14 IT Networks and Electronic Commerce Flashcards

1
Q

What is terminal emulation?

A

Remote connections to mainframes usually through personal computers rather than through dumb terminals.

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2
Q

What is distributed processing?

A

The decentralization of processing tasks and data storage and assigning these functions to multiple computers, often in separate locations.

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3
Q

What is a local area network (LAN)?

A

A LAN is any interconnection between devices in a single office or building.

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4
Q

What is a peer-to-peer network arrangement?

A

Very small networks with few devices, where every device is connected directly to every other. Peer-to-peer networks become increasingly difficult to administer with each added device.

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5
Q

What is the most cost-effective and easy-to-administer arrangement for LANs?

A

client-server model

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6
Q

How to client-server networks differ from peer-to-peer networks?

A

client-server networks differ from peer-to-peer networks in that the devices play more specialized roles. Client processes (initiated by the individual user) request services from server processes (maintained centrally).

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7
Q

What is a client-server network arrangement?

A

In a client-server arrangement, servers are centrally located and devoted to the functions that are needed by all network users. Ex - mail servers, application servers, file servers, internet servers, web servers

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8
Q

What is a client?

A

Any object that uses the resources of another object. Thus, a client can be either a device or software program. “Client” refers to a device that requests services from a server. This understanding of the term encompasses anyting from a powerful graphics workstation to a personal mobile device.

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9
Q

What is the key to the client-server model?

A

The key to the client-server model is that it runs processes on the platform most appropriate to that process while attempting to minimize traffic over the network. This is commonly referred to as the three-tiered architecture of client, application and database. Because of the specialized roles, client-server systems are often assembled with equipment from multiple vendors.

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10
Q

What are security risks that increased with the convenience and flexibility of decentralization?

A
  • unauthorized software can be easily installed on the network from a desktop computer. This exposes the organization to both viruses and liability for copyright violation.
  • important files stored on a local computer may not be backed up properly by the user
  • applications written by users of local computers may not adhere to the standards of the organization, making data sharing difficult.
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11
Q

What is a wide area network (WAN)?

A

A wide area network (WAN) consists of a conglomerate of LANs over widely separated locations. The key aspect here is that a WAN can be either publicly or privately owned.

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12
Q

What is an advantage of a WAN?

A

The possibility of spreading the cost of ownership among multiple organizations.

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13
Q

What are examples of publicly owned WANs?

A

public telephone system and internet, available to any user with a compatible device. The assets of these networks are paid for by means other than individually imposed user fees.

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14
Q

What are public-switched networks?

A

Public-switched networks use public telephone lines to carry data. This arrangement is economical, but the quality of data transmission cannot be guaranteed and security is highly questionable.

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15
Q

What are privately owned WANs?

A

Privately owned WANs are profit-making enterprises. They offer fast, secure data communication services to organizations that do not wish to make their own large investments in the necessary infrastructure.

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16
Q

What are value-added networks (VANs)?

A

Value-added networks (VANs) are private networks that provide their customers with reliable, high-speed, secure transmission of data. To compete with the internet, these third-party networks add value by providing their customers with error detection and correction services, electronic mailbox facilities for electronic data interchange (EDI) purposes, EDI translation, and security for email and data transmissions.

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17
Q

What are virtual private networks (VPNs)?

A

Virtual private networks (VPNs) emerged as a relatively inexpensive way to solve the problem of the high cost of leased lines. A company connects each office or LAN to a local internet service provider and routes data through the shared, low-cost public internet. The success of VPNs depends on the development of secure encryption products that protect data while in transit.

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18
Q

What is an intranet?

A

A type of WAN, an intranet permits sharing of information throughout an organization by applying internet connectivity standards and web software (browsers) to the organization’s internal network. An intranet addresses the connectivity problems faced by organizations that have many types of computers. Its use is restricted to those within the organization.

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19
Q

What is an extranet?

A

A type of WAN, an extranet consists of the linked intranets of two or more organizations, for example, of a supplier and its customers. It typically uses the public internet as its transmission medium but requires a password for access.

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20
Q

What is hypertext markup language (HTML)?

A

HTML is the authoring software language commonly used to create and link websites. It allows users to clink on a word or phrase (a hyperlink) on their screens and have another document automatically displayed.

21
Q

What is hyper text transfer protocol (HTTP)?

A

HTTP allows hyperlinking across the internet rather than on just a single computer. A browser allows users to read HTML from any brand of computer. This system became known as the World Wide Web.

22
Q

What is extensible markup language (XML)?

A

XML was developed by an international consortium and released in 1998 as an open standard (not owned or controlled by any one entity) usable with many programs and platforms. XML is used to organize and define data online. It can be used to extract and tag structured data from a database for transmission and subsequent use in other applications.

23
Q

What is extensible business reporting language (XBRL)?

A

XBRL is derived from XML. XBRL is the standard for transmitting business data by using a uniform format to tag each piece of business and financial information being transmitted to the published taxonomy. The tags allow computers to automatically search for and assemble data so the data can be readily accessed and analyzed by accountants, investors, analysts, etc.

24
Q

In what format does the SEC require firms to provide their financial statements?

A

XBRL - because XBRL allows the statements to be directly exported to spreadsheets for analyses.

25
Q

What is a uniform resource locator (URL)?

A

A unique address, made up of alphanumeric characters, periods, and forward slashes, used to access a particular resource on the Web. However, just because the address is recognizable does not mean its content is accessible to every user. Security is a major feature of any organization’s website.

