Information Systems Essentials International Edition 6th Edition by George Walter Reynolds - Test Bank

Information Systems Essentials International Edition 6th Edition by George Walter Reynolds – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 05: Electronic and Mobile Commerce and Enterprise Systems

 

TRUE/FALSE

 

1. A charge card, such as American Express, carries no preset spending limit, and each month the user can pay all or part of the amount owed.

 

ANS:  F                    PTS:   1

 

2. A certificate authority is an attachment to an e-mail message or data embedded in a Web site that verifies the identity of a sender or a Web site.ha

 

ANS:  F                    PTS:   1

 

3. P-cards can be used for a variety of purposes, including storing a user’s financial facts, health insurance data, credit card numbers, and network identification codes and passwords.

 

ANS:  F                    PTS:   1

 

4. The B2B market is considerably smaller than the B2C market although it is growing more rapidly.

 

ANS:  F                    PTS:   1

 

5. The length of the sales process for typical B2B sale is much faster than for the typical C2C sale.

 

ANS:  F                    PTS:   1

 

6. The market for mobile commerce in North America is maturing much later than in Western Europe and Japan.

 

ANS:  T                    PTS:   1

 

7. The American Consumer Satisfaction Index methodology developed at Ohio State is used to rate B2C Web sites.

 

ANS:  F                    PTS:   1

 

8. A key sector of wholesale e-commerce is spending on MRO goods and services.

 

ANS:  T                    PTS:   1

 

9. An electronic exchange enables competitors and suppliers to buy and sell goods, trade market information, and run back-office operations.

 

ANS:  T                    PTS:   1

 

10. The practice of market segmentation divides the pool of potential suppliers into subgroups usually defined in terms of demographic characteristics.

 

ANS:  F                    PTS:   1

 

 

11. AdMob is a mobile advertising provider that serves up ads for displays on B2B Web sites.

 

ANS:  F                    PTS:   1

 

12. Mobile coupon aggregators provide several promotions from a single retailer to lots of mobile phone users.

 

ANS:  F                    PTS:   1

 

13. Although conversion to an e-commerce or m-commerce system enables organizations to reduce the cost of business, it seldom results in increased accuracy of order processing and order fulfillment.

 

ANS:  F                    PTS:   1

 

14. The two most widely used Web server software packages are Apache HTTP Server and Microsoft Internet Information Services.

 

ANS:  T                    PTS:   1

 

15. The hand-held devices used for m-commerce have few, if any, limitations that complicate their use.

 

ANS:  F                    PTS:   1

 

16. Digital certificates verify both purchaser and supplier identities in an e-commerce transaction.

 

ANS:  T                    PTS:   1

 

17. The Secure Sockets Layer communicates protocol secures sensitive data involved in e-commerce but without the use of encryption.

 

ANS:  F                    PTS:   1

 

18. Transaction processing systems support the capture and processing of detailed data necessary to update the fundamental business operations of the organization.

 

ANS:  T                    PTS:   1

 

19. Transaction processing systems provide a high degree of support for management decision making.

 

ANS:  F                    PTS:   1

 

20. With an OLTP system, each transaction is accumulated over a period of time and prepared for processing in a large batch of similar transactions.

 

ANS:  F                    PTS:   1

 

21. Capturing and gathering all data necessary to complete the processing of transactions is called data input.

 

ANS:  F                    PTS:   1

22. An enterprise system ensures that the information needed for a single business function and all levels of management within that function is available.

 

ANS:  F                    PTS:   1

 

23. Only the largest of the Fortune 500 organizations can afford or justify the expense of implementing an ERP system.

 

ANS:  F                    PTS:   1

 

24. For an organization implementing an ERP system, there is a major amount of effort required to load existing data from various sources into the new ERP database.

 

ANS:  T                    PTS:   1

 

25. Data mapping is the examination of each data item required for a new ERP system and determining the number of bytes required for data storage.

 

ANS:  F                    PTS:   1

 

26. Supply chain management software automates and integrates the functions of sales, marketing, and service in an organization.

 

ANS:  F                    PTS:   1

 

27. Financial accounting consists of capturing and recording all the transactions that affect a company’s financial state and then using these documented transactions to prepare financial statements to external decision makers.

