Chapter 4

Question 1

Conducting business activities electronically over computer networks

Answer 1

Electronic commerce

Question 2

Business activities that are strong candidates for conversion to e-commerce: (3)

Answer 2

Paper based
Time-consuming
Inconvenient for customers

Question 3

E-Commerce Challenges

Answer 3

Dealing with consumer privacy concerns
Overcoming consumers’ lack of trust
Overcoming global issues

Question 4

Someone using your personally identifying information without your permission to commit fraud

Answer 4

Identify theft

Question 5

Advantages of Electronic and Mobile Commerce

Answer 5

Reduce costs
Speed up the flow of goods and information
Increase accuracy
Improve customer service

Question 6

Direct sale from business to consumer through electronic storefronts

Answer 6

Electronic retailing (e-tailing)

Question 7

Single Web site that offers many products and services at one Internet location

Answer 7

Cybermall

Question 8

Electronic forum where manufacturers, suppliers, and competitors buy and sell goods, trade market information, and run back-office operations

Answer 8

Electronic exchange

Question 9

Owned and operated by a single company

Answer 9

Private exchanges

Question 10

Owned and operated by industry groups

Answer 10

Public exchanges

Question 11

Methods to increase security (4)

Answer 11

-Address Verification System
-Card Verification Number technique
-Visa’s Advanced Authorization process
-Federal Financial Institutions Examination Council’s “Authentication in an Internet Banking Environment” guidelines

Question 12

Works of the mind that are distinct somehow and are owned or created by a single entity eg: copyright

Answer 12

Intellectual property

Question 13

The use of any of several technologies to enforce policies for controlling access to digital media such as movies, music, and software

Answer 13

Digital rights management (DRM)

Question 14

Sending bogus messages to pry personal information from customers by convincing them to go to a “spoof” Web site

Answer 14

Phishing

Question 15

Can arise in a pay-per-click online advertising environment when additional clicks are generated beyond those that come from actual, legitimate users

Answer 15

Click fraud

Question 16

Attachment to an e-mail message or data embedded in a Web site that verifies the identity of a sender or Web site

Answer 16

Digital certificate

Question 17

Trusted third-party organization or company that issues digital certificates

Answer 17

Certificate authority (CA)

Question 18

-Capture and process detailed data necessary to update records about fundamental business operations
-Include order entry, inventory control, payroll, accounts payable, accounts receivable, general ledger, etc.
-Provide valuable input to:
Management information systems, decision support systems, and knowledge management systems

Answer 18

Transaction processing systems (TPSs)

Question 19

Data processing in which business transactions are:
Accumulated over a period of time
Prepared for processing as a single unit or batch
Payroll transactions and billing are typically done via batch processing.

Answer 19

Batch processing system

Question 20

Data processing in which each transaction is processed immediately, consequently, at any time, the data in an online system reflects the current status.
This type of processing is essential for businesses that require access to current data such as airlines, ticket agencies, and stock investment firms.

Answer 20

Online transaction processing (OLTP)

Question 21

Transaction processing cycle (6)

Answer 21

1. Data collection
2. Data editing
3. Data correction
4. Data manipulation
5. Data storage
6. document production