Ecommerce Quiz Chapter 12

Analysts predict that B2B e-commerce in the United States will grow by 2020 to approximately:

A) $9 billion.

B) $90 billion.

C) $900 billion.

D) $9 trillion.

D) $9 trillion.

In 2016, the total amount of B2B e-commerce in the United States was approximately:

A) $67 billion.

B) $670 billion.

C) $6.7 trillion.

D) $67 trillion.

C) $6.7 trillion.

________ was/were the first step in the development of B2B e-commerce.

A) Electronic Data Interchange (EDI)

B) Automated order entry systems

C) Computerized inventory databases

D) Digital invoices

B) Automated order entry systems

________ refers to the links that connect business firms with one another to coordinate production.

A) Supply chain

B) B2B e-commerce

C) Vertical market

D) Horizontal market

A) Supply chain

Automated order entry systems:

A) show goods from a single seller.

B) increased the costs of inventory replenishment.

C) are typically owned by the purchasing firm.

D) no longer play an important role in B2B commerce.

A) show goods from a single seller.

Which of the following statements about EDI systems is true?

A) They typically serve vertical markets.

B) They are seller-side solutions.

C) They evolved from private trading exchanges.

D) They still play an important role in B2C commerce.

A) They typically serve vertical markets.

B2B e-commerce websites:

A) are a predecessor of industry consortia.

B) tend to serve horizontal markets.

C) are buyer-side solutions.

D) are considered a type of EDI system.

B) tend to serve horizontal markets.

Which of the following is another name for a private industrial network?

A) industry consortia

B) EDI system

C) PTX

D) PINS

C) PTX

________ are the fastest growing form of B2B e-commerce.

A) R-distributors

B) Exchanges

C) Private industrial networks

D) Industry consortiums

C) Private industrial networks

All of the following are potential benefits of B2B e-commerce except:

A) lower administrative costs.

B) lower search costs.

C) lower price transparency.

D) lower transaction costs.

C) lower price transparency.

Electronic Data Interchange (EDI) began as a(n) ________ system.

A) document automation

B) document exchange

C) invoice generation

D) MRP

A) document automation

All of the following are potential benefits of B2B e-commerce except:

A) increased production flexibility.

B) increased product cycle time.

C) increased opportunities to collaborate with suppliers and distributors.

D) increased visibility and real-time information sharing among all participants in the supply chain network.

B) increased product cycle time.

All of the following have led to the development of outsourcing of manufacturing around the world except:

A) technology.

B) globalization of trade.

C) environmental concerns.

D) high levels of wage disparity between the developed and undeveloped worlds.

C) environmental concerns.

Supply chain ________ refers to differentiating a firm's products or prices based on superior supply chain management.

A) management

B) simplification

C) competition

D) collaboration

C) competition

A(n) ________ market is one that provides expertise and products for a specific industry, such as automobiles.

A) vertical

B) horizontal

C) indirect

D) buyer-biased

A) vertical

The essential characteristic of ________ are they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade.

A) industry communications

B) exchanges

C) Net marketplaces

D) horizontal markets

C) Net marketplaces

What is the first step in the procurement process?

A) negotiate price

B) qualify the seller and its products

C) issue a purchase order

D) search for suppliers

D) search for suppliers

The last step in the procurement process is:

A) sending a remittance payment.

B) sending the invoice.

C) shipping the goods.

D) delivering the goods.

A) sending a remittance payment.

Office supplies are an example of:

A) direct goods.

B) indirect goods.

C) MRO goods.

D) distributed goods.

B) indirect goods.

Most inter-firm trade involves:

A) spot purchasing of direct goods.

B) contract purchasing of indirect goods.

C) contract purchasing of direct goods.

D) spot purchasing of indirect goods.

C) contract purchasing of direct goods.

All of the following are examples of direct goods in the auto industry except:

A) sheet steel.

B) shatter-resistant glass.

C) rubber molding.

D) desktop computers.

D) desktop computers.

An example of an indirect good in the fast-food industry is:

A) mustard.

B) paper napkins.

C) beef.

D) sugar.

B) paper napkins.

An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment.

A) exchange

B) e-distributor

C) e-procurement company

D) industry consortium

A) exchange

An ________ primarily serves businesses that buy direct goods on a spot purchasing basis.

A) e-distributor

B) e-procurement company

C) exchange

D) industry consortium

C) exchange

The liquidity of a market is measured by all of the following except:

A) price transparency.

B) number of buyers and sellers in market.

C) volume of transactions.

D) size of transactions.

A) price transparency.

________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers.

A) Spot

B) Indirect

C) Vertical

D) Bulk

A) Spot

Which of the following statements about B2B marketing is not true?

A) Mobile B2B marketing consumes only 5% of B2B marketing budgets.

B) B2B marketing accounts for over 25% of the total amount spent on digital marketing and advertising.

C) Content marketing is one of the primary and most effective marketing tools in B2B marketing.

