Q&A Hero

Q: The inability to deliver products on time is a typical problem in offline commerce, but not online commerce.

Q: (p. 359) Corporations are formed under national incorporation laws.

Q: The order fulfillment process differs between B2B and B2C activities, between the delivery of goods and of services, and between small and large products.

Q: (p. 359) The typical MNC is international rather than national.

Q: The movement of returns from customers to vendors is known as negative logistics.

Q: (p. 358) Though TNCs differ greatly in international dimensions, a single measure has been created that can capture the definitive meaning of "transnational."

Q: When compared to traditional logistics, the transporter for e-logistics is frequently the same company.

Q: (p. 356) Sometimes those using the name multinational mean to imply that these companies have erased national allegiances, becoming itinerant firms that move investment and activity from nation to nation in search of profits.

Q: When compared to traditional logistics, the inventory flow for e-logistics is usually unidirectional.

Q: (p. 356) As MNCs moved into the fifth tier of internationalization, their strategic thinking was more influenced by national boundaries.

Q: EC logistics, or e-logistics, refers to the logistics of EC systems mainly in B2B.

Q: (p. 355) In global production, a value chain can span two or more countries.

Q: Logistics is the process of planning, implementing, and controlling the efficient and effective flow and storage of goods, services, and related information from point of origin to point of consumption to meet customer requirements.

Q: (p. 354) MNCs are all similar in their organizational structures and operations.

Q: Back-office operations are activities that support fulfillment of orders, such as packing, delivery, accounting, and logistics.

Q: (p. 322) In 1914, Congress set up a second independent regulatory commission, the ____, to prohibit unfair means of competition. A. Interstate Commerce Commission B. United States Consumer Product Safety Commission C. U.S. Commission on Civil Rights D. Federal Trade Commission

Q: (p. 322) Which of the following is true regarding the Interstate Commerce Commission? A. It was an executive agency. B. It was run by 10 commissioners. C. The commissioners served staggered six-year terms. D. Five of the commissioners were to be of any one political party.

Q: Order fulfillment refers only to providing customers with what they have ordered and doing so on time.

Q: One issue typical to EC is that EC is based on the concept of pull operations that begin with an order, frequently a customized one.

Q: (p. 322) The first independent regulatory commission that was set up by the Congress to regulate the railroads was the: A. Public Utilities Commission. B. Interstate Commerce Commission. C. Public Service Commission. D. Railroad Revitalization Commission.

Q: (p. 322) A(n) _____ agency is a regulatory agency run by a small group of commissioners free of political control. A. traditional executive branch B. general regulatory C. federal executive department D. independent regulatory

Q: When Amazon.com launched in 1995, its business model called for virtual retailing that had no warehouses, no inventory, and no shipments. This model proved to work well for very large e-tailers.

Q: (p. 321) During the first wave of regulation, most of the offices that were set up to perform regulatory functions were primarily promotional in nature. Which of the following was an exception? A. Copyright Office B. Bureau of Fisheries C. Comptroller of the Currency D. Patent and Trademark Office

Q: Describe smart cards, stored-value cards, and e-checks.

Q: How do B2B electronic payments and billing systems differ from B2C electronic payments?

Q: (p. 321) The first wave of regulation: A. oversaw the set up of independent regulatory commissions. B. was not predominately promotional for business. C. allowed the government to give vast financial subsidies and grants to private interests. D. eliminated tariffs to protect infant industries.

Q: (p. 321) The clause in Article I, Section 8 of the Constitution that gives the Congress the power to regulate business is called the: A. Commerce Clause. B. Contract Clause. C. Establishment Clause. D. Vesting Clause.

Q: Define address verification system. What is one disadvantage of the Address Verification System (AVS)?

Q: (p. 321) Which part of the U.S. Constitution gives the federal government the right to regulate business? A. Article I B. Article III C. Article V D. Article VI

Q: What costs do online merchants incur for fraudulent transactions?

Q: (p. 320) Industries such as the steel industry and big agricultural sectors such as cotton, peanuts, sugarcane, and tobacco benefit from protectionist rules and subsidies. This is an example of the government: A. passing regulations to benefit special interests. B. regulating socially desirable goods and services. C. regulating socially desirable production methods. D. passing resolution of national and global problems.

