LaudonEss6_TIF_ch04

LaudonEss6_TIF_ch04 - Chapter 4 The Digital Firm:...

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Chapter 4 The Digital Firm: Electronic Business and Electronic Commerce 4- 1 Chapter 4 The Digital Firm: Electronic Business and Electronic Commerce True-False Questions 1. Internet technology is the key enabling technology for the digital integration of the modern company. Answer: True Difficulty: Easy Reference: p. 116 2. A complete change of mindset is required for firms to implement electronic commerce and electronic business successfully. Answer: True Difficulty: Easy Reference: p. 116 3. Transaction costs are higher in Internet business. Answer: False Difficulty: Easy Reference: p. 117 4. One advantage of using Internet technology is that it provides the infrastructure to allow information to flow seamlessly from one part of the organization to another. Answer: True Difficulty: Medium Reference: p. 117 5. The Internet can replace existing distribution channels or extend them. Answer: True Difficulty: Medium Reference: p. 117 6. The Internet breaks the traditional link between the flow of the product and the flow of product-related information. Answer: True Difficulty: Easy Reference: p. 118 7. Information asymmetry refers to the situation where the relative bargaining power of two parties in a transaction is determined by one party in the transaction possessing more information essential to the transaction than the other party. Answer: True Difficulty: Medium Reference: p. 118 8. The time and money spent locating a suitable product and determining the best price for that product defines location costs. Answer: False Difficulty: Medium Reference: p. 118 9. The use of the Web has increased information asymmetry between sellers and buyers. Answer: False Difficulty: Medium Reference: p. 118 10. Before the Internet, businesses had to make tradeoffs between the richness and the reach of information.
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4-2 The Digital Firm: Electronic Business and Electronic Commerce Chapter 4 Answer: True Difficulty: Easy Reference: p. 119 11. The transaction broker Internet business model sells physical products directly to consumers or to individual businesses. Answer: False Difficulty: Medium Reference: p. 120 12. A banner ad opens automatically and does not disappear until the user clicks on it. Answer: False Difficulty: Medium Reference: p. 121 13. A major source of revenue for online communities is providing ways for corporations to target customers. Answer: True Difficulty: Easy Reference: p. 121 14. A portal is a graphic display on a Web page that, when clicked, takes the viewer to another Web page. Answer: False Difficulty: Medium Reference: p. 121 15. Some companies use internal portals to give employees streamlined access to specialized information resources. Answer: True Difficulty: Easy Reference: p. 121 16. The three major e-commerce categories are bricks-and-mortar, pure-play, and syndicators. Answer: False
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This note was uploaded on 06/09/2011 for the course CIS 101 taught by Professor Irenechen during the Three '11 term at Southern Queensland.

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LaudonEss6_TIF_ch04 - Chapter 4 The Digital Firm:...

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