D) The disparity between the amount spent on B2B marketing compared to B2C e-commerce reflects the different nature of much of B2B e-commerce when compared to B2C e-commerce.

B) B2B marketing accounts for over 25% of the total amount spent on digital marketing and advertising.

All of the following are current major trends in B2B e-commerce, except:

A) a movement toward implementing highly centralized supply chains to reduce risk.

B) a growing emphasis on the use of business analytics software (business intelligence) to understand very large data sets.

C) a growing emphasis on rapid-response and adaptive supply chains rather than lowest-cost supply chains.

D) an increase in regional manufacturing and supply chains to attempt to combat the risks of far-flung global networks.

A) a movement toward implementing highly centralized supply chains to reduce risk.

All of the following are weaknesses of EDI except:

A) EDI is not well suited for electronic marketplaces.

B) EDI lacks universal standards.

C) EDI does not provide a real-time communication environment.

D) EDI does not scale easily.

B) EDI lacks universal standards.

Which of the following is a method of inventory cost management that seeks to eliminate excess inventory?

A) lean production

B) sustainable production

C) just-in-time production

D) supply chain simplification

C) just-in-time production

Which of the following statements about cloud-based B2B systems is not true?

A) Much of the expense of the system is shifted from the B2B network provider to the firm.

B) B2B network providers charge customers on a demand basis.

C) Network effects apply, enabling the spreading of costs.

D) Cloud-based B2B data networks can be implemented in short periods of time.

A) Much of the expense of the system is shifted from the B2B network provider to the firm.

________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location.

A) Having an adaptive supply chain

B) Tight coupling

C) Supply-chain management

D) Materials requirement planning

B) Tight coupling

Cisco estimates that by 2016, mobile traffic will represent ________% of all business Internet traffic.

A) less than 5

B) around 10

C) around 15

D) over 25

D) over 25

A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems.

A) EDI

B) ERP

C) CPFR

D) SCM

D) SCM

Collaborative commerce systems:

A) focus on structuring intra-firm communications.

B) bring customers into the product development phase.

C) provide open, competitive marketplaces.

D) foster sharing sensitive internal information with suppliers and purchasers.

D) foster sharing sensitive internal information with suppliers and purchasers.

Which of the following is not a characteristic of the use of social networks in B2B e-commerce?

A) It is typically unstructured.

B) It helps develop a more personal relationship between participants in the supply chain.

C) It enables participants to make decisions based on current conditions.

D) They are always private.

D) They are always private.

All of the following are important trends in B2B e-commerce in 2016-2017, except:

A) the growing emphasis on obtaining real-time data.

B) growing emphasis on lowest cost supply chains.

C) generation and management of huge big data repositories.

D) an increase in regional manufacturing and supply chains.

B) growing emphasis on lowest cost supply chains.

EDI document structures are defined by:

A) a single international standards body.

B) individual suppliers and buyers.

C) industry committees.

D) each purchaser.

C) industry committees.

A(n) ________ supply chain is one in which the labor conditions in low-wage, underdeveloped producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies.

A) sustainable

B) ethical

C) lean

D) accountable

D) accountable

________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain.

A) Green

B) Sustainable

C) Lean

D) Just-in-time

C) Lean

________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles.

A) SCM

B) Social e-commerce

C) EDI

D) Collaborative commerce

D) Collaborative commerce

The term BYOD refers to employees:

A) working from home.

B) being allowed or encouraged to use their own mobile devices and laptops.

C) using mobile devices for work.

D) bringing work devices to the home.

B) being allowed or encouraged to use their own mobile devices and laptops.

________ is an example of an e-distributor.

A) Amazon Business

B) PowerSource Online

C) SupplyOn

D) Elemica

A) Amazon Business

Which of the following primarily serves horizontal markets?

A) e-distributors and exchanges

B) e-distributors and e-procurement Net marketplaces

C) e-procurement Net marketplaces and industry consortia

D) exchanges and industry consortia

B) e-distributors and e-procurement Net marketplaces

Which of the following primarily deals with indirect goods?

A) e-distributors and industry consortia

B) e-distributors and e-procurement Net marketplaces

C) exchanges and industry consortia

D) exchanges and e-procurement Net marketplaces

B) e-distributors and e-procurement Net marketplaces

Which of the following primarily deals with direct goods?

A) e-distributors and independent exchanges

B) exchanges and e-procurement Net marketplaces

C) exchanges and industry consortia

D) e-procurement Net marketplaces and industry consortia

C) exchanges and industry consortia

Which of the following primarily involves long-term sourcing?

A) e-distributors and exchanges

B) e-distributors and industry consortia

C) e-procurement Net marketplaces and exchanges

D) e-procurement Net marketplaces and industry consortia

D) e-procurement Net marketplaces and industry consortia

An ________ provides an online catalog that represents the products of thousands of direct manufacturers.

A) e-distributor

B) e-procurement company

C) exchange

D) industry consortium

A) e-distributor

An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis.