Q: Identify five of the nine crucial factors that come into play in determining whether a particular method of e-payment successfully achieves critical mass.

Q: (p. 320) Regulation of railroads, banks, and natural resources are examples of the government: A. passing regulations to benefit special interests. B. regulating socially desirable goods and services. C. regulating socially desirable production methods. D. passing resolutions of national and global problems.

Q: For sellers the main benefit of a letter of credit (L/C) is A) reduced risk because the bank assures the creditworthiness of the buyer. B) reduced risk because the bank assumes the costs. C) greater customer loyalty. D) improved buyer satisfaction.

Q: (p. 320) Some regulations stop firms from making products in harmful ways, such as, by exposing workers to danger or by releasing pollutants. This is an example of the government trying to: A. provide information. B. resolve national and global problems. C. regulate socially desirable production methods. D. regulate special customers.

Q: (p. 320) When the Department of Agriculture sets standards for and inspects foods entering the production process, it is: A. regulating socially desirable goods and services. B. resolving national and global problems. C. regulating to protect special interests. D. regulating socially desirable production methods.

Q: In global trade, a ________ is a written agreement by a bank to pay the seller, on account of the buyer, a sum of money upon presentation of certain documents. A) trade card payment B) letter of credit C) micropayment D) bank check

Q: Special-purpose payment cards issued to a company's employees to be used solely for purchasing nonstrategic materials and services up to a preset dollar limit best defines A) purchasing cards. B) smart cards. C) mobile cards. D) desk cards.

Q: (p. 319) When a factory dumps toxic waste into a river and pollutes the river, the costs borne by society in order to clean up the mess is called a(n): A. externality. B. internal diseconomy. C. internal economy. D. natural monopoly.

Q: Among the forms of online B2B payments, the use of ________ is second only to ACH in terms of frequency of use. A) letters of credit B) purchasing cards C) Fedwire, or wire transfer D) EDI

Q: (p. 319) Costs of production borne not by the enterprise that causes them but by society are called: A. internal diseconomies. B. internal economies. C. benefits. D. externalities.

Q: EIPP models include each of the following except A) consolidator. B) seller direct. C) buyer direct. D) intermediate.

Q: (p. 319) If dominating companies in an industry cut prices until competitors leave the market, and then raise prices again, they are engaging in: A. destructive competition. B. pure competition. C. monopolistic competition. D. perfect competition.

Q: Presenting and paying B2B invoices online best defines A) EIPP. B) NOC. C) POP. D) ACH.

Q: (p. 319) A local electric company that, without government regulation, restricts output and raises price without fear of competition is a typical example of: A. an oligopoly. B. a natural monopoly. C. pure competition. D. monopolistic competition.

Q: Unlike the physical supply chain, inefficiencies characterize the financial supply chains of most companies. Factors that create these inefficiencies include each of the following except A) the time required to create, transfer, and process paper documentation. B) the cost and errors associated with manual creation and reconciliation of documentation. C) disputes arising from inaccurate or missing data. D) too much transparency in inventory and cash positions when goods are in the supply chain.

Q: (p. 319) When one company supplies the entire market for a good or service more cheaply than a combination of smaller firms, it has: A. an oligopoly. B. pure competition. C. a natural monopoly. D. monopolistic competition.

Q: The provision of financial services, in small amounts of money, to poor or low-income clients, including consumers and the self-employed best describes A) peer-to-peer loans. B) microfinance. C) low-risk mobile investments. D) microloans.

Q: (p. 339) Measuring the benefits of federal regulation is easier than calculating the costs of these regulations.

Q: Types of mobile payments include each of the following except A) EIPP payments. B) POS payments. C) remote payments. D) mobile proximity payments.

Q: (p. 338) The impact of a regulation on employment, productivity, and innovation is a direct and easy way to calculate the costs of regulation.

