Q&A Hero

Q: Private and public are two types of e-marketplaces.

Q: (p. 15) Which of the following statements about the countervailing forces model is true? A. It represents primarily the perspective of business critics. B. It reflects the BGS relationship in Western industrialized nations. C. It stands for the belief that government intervention in the market is undesirable. D. It assumes that individuals can own private property and freely risk investments.

Q: A single-sided e-marketplace is a private e-marketplace in which one company makes purchases from invited suppliers.

Q: (p. 15) Which of the following models suggests that there is an exchange of power among the multiple elements in society and does not attribute constant dominance to any one element? A. The countervailing forces model B. The stakeholder model C. The market capitalism model D. The dominance model

Q: Travelers using airline Web sites to book their flights directly, without the use of travel agents, is resulting in the reintermediation of travel agents.

Q: Disintermediation is the elimination of intermediaries between sellers and buyers.

Q: (p. 14) _____ is an ideology which says that workers should revolt against property-owning capitalists who exploit them, replacing economic and political domination with more equal and democratic socialist institutions. A. Populism B. Marxism C. Laissez-faire D. Global corporatism

Q: Individuals are the largest consumers, accounting for more than 85 percent of EC volume and value activities.

Q: (p. 13) _____ is a recurrent spectacle in which common people who feel oppressed or disadvantaged in some way seek to take power from ruling elite that thwarts fulfillment of the collective welfare. A. Populism B. Collectivism C. Laissez-faire D. Capitalism

Q: In marketing, an intermediary is a third party that operates between manufacturers and buyers. Intermediaries of all kinds offer their services on the Web.

Q: (p. 13) The _____ model believes that it is undemocratic for corporations and the powerful elite to control a system that enriches a few at the expense of many. A. dominance B. market capitalism C. stakeholder D. countervailing forces

Q: The emergence of electronic marketplaces has resulted in lower information search time and costs for buyers.

Q: (p. 13) Proponents of the dominance model: A. focus on the defects and inefficiencies of capitalism. B. believe that corporations are exposed to societal pressures holding them responsible. C. believe that market forces are adequate to ensure ethical management. D. emphasize that businesses and governments are dominated by the masses.

Q: Dynamic pricing is the most common way customers purchase items online.

Q: (p. 12) In which of the following models do business and government govern the great mass of people? A. The countervailing forces model B. The stakeholder model C. The market capitalism model D. The dominance model

Q: Intermediation is the process of buying materials, products, and services directly from suppliers, distributors, or the government.

Q: (p. 11) _____ believed that owners of capital exploited workers and promoted systems of rising inequality. A. Karl Marx B. Vladimir Lenin C. Bernard Mandeville D. Adam Smith

Q: (p. 11) The economic philosophy that rejects government intervention in markets is called __. A. socialism B. laissez-faire C. communism D. totalitarianism

Q: A dashboard is a graphical display of performance results.

Q: (p. 11) The perspective of the market capitalism model leads to the conclusion that: A. government regulation should be limited. B. it is the responsibility of businesses to correct social problems. C. businesses can get away with inferior quality goods and higher profits. D. the ethical duty of management is to promote the interests of all stakeholders.

Q: Eastern Mountain Sports uses Web 2.0 tools to increase collaboration, information sharing, and communication among their employees, suppliers, and customers.

Q: (p. 11) Which of the following statements about the laissez-faire concept is true? A. It stands for the belief that government intervention in the market is desirable. B. It lessens the efficiency with which free enterprise operates to benefit consumers. C. It is necessary because market forces are benevolent. D. It opines that businesses are responsible for correcting social problems.

Q: Identify and briefly describe five typical EC business models.

Q: (p. 11) Which of the following is an assumption of the market capitalism model? A. Government intervention in economic life is significant. B. Individuals can own private property and freely risk investments. C. Consumers have limited knowledge about products and prices. D. Limited information prevents individuals from making completely rational decisions.

Q: What is a revenue model? Identify four major revenue models.

Q: (p. 10) ________ refers to a market economy in which the dominant businesses are large firms run by salaried managers, not smaller firms run by owner-entrepreneurs. A. Socialism B. Managerial capitalism C. Marxism D. Egalitarianism

Q: Identify the three major business pressures categories. For each category, identify two main types of business pressures.