A) e-distributor

B) e-procurement company

C) exchange

D) industry consortium

A) e-distributor

E-distributors:

A) make money by charging a mark-up on products they distribute.

B) usually operate "private" markets.

C) operate in vertical markets.

D) focus on selling direct products

A) make money by charging a mark-up on products they distribute.

An ________ primarily serves businesses that buy indirect goods on a contract purchasing basis.

A) e-distributor

B) e-procurement Net marketplace

C) exchange

D) industry consortium

B) e-procurement Net marketplace

Which of the following is an example of an e-procurement Net marketplace?

A) TheSeam

B) Ariba

C) Grainger

D) SupplyOn

B) Ariba

An ________ serves businesses that primarily buy direct goods on a contract purchasing basis.

A) e-distributor

B) e-procurement company

C) exchange

D) industry consortium

D) industry consortium

TheSeam is an example of an ________.

A) exchange

B) industry consortium

C) e-procurement Net marketplace

D) e-distributor

B) industry consortium

NeweggBusiness is an example of a(n) ________.

A) e-distributor

B) exchange

C) private industrial network

D) e-procurement Net marketplace

A) e-distributor

Walmart's global supply chain has been criticized for all of the following except:

A) exploiting labor in underdeveloped countries.

B) bribing officials.

C) wasting energy.

D) failing to be efficient.

D) failing to be efficient.

________ is another name for transorganizational business processes.

A) Supply chain management

B) Collaborative commerce

C) B2B e-commerce

D) Value chain management

B) Collaborative commerce

Private industrial networks are direct descendants of:

A) e-procurement Net marketplaces.

B) existing EDI networks.

C) independent exchanges.

D) industry consortia.

B) existing EDI networks.

All of the following are forms of collaboration among businesses except:

A) RFQs.

B) CPFR.

C) demand chain visibility.

D) marketing coordination and product design.

A) RFQs.

Which of the following is not a typical barrier to the implementation of a private industrial network?

A) It requires participating firms to share sensitive data.

B) It requires the large network owners to give up some of its independence.

C) It requires a significant investment of time and money.

D) It requires a change of mindset and behavior of employees.

B) It requires the large network owners to give up some of its independence.

An ________ provides an online catalog that represents the products of thousands of direct manufacturers.

A) e-distributor

B) e-procurement company

C) exchange

D) industry consortium

A) e-distributor

An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis.

A) e-distributor

B) e-procurement company

C) exchange

D) industry consortium

A) e-distributor

E-distributors:

A) make money by charging a mark-up on products they distribute.

B) usually operate "private" markets.

C) operate in vertical markets.

D) focus on selling direct products

A) make money by charging a mark-up on products they distribute.

An ________ primarily serves businesses that buy indirect goods on a contract purchasing basis.

A) e-distributor

B) e-procurement Net marketplace

C) exchange

D) industry consortium

B) e-procurement Net marketplace

Which of the following is an example of an e-procurement Net marketplace?

A) TheSeam

B) Ariba

C) Grainger

D) SupplyOn

B) Ariba

All of the following are important trends in B2B e-commerce in 2016-2017, except:

A) the growing emphasis on obtaining real-time data.

B) growing emphasis on lowest cost supply chains.

C) generation and management of huge big data repositories.

D) an increase in regional manufacturing and supply chains.

B) growing emphasis on lowest cost supply chains.

EDI document structures are defined by:

A) a single international standards body.

B) individual suppliers and buyers.

C) industry committees.

D) each purchaser.

C) industry committees.

A(n) ________ supply chain is one in which the labor conditions in low-wage, underdeveloped producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies.

A) sustainable

B) ethical

C) lean

D) accountable

D) accountable

________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain.

A) Green

B) Sustainable

C) Lean

D) Just-in-time

C) Lean

All of the following are important trends in B2B e-commerce in 2016-2017, except:

A) the growing emphasis on obtaining real-time data.

B) growing emphasis on lowest cost supply chains.

C) generation and management of huge big data repositories.

D) an increase in regional manufacturing and supply chains.

B) growing emphasis on lowest cost supply chains.

EDI document structures are defined by:

A) a single international standards body.

B) individual suppliers and buyers.

C) industry committees.

D) each purchaser.

C) industry committees.

Multi-tier supply chain

the chain of primary, secondary, and tertiary suppliers

Supply Chain Visibility

the extent to which purchasing firms can monitor second-and third-tier suppliers' activities

Legacy computer systems

older mainframe systems used to manage key business processes within a firm in a variety of functional areas

enterprise systems

corporate-wide systems that relate to all aspects of production, including finance, HR & procurement

hub-and-spoke system

suppliers connected to a central hub of buyers via private dedicated networks

____ is a market that serves many different industries?

horizontal market

what are MRO goods?

products for maintenance, repair, and operations

value chain management (vcm) services

include automation of a firm's entire procurement process on the buyer side and automation of the selling business processes on the seller side