EC_Quiz 6 - 1. In dealing with exchange members, the...

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1. In dealing with exchange members, the management of the exchange should: a. make certain that the exchange is neutral in its dealings with all members. b. leave the management of day-to-day operations of the exchange to the members. c. strive to maximize exchange revenues through charging the highest possible fees. d. take special care of the companies that share ownership in the exchange. 2. Spot sourcing of direct materials takes place: a. on exchanges which operate without a market maker. b. in vertical exchanges. c. in horizontal exchanges. d. only in virtual exchanges. 3. All of the following are potential sources of revenue for an exchange EXCEPT: a. advertising fees. b. shipping and handling fees. <270> c. fees for services rendered. d. membership fees. 4. An exchange charges an annual fee of $25,000 for all parties who want to trade in the exchange. The revenue model in use by this exchange is the a. transaction fee model b. membership fee model <268> c. fee for service model d. advertising fee model 5. Markets in which several large sellers sell to a large number of buyers are called a. fragmented markets b. seller-concentrated markets c. buyer-concentrated markets d. differentiated markets 6. The concept of liquidity for a B2B exchange is the: a. ease with which information flows between exchange members b. ease with which orders can be placed, processed, and shipped using the exchange c. amount of available cash on hand d. number of buyers and sellers in a market <271> 7. The most attractive industries for a vertical exchange are characterized by: a. stagnant technology b. a market in which a small number of very large orders account for more than half the total market volume per year c. many fragmented buyers and sellers d. a few very large players that totally dominate the industry 8. Brand building is important in B2B exchanges because: a. exchange members typically buy only the best brands of product. b. information flow is poor in most exchanges, making trust of suppliers very important. c. it is easy for exchange members to change to another exchange. <293>
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d. exchange members typically buy products at the lowest cost unless branded. 9. From 2001 to 2006, a majority of e-exchanges: a. devised new methods to increase revenues and profits b. folded due to a lack of customers, cash, or both c. increased in size due to mergers of small e-exchanges d. expanded by adding business partners 10. Attracting large business sellers to public exchanges is often difficult for all of the following reasons EXCEPT: a. it is sometimes difficult to recruit large suppliers b. they are required to pay transaction fees even when they engage in transactions with existing customers c. advertising costs in public exchanges are very expensive <288> d. competitors who are also exchange member may gain access to confidential information 11. When membership fees are the basis for revenue generation in an e-exchange, it has been shown that: a. there should be a fee for every service provided; there should be no free
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This note was uploaded on 09/14/2010 for the course ECOMMERCE 312 taught by Professor Han during the Summer '10 term at St. Louis CC.

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EC_Quiz 6 - 1. In dealing with exchange members, the...

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