 

ANS:  T                    PTS:   1

 

28. Customer relationship management software helps plan, execute, and control all the activities involved in raw material sourcing and procurement, conversion of raw materials to finished products, and the warehousing and delivery of finished product to customers.

 

ANS:  F                    PTS:   1

 

29. SMEs are exploring the use of hosted software to acquire, use, and benefit from new software even though it means extra complexity and high start-up costs.

 

ANS:  F                    PTS:   1

 

30. Fortunately, disparities in IS infrastructure is not one of the international issues associated with the use of enterprise systems.

 

ANS:  F                    PTS:   1

 

 

MULTIPLE CHOICE

 

1. It is estimated that e-commerce contributes about _____ percent to the total U.S. gross domestic product.

a.	0.2%	c.	2.1%
b.	1.2%	d.	3.2%

 

 

ANS:  C                    PTS:   1

 

2. The elimination of intermediate organizations between the producer and the consumer is called _____

a.	disintermediation	c.	market segmentation
b.	social networking	d.	none of the above

 

 

ANS:  A                    PTS:   1

 

3. _____ is a subset of e-commerce that involves electronic transactions between consumers and a third part to facilitate the process.

a.	B2B	c.	C2C
b.	B2C	d.	G2C

 

 

ANS:  C                    PTS:   1

 

4. U.S. m-commerce sales for 2010 are expected to be in the neighborhood of _____.

a.	$1.2 billion	c.	$3.6 billion
b.	$2.4 billion	d.	$4.8 billion

 

 

ANS:  B                    PTS:   1

 

5. A(n) _____ is a single Web site that offers many products and services at one Internet location.

a.	Web portal	c.	e-boutique
b.	cybermall	d.	none of the above

 

 

ANS:  B                    PTS:   1

 

6. _____ divides the pool of potential customers into subgroups usually defined in terms of demographic characteristics.

a.	Disintermediation	c.	Market segmentation
b.	Social networking	d.	Market augmentation

 

 

ANS:  C                    PTS:   1

 

7. Mobile coupons _____.

a.	have a much higher redemption rate than paper coupons	c.	can be redeemed by scanning the barcode displayed on a Web-enabled cell phone
b.	can be sent to mobile shoppers by numerous mobile coupon aggregators	d.	all of the above

 

 

ANS:  D                    PTS:   1

 

 

8. Conversion to an e-commerce or m-commerce system enables an organization to _____.

a.	more easily implement ERP systems	c.	increase the prices of its goods and services
b.	increase the accuracy of order processing and order fulfillment	d.	all of the above

 

 

ANS:  B                    PTS:   1

 

9. Poor Web site performance frequently leads to _____.

a.	inadequate customer service	c.	abandonment of e-commerce Web sites
b.	lost orders	d.	all of the above

 

 

ANS:  D                    PTS:   1

 

10. Authentication technologies are used by many organizations to _____.

a.	verify the accuracy of their product descriptions and prices	c.	confirm the URL of their suppliers’ Web sites
b.	verify the ship to address of their online customers	d.	confirm the identity of the user requesting access to information or assets

 

 

ANS:  D                    PTS:   1

 

11. A(n) _____ card is issued to select employees to help streamline the traditional purchase order and invoice payment process.

a.	p	c.	credit
b.	debit	d.	charge

 

 

ANS:  A                    PTS:   1

 

12. The MasterCard MoneySend service and Obopay are developing a service that enables people to transmit money to one another via _____.

a.	e-mail	c.	PayPal
b.	EDI	d.	text messaging

 

 

ANS:  D                    PTS:   1

 

13. With _____, business transactions are accumulated over a period of time for processing in a single unit.

a.	online transaction processing	c.	batch processing
b.	real-time transaction processing	d.	enterprise resource processing

 

 

ANS:  C                    PTS:   1

 

14. _____ involves updating one or more databases with new transactions.

a.	Data manipulation	c.	Date input
b.	Data storage	d.	Data collection

 

 

ANS:  B                    PTS:   1

 

15. The process used by leading companies to complete a business process in the most efficient and effective manner are called _____.

a.	best practices	c.	current best approach
b.	streamlined processes	d.	none of the above

 

 

ANS:  A                    PTS:   1

16. _____ involves reentering data that was not typed or scanned correctly.

a.	data editing	c.	data manipulation
b.	data correction	d.	data collection

 

 

ANS:  B                    PTS:   1

 