Q: (p. 10) Which of the following was an observation made by Adam Smith? A. Corporations are insulated from pressures holding them responsible. B. The desire to trade for mutual advantage lies deep in human instinct. C. Common people who feel disadvantaged in some way seek to take power from the ruling elite. D. To maintain broad public support, business must adjust to social, political, and economic forces.

Q: (p. 9) _____ is an economic ideology with a bundle of values including private ownership of means of production, the profit motive, free competition, and limited government restraint in markets. A. Capitalism B. Socialism C. Communism D. Democracy

Q: Briefly describe the three elements of the digital world.

Q: (p. 9) Who wrote "The Wealth of Nations"? A. Karl Marx B. mile Durkheim C. Adam Smith D. Max Weber

Q: List and briefly discuss three of the five common classifications of EC by the nature of the transaction.

Q: (p. 9-16) Which of the following is NOT one of the basic BGS models? A. The market capitalism model B. The dominance model C. The collective business model D. The stakeholder model

Q: The success of the entrepreneurial company JetPens was due to keeping costs low by each of the following methods except A) using open source free software. B) advertising via e-mail. C) giving away free samples via social networks. D) using smart key words to rank high with search engines.

Q: (p. 9) A _____ emerges when people move beyond subsistence production to production for trade, and markets take on a more central role. A. centrally planned economy B. welfare economy C. market economy D. socialist economy

Q: Each of the following is a non-technological limitation of EC except A) software development tools are still evolving. B) lack of trust in EC and in unknown sellers hinders buying. C) people do not yet sufficiently trust paperless, faceless transactions. D) online fraud is increasing.

Q: (p. 9) In the _____ model, the _____ acts as a buffer between business and non-market forces. A. stakeholder; market B. countervailing forces; government C. dominance; management D. market capitalism; market

Q: Which of the following is a technological limitation of EC? A) security and privacy concerns that deter customers from buying B) difficulty obtaining venture capital C) order fulfillment requirements of large-scale B2C D) unresolved taxation, public policy, and legal issues

Q: (p. 9) Which of the following models describes business as responding primarily to economic forces in society? A. The market capitalism model B. The stakeholder model C. The dominance model D. The countervailing forces model

Q: Each of the following is a benefit of EC to society except A) more public services. B) closing the digital divide. C) fewer permits and less tax. D) improving homeland security.

Q: (p. 8) Which of the following statements about social contracts is true? A. Businesses are not obligated to fulfill social contracts. B. It codifies the expectations of business from society and other stakeholders. C. It is as clear-cut as the economic forces a business faces. D. It is partly expressed in law, but also resides completely in social values.

Q: Which of the following is not one of the benefits that EC provides to consumers? A) global reach B) instant delivery C) enable telecommuting D) ubiquity

Q: (p. 8) The basic agreement between a business and its society that defines the broad duties of the business that are needed to retain the support of society is called a(n) _______. A. social contract B. ideology C. institution D. scheme

Q: Benefits of EC to organizations include each of the following except A) cost reduction. B) closing the digital divide. C) supply chain improvements. D) efficient procurement.

Q: (p. 7) The tangible artifacts of a society that shape and are shaped by ideas and institutions are called _______. A. material things B. markets C. customs D. services

Q: Major barriers to EC include each of the following except A) competition. B) lack of potential customers. C) implementation difficulties. D) lack of technology skills.

Q: (p. 5) Which of the following statements is true about ideologies? A. All ideologies have the power to organize collective activity. B. Ideologies are structures and processes that authoritatively make and apply policies and rules. C. Ideologies are essential to coordinate the work of individuals who have no direct relationship with each other. D. Secular and sacred ideologies are distinct from one another and rarely overlap.

Q: According to the ________ model, an organization can increase brand awareness or even generate sales by Web-based word-of-mouth marketing or promoting a product or service to other people. A) electronic tendering systems B) online direct marketing C) name-your-own-price D) viral marketing

Q: (p. 5) A formal pattern of relations that link people together in order to accomplish a goal is a(n) ________. A. society B. idea C. institution D. ideology

Q: Large organizational buyers make large-volume or large-value purchases through ________, also known as reverse auctions. A) electronic tendering systems B) online direct marketing C) name-your-own-price models D) viral marketing

Q: (p. 5) A set of values that create a specific view of the world is a(n) _______ A. institution B. ideology C. society D. economy