26
Q

What is cloud computing?

A

Cloud computing is an outsourcing arrangement, a term relating to the on-demand access to resources that are accessed on the internet and shared by others.

27
Q

What are advantages of cloud computing?

A
  • fast access to software
  • a reduced need for investment in IT infrastructure
  • the ability to use “pay as you go” services
28
Q

Why is IT security in the cloud potentially more difficult?

A

It is potentially more difficult due to the convenience and ease of access to sensitive data provided by cloud computing services.

29
Q

What are the three primary cloud services?

A
  1. infrastructure-as-a-service (IaaS)
  2. platform-as-a-service (PaaS)
  3. software-as-a-service (SaaS)
30
Q

What is infrastructure-as-a-service (IaaS)?

A

Under IaaS, an organization outsources hardware for information storage, security, and other networking components to service providers.

31
Q

What is platform-as-a-service (PaaS)?

A

PaaS provides an organization with operating systems, servers, and software tools to develop applications. An example of PaaS is Amazon Web Services (AWS).

32
Q

What is software-as-a-service (SaaS)?

A

SaaS allows organizations to get immediate access to and use applications hosted by the service providers. Google Apps such as Google Docs are an example of SaaS.

33
Q

What is an application service provider (ASP)?

A

An application service provider (ASP) is an entity that delivers computer software applications and other similar-type services to businesses and individuals over a network. Without using an ASP, similar applications and/or services would require installation on each computer. Ex - Yahoo Mail, Gmail, Google Docs, and Microsoft Office 365

34
Q

What is mobile technology?

A

Mobile technology is essentially technology that is easily carried or moved. Ex - smartphones, laptops, tablets, debit/credit card payment devices for smartphones

35
Q

What is E-business?

A

E-business is an umbrella term referring to all methods of conducting business electronically. This can include strictly internal communications as well as nonfinancial dealings with outside partied (ex - contract negotiations).

36
Q

What is E-commerce?

A

A term referring to the conduct of financial transactions with outside parties electronically. Ex - purchase and sale of goods and services.

37
Q

What are the 6 basic types of e-commerce?

A
  1. business-to-business (B2B) - ex - IBM providing software and support to corporations
  2. business-to-consumer (B2C) - ex - corporations selling products to individual consumers
  3. consumer-to-consumer (C2C) - ex - transactions among consumers on Ebay
  4. consumer-to-business (C2B) - ex - individual consumers selling goods to corporations online
  5. business-to-administration (B2A) - ex - corporations hosting online marketing events for the government
  6. consumer-to-administration (C2A) - ex - consumers paying their taxes through a government website
38
Q

What are the benefits of B2B e-commerce?

A
  • reduced purchasing costs
  • increased market efficiency
  • greater market intelligence
  • decreased inventory levels
39
Q

What is electronic funds transfer (EFT)?

A

EFT is an e-commerce application provided by financial institutions worldwide that enables the transfer of funds via an access device, such as an ATM or POS terminal, telephone, computer, or chip (credit, debit, and check cards).

40
Q

What is electronic data interchange (EDI)?

A

EDI is the leading method of carrying on B2B e-commerce. EDI involves the communication of data in a format agreed to by the parties directly from a computer in one entity to a computer in another entity, for example, to order goods from a supplier or to transfer funds.

41
Q

What are the advantages of EDI?

A
  • reduction of clerical errors
  • increased speed of transactions
  • elimination of repetitive clerical tasks, such as document preparation, processing, and mailing
  • use of digital rather than physical record storage
42
Q

What are the disadvantages of EDI?

A
  • information may be insecure - thus, end-to-end data encryption should be used to protect data during EDI
  • data may be lost
  • transmissions to trading partners may fail
  • EDI is more complex and costly than simpler B2B arrangements
43
Q

What are the costs associated with electronic data interchange (EDI)?

A
  • specialized software
  • dedicated hardware
  • legal costs
  • process reengineering
  • enhanced security and monitoring
44
Q

What are EDI standards?

A

Standards concern procedures to convert written documents into a standard electronic document-messaging format to facilitate EDI. The current standards are ANSI X12 in the U.S. or UN/EDIFACT in Europe and most of the rest of the world. An alternative approach is XML language, which is not a standard at all. XML enables the creation of electronic business documents in a more flexible way, one that is not bound by the strict rules of data location.

45
Q

What are EDI conventions?

A

Conventions are the procedures for arranging data elements in specified formats for various accounting transactions, ex - invoices, materials releases, and advance shipment notices.

46
Q

What is an EDI data dictionary?

A

A data dictionary prescribes the meaning of data elements, including specification of each transaction structure.

47
Q

What are EDI transmission protocols?

A

Transmission protocols are rules used to determine how each electronic envelope is structured and processed by the communications devices. Rules are required for the separation and transmission of envelopes. Ex - normally a group of accounting transactions is combined in an electronic envelope and transmitted into a communications network.

48
Q

In auditing an EDI application, an essential element is the audit trail, which is an activity log. What information does the log provide?

A
  • users who have accessed the system
  • files accessed
  • processing accomplished
  • time of access
  • amount of time the processing required
49
Q

What are two methods of communication between EDI computers?

A
  • point-to-point system - requires the use of dedicated computers by all parties
  • value-added networks (VANs) - private, third-party providers of common interfaces between organizations