Q: E-check processing benefits include A) reducing the float period and the number of checks that bounce because of insufficient funds. B) speeding the checkout process for consumers. C) improving the efficiency of the deposit process for merchants and financial institutions. D) all of the above.

Q: (p. 337) One way to characterize the cost of regulation is to calculate its total dollar cost.

Q: The nationwide batch-oriented electronic funds transfer system that provides for interbank clearing of electronic payments for participating financial institutions is called the A) Automated Clearing House Network. B) Federal Reserve System. C) E-bill Presentment and Payment Network. D) Receiving Depository Financial Institution.

Q: (p. 335) The Interstate Commerce Commission requires each agency to set up an adjudication process leading to trial before an administrative law judge.

Q: Which of the following is the NACHA system where checks are collected at checkout counters and later converted into e-checks? A) POP B) NOS C) EPROM D) BOC

Q: (p. 334) Congress not only passes and amends laws but also approves presidential nominees as head regulators and makes appropriations to agencies.

Q: Basic micropayment models include each of the following except A) stored value. B) wholesale. C) subscriptions. D) direct payment.

Q: (p. 333) Presidents have formal control over rulemaking by independent agencies.

Q: The basic micropayment model where micropayments are added to a monthly bill for existing services best describes A) subscriptions. B) stored value. C) direct payment. D) aggregation.

Q: (p. 332) Guidance is information published in nonbinding documents like memoranda and circulars intended to clarify official regulations.

Q: Small online payments, typically under $10, are referred to as ________. A) e-micropayments B) e-minipayments C) automated payments D) contactless payments

Q: (p. 331) The Code of Federal Regulations is a daily government publication containing proposed rules, final rules, and notice of other actions by federal regulatory agencies.

Q: Payroll cards, government benefit cards, and prepaid debit cards are examples of ________ cards. A) closed-loop B) open-loop C) contactless D) EEPROM

Q: Single-purpose cards issued by a specific merchant or merchant group that can only be used to make purchases from that merchant or merchant group best describes A) location-based cards. B) dedicated cards. C) open-loop cards. D) closed-loop cards.

Q: (p. 329) A policy is a decree issued by an agency to implement a law passed by Congress.

Q: A ________ is a card that has monetary value loaded onto it and is usually rechargeable. A) contact card B) contactless card C) stored-value card D) closed loop card

Q: (p. 328) Statutes rarely contain all the specific rules needed to assure that their intended purpose is achieved.

Q: Which of the following is the initiative where all EU banks agreed to use the same basic bank card standard, enabling the use of credit and debit cards throughout the EU? A) EPROM B) SEPA C) EUMI D) MCI

Q: (p. 327) Regulation is the effort by governments to achieve economic or social outcomes by directing the behavior of citizens, groups, and corporations.

Q: The overall implementation and use of contactless payment cards has been A) slow. B) rapid. C) steady. D) declining.

Q: (p. 326) The Emergency Economic Stabilization Act prohibited federal regulators from exchanging funds for an ownership interest in banks.

Q: If someone steals a smart card, the thief is usually out of luck, with the major exception of ________ used for retail purchases. A) contact cards B) contactless cards C) EPROM cards D) EEPROM cards

Q: (p. 325) The removal or substantial reduction of the body of regulation covering an industry is known as deregulation.

Q: The largest demand for smart cards continues to come from A) the Asia-Pacific region. B) Europe. C) North America. D) South America.

Q: (p. 324) A corporate agency is a regulatory agency in the executive branch run by a single administrator.

Q: Smart cards that have erasable memory and are modifiable best describe A) contact cards. B) contactless cards. C) EPROM cards. D) EEPROM cards.

Q: (p. 323) Franklin D. Roosevelt introduced the Fair Deal, a series of proposed actions in the fields of economic development and social welfare.

Q: A(n) ________ has two separate chips embedded in the card (contact and contactless), which eliminates the need to carry multiple cards to support the various smart card readers and applications. A) dual-interface smart card B) multi-debit card C) hybrid smart card D) RFID card

Q: Which of the following activates and reads the contents of the chip on a smart card, usually passing the information on to a host system? A) cloud reader B) transmit reader C) smart card reader D) cube reader