Q: As identified by Amit and Zott (2001) which of the following is not one of the four sets of values that are created by e-business? A) financial efficiency B) search and transaction cost efficiency C) complementarities D) novelty

Q: (p. 5) An enduring belief about which fundamental choices in personal and social life are "correct" is a(n) _______. A. value B. institution C. function D. process

Q: According to the ________ revenue model, companies receive commissions for referring customers to others' EC websites. A) advertising fees B) subscription fees C) affiliate fees D) transaction fees

Q: (p. 5) The network of human relations that consists of ideas, institutions, and material things is a(n) ________. A. ideology B. society C. theory D. government

Q: According to the ________ revenue model, customers pay a fixed amount, usually monthly, to receive some type of service. A) subscription fees B) transaction fees C) advertising fees D) affiliate fees

Q: A method of doing business by which a company can generate revenue to sustain itself best defines A) marketing strategy. B) business model. C) value chain. D) business plan.

Q: (p. 5) The structures and processes in a society that authoritatively make and apply policies and rules are called ________. A. ideas B. ideologies C. governments D. institutions

Q: (p. 4) A profit-making activity that provides products and services that are intended to satisfy human needs is called a(n) _______. A. business B. NGO C. government D. society

Q: Each of the following is an essential capability that helps drive EC except A) providing efficient and effective business transactions. B) facilitating company consolidations. C) customizing products and personalizing services. D) sharing information and knowledge.

Q: (p. 21) In addition to unprecedented wealth creation and new material comforts, capitalism also brings in risks of economic shocks.

Q: According to the Business Environment and Performance Impact Model, ________ provide support to organizations' activities and to the resultant performance, countering business pressures. A) EC and IT B) missions and strategies C) core competencies and critical response activities D) markets and government

Q: (p. 20) Theories simplify and organize areas of knowledge by describing patterns or regularities in the subject matter.

Q: Societal business pressure examples include A) increased power of the consumer. B) global economy. C) compliance. D) rapid technological obsolescence.

Q: (p. 19) A concern with the stakeholder theory is that it is not always clear who or what a legitimate stakeholder is.

Q: According to the Business Environment and Performance Model, drivers for organizations include A) the organization's mission. B) problems from the business environment. C) the organization's strategy. D) all of the above.

Q: (p. 17) Governments are secondary stakeholders to corporations.

Q: (p. 16) The stakeholder model states that the immediate priority of a corporation is to benefit its investors.

Q: Because the pace of change and level of uncertainty in the marketplace are expected to accelerate, organizations are A) unable to react quickly enough to threats and opportunities. B) operating under increasing pressures to produce more products, faster, and with fewer resources. C) making fewer decisions and/or decisions less frequently. D) considering less information when making decisions.

Q: A major gateway through which employees, business partners, and the public can enter a corporate website best defines A) corporate portal. B) intranet. C) extranet. D) social network.

Q: (p. 16) The countervailing forces model is essentially the same as the market capitalism model.

Q: The e-commerce activities conducted in social networks and/or by using social software best describes A) virtual commerce. B) social commerce. C) consumer commerce. D) enterprise commerce.

Q: (p. 15-16) The countervailing forces model accepts the absolute primacy of business as in the dominance model.

Q: A category of Internet applications that help connect friends, business partners, or individuals with specific interests by providing free services such as photo presentation, e-mail, blogging, and so on using a variety of tools best defines A) social networking. B) enterprise networks. C) community networks. D) intranets.

Q: (p. 15) The countervailing forces model states that society is governed primarily by economic forces.

Q: According to O'Reilly (2005), which Web 2.0 level's applications work as well offline as online? A) Level 0 B) Level 3 C) Level 1 D) Level 2

Q: (p. 13) The dominance model believes that society is undemocratic in its operations.

Q: According to O'Reilly (2005), which Web 2.0 level's applications exist only on the Internet, deriving their effectiveness from interhuman connections and from the network effects that Web 2.0 makes possible and growing in effectiveness as people make more use of them? A) Level 0 B) Level 3 C) Level 1 D) Level 2

Q: (p. 13) The dominance model states that corporations act primarily for the good of most of the people in the society.

Q: The second generation of Internet-based services that lets people collaborate and share information online in new ways, such as social networks, wikis, communication tools, and folksonomies, best describes A) Virtual Web. B) Media Web. C) Web 2.0. D) Social Web.