28. Which of the following is a disadvantage of self sourcing?
a) Improves requirements determination
b) Increases knowledge worker participation and sense of ownership
c) Increases speed of systems development
d) Lack of organizational focus creates “privatized” IT systems
29. Which of the following is an advantage of self sourcing?
a) Inadequate knowledge worker expertise leads to inadequately developed
systems
b) Increases knowledge worker participation and sense of ownership
c) Insufficient analysis of design alternatives leads to subpar IT systems
d) Inadequate knowledge worker expertise leads to inadequately developed
systems
30. Which of the following is an advantage of outsourcing?
a) Focus on unique core competencies
b) Better predict future costs
c) Acquire leading-edge technology
d) All of the above

18. SET – 3
1. d 2. a 3. d 4. c 5. a 6. c
7. b 8. a 9. d 10. a 11. b 12. a
13. c 14. c 15. c 16. c 17. c 18. a
19. b 20. d 21. a 22. b 23. c 24. d
25. c 26. d 27. d 28. d 29. b 30. d