17. In an order processing system, a(n) _____ is printed at the warehouse from which the order is to filled so that workers can correctly fill the order.

a.	picklist	c.	invoice
b.	customer order	d.	receiving report

 

 

ANS:  A                    PTS:   1

 

18. When a(n) _____ arrives from a supplier, it is matched to the original order and the receiving report and a check is generated if all data is complete and consistent.

a.	order	c.	pick list
b.	invoice	d.	none of the above

 

 

ANS:  B                    PTS:   1

 

19. A key feature on an enterprise resource planning system is that _____.

a.	all transactions are processed in online transaction processing mode	c.	it is fully integrated with all of the organization’s e-commerce systems
b.	it employs a database of key operational and planning information that can be shared by all	d.	all of the above

 

 

ANS:  B                    PTS:   1

 

20. The number and types of data items that must be loaded into a new ERP system depend on the _____ of the ERP implementation.

a.	scope	c.	cost
b.	schedule	d.	none of the above

 

 

ANS:  A                    PTS:   1

 

21. Many SMEs elect to implement _____ ERP systems.

a.	proprietary	c.	custom coded
b.	in-house developed	d.	open source

 

 

ANS:  D                    PTS:   1

 

22. The _____ refines the production plan defined by the demand management process to develop a detailed production schedule specifying details such as which item to produce first and when production should be switched from one item to another.

a.	sales and operation plan	c.	material requirement plan
b.	detailed scheduling plan	d.	none of the above

 

 

ANS:  B                    PTS:   1

 

23. Purchasing uses the information from the _____ to place purchase orders for raw materials.

a.	sales and operations plan	c.	materials requirement plan
b.	detailed scheduling plan	d.	none of the above

 

 

ANS:  C                    PTS:   1

24. One of the functional units likely to benefit from use of a customer relationship management system is _____.

a.	Market research	c.	Quality control
b.	Product development	d.	All of the above

 

 

ANS:  D                    PTS:   1

 

25. The _____ plan takes demand and current inventory levels into account and determines specific product items that need to be produced and when in order to meet the forecast future demand.

a.	sales and operation plan	c.	detailed scheduling plan
b.	demand plan	d.	material requirement plan

 

 

ANS:  A                    PTS:   1

 

COMPLETION

 

1. With _____ software, anyone can see and modify the source code to customize it to meet their needs.

 

ANS:  open source

 

PTS:   1

 

2. The systematic process for developing a production plan for a manufacturing organization starts with _____ to develop an estimate of future customer demand.

 

ANS:  sales forecasting

 

PTS:   1

 

3. The recording of a sale and the creation of an accounts receivable entry indicating that a customer owes money for goods received is an example of _____ accounting.

 

ANS:  financial

 

PTS:   1

 

4. The objective of a CRM system is to capture data about every _____ a company has with a customer through every channel and store it.

 

ANS:  contact

 

PTS:   1

 

5. _____ is the conducting of business activities electronically over computer networks.

 

ANS:  E-commerce

 

PTS:   1

 

 

6. _____ is a subset of e-commerce where all the participants are organizations.

 

ANS:  Business-to-business

 

PTS:   1

 

7. Government-to-consumer, government-to-business, and government-to- _____ are all forms of e-Government, each with different applications.

 

ANS:  government

 

PTS:   1

 

8. ICANN created a _____ domain to help attract mobile users to the Web.

 

ANS:  .mobi

 

PTS:   1

 

9. _____ is the direct sale of products or services to consumers through electronic storefronts.

 

ANS:  Electronic retailing

 

PTS:   1

 

10. A(n) _____ joins competitors and suppliers alike to buy and sell goods, trade market information, and run back office operations.

 

ANS:  Electronic exchange

 

PTS:   1

 

11. Mobile ad impressions are generally bought at a cost per thousand, cost per click, or cost per _____.

 

ANS:

action

 

PTS:   1

 

12. The amount of storage capacity and computing power required of the e-commerce Web server depends on two things: the software that must run on the server and the _____.

 

ANS:  volume of transactions that must be processed

 

PTS:   1

 

13. An e-commerce organization must have adequate hardware _____ to avoid a major business disruption in the case of a failure of the primary Web server.

 

ANS:  backup

 

PTS:   1

 

14. The two most widely used Web server software packages are Apache HTTP Server and Microsoft _____.

 

ANS:  Internet Information Services

 

PTS:   1

 

15. _____ certificates are used to ensure that e-commerce transactions are made between the intended parties.

 

ANS:  Digital

 

PTS:   1

 

16. Both purchaser and supplier identities are guaranteed by a third party organization called a(n) _____.

 

ANS:  certificate authority

 

PTS:   1

 

17. With the Secure Sockets Layer communication protocol, the data is always _____ ensuring that your transactions are not subject to interception.

 

ANS:  encrypted

 

PTS:   1

 

18. All credit card customers are protected from paying more than _____ for fraudulent transactions.

 

ANS:  $50

 

PTS:   1

 

19. Unlike a credit card, a smart card does not shown your account number or _____ anywhere on the card.

 

ANS:  signature

 

PTS:   1

 

20. When paying by cell phone, the payments can be linked to your bank account or added to your _____.

 

ANS:  phone bill

 

PTS:   1

 

21. Transaction processing systems typically involve the processing of _____ input and output than MIS systems.

 

ANS:  more

 

 

PTS:   1

22. With _____ processing, each transaction is processed immediately, without the delay of accumulating transactions into a batch.

 

ANS:  online transaction

 

PTS:   1

 

23. Many organizations have limited _____ among its TPS systems which requires that data into to one TPS must be printed out and manually reentered into other systems.

 

ANS:  integration

 

PTS:   1

 

24. TPS systems capture and process data that describe fundamental business _____.

 

ANS:  transactions

 

PTS:   1

 

25. Data _____ ensures the validity and completeness of input data.

 

ANS:  editing

 

PTS:   1

 

ESSAY

 

1. Define electronic commerce and identify its various subsets.

 

ANS:

Electronic commerce is the conducting of business activities electronically between companies (business-to-business), companies and consumers (business-to-consumer), consumers and other consumers (consumer-to-consumer), public sector and business (government-to-business), public sector to citizens (government-to-citizen).  Another subset of electronic commerce is mobile commerce which relies on the use of mobile, wireless devices to place orders and conduct business.

 

PTS:   1

 

2. Why is m-commerce maturing much latter in North America than in Western Europe and Japan?

 

ANS:

In North America, responsibility for network infrastructure is fragmented among many providers, consumer payments are usually made by credit card, and many Americans are unfamiliar with mobile data services.  In most Western European countries, communicating via wireless devices is common, and consumers are much more willing to use m-commerce.  Japanese consumers are generally enthusiastic about new technology and are much more likely to use mobile technologies for making purchases.

 

PTS:   1

3. Identify and briefly discuss the key technology infrastructure components required to support e-commerce.

 

ANS:

Successful implementation of e-commerce requires significant changes to existing business processes and substantial investment in IS technology.  Key infrastructure components include hardware, Web server software, and e-commerce software.  A Web server platform complete with the appropriate software and sufficient storage capacity and computing power are required.Web server software is needed to perform fundamental services including security and identification, retrieval and sending of Web pages, Web site tracking, Web site development, and Web page development.  E-commerce software is need to create and update the product catalog, perform product configuration , shipping cart facilities to track items selected for purchase, e-commerce transaction processing, and Web traffic data analysis.

 

PTS:   1

 

4. Identify the common set of basic transaction processing activities performed by every TPS.

 

ANS:

All TPS systems perform the following activities: data collection, data editing, data correction, data manipulation, data storage, and document production and reports.   Data collection involves capturing and gathering all data necessary to complete the processing of transactions.  Data editing checks the validity and completeness of all data and rejects bad data.  Data correction involves correcting and reentering data that did not pass the date edit checks. Data manipulation is the process of performing calculations and other data transformations related to business transactions.  Data storage involves updating one or more databases with new transactions.  Document production and reports involves generating output records, documents, and reports.

 

PTS:   1

 

5. Define the term CRM system and state its fundamental purpose.

 

ANS:

CRM software automates and integrates the functions of sales, marketing, and service in an organization.  The objective is to capture data about every contact a company has with a customer through every channel and store it in the CRM system so the company can truly understand customer actions.  CRM software helps an organization build a database about its customers that describes relationships in sufficient detail so that management, salespeople, customer service providers, and even customers can access information to match customer needs with product plans and offerings, remind them of service requirements, and know what other products they have purchased.

 

PTS:   1