IS and Comm D - Internet Implications for Business

Question 1

_____ allows customers to pay for goods or services from a website while maintaining financial privacy

Answer 1

E-cash

Question 2

A credit card, site draft, and e-check are _______

Answer 2

not anonymous

Question 3

Implementing EDI with supplies is an effective tool to

Answer 3

reduce costs by reducing raw materials inventory

Question 4

Business-to-business (B2B) commerce seeks to bring buyers and sellers together using ______

Answer 4

the internet

Question 5

An essential element of the audit trail in an EDI system is

Answer 5

network and sender/recipient acknowledgments

Question 6

A benefit of using EFT for international cash transactions is

Answer 6

reduction of the frequency of data-entry errors

Question 7

An internal version of the internet that can be accessed using conventional WWW compatible hardware and software is called

Answer 7

an intranet

Question 8

A network node used to setup a boundary that prevents traffic from one segment to cross over to another is

Answer 8

a firewall

Question 9

EDI can be distinguished from other forms of electronic commerce in that

Answer 9

EDI transactions are formatted using standards that are uniform worldwide

Question 10

The required implementation of EDI in a supplier/purchaser relationship comes with the advantages:

Answer 10

• access to inventory product balances
• savings in A/R
• better tracking of deliveries and payments
• reduction in payment float

Question 11

The required implementation of EDI is not advantageous for ____ because ____

Answer 11

the supplier; compatibility with other procedures an systems

Question 12

The traditional manual procurement of direct and indirect resources used in manufacturing has been replaced by

Answer 12

online commerce via B2B

Question 13

A research-based firm in the medical field could use the following internet-based tools for collaboration:

Answer 13

• email application
• videoconferencing
• groupware system

Question 14

EDI is used

Answer 14

to electronically transfer information between and within organization computers. It is communication between computer software applications, not between humans.

Question 15

There are additional costs related to EDI as compared to the traditional paper environment in that

Answer 15

translation software is needed to convert transactions from the entity’s internal format to a standard EDI format

Question 16

Every site connected to a TCP/IP network has a unique address. Fact or Fiction?

Answer 16

Fact

Question 17

Local Area Network (LAN) is

Answer 17

a series of microcomputers linked together by cable and sometimes using a common storage device

Question 18

A network of computers located throughout an organization’s different facilities and linked to a centralized computer to fulfill information processing needs is called

Answer 18

a distributed data processing

Question 19

Corporate intranets are typically characterized by ______ as compared to local and wide area networks

Answer 19

higher security risk and lower cost

Question 20

A benefit of transmitting transactions in an EDI environment is

Answer 20

a compressed business cycle with lower year end receivables balances

Question 21

The internet is made up of a series of networks that include

Answer 21

gateways to allow mainframe computers to connect to personal computers

Question 22

Routers determine

Answer 22

the best path for data

Question 23

Bridges connect

Answer 23

physically separate LAN’s

Question 24

Repeaters strengthen

Answer 24

signal strength

Question 25

A major advantage int he adoption and use of electronic commerce lies in the replacement of

Answer 25

paper documents

Question 26

Savings in clerical costs and transaction processing time are most advantageous for

Answer 26

electronic commerce

Question 27

E-commerce security measures include

Answer 27

- encryption - firewalls - user account mgtm

Question 28

Simulation is

Answer 28

an auditing tool in testing transaction processing systems

Question 29

EDI is best defined as

Answer 29

electronic business information is exchanged between 2 or more businesses

Question 30

In building an EDI system, the process used to determine which elements in the entity's computer system corresponds to the standard data elements is

Answer 30

mapping

Question 31

Translation in EDI is

Answer 31

changing computer code from one language to another

Question 32

Encryption is

Answer 32

used to prevent interception of data and to store data so that others cannot read it

Question 33

Decoding is

Answer 33

converting encrypted data back to readable data

Question 34

Benefit of EDI includes

Answer 34

improved business relationships with trading partners

Question 35

EDI transmits

Answer 35

document data, not the actual document

Question 36

External users of AIS include

Answer 36

- investors - creditors - gov. agencies

Question 37

Internal users of AIS include

Answer 37

- company mgmt | - company employees

Question 38

To protect data from being accessed by unauthorized users, companies must

Answer 38

maintain firewalls

Question 39

Anyone can establish a home page on the Internet. Fact or Fiction?

Answer 39

FACT

Question 40

There are no security standards for connecting to the internet and a coalition of internet providers does not exist to dictate such standards. Fact or Fiction?

Answer 40

FACT

Question 41

A manufacturing company that wants to be able to place material orders more efficiently would use

Answer 41

EDI

Question 42

Ways to efficiently pay for materials include:

Answer 42

- Electronic check presentment - ACH - EFT

Question 43

An electronic meeting conducted among several parties at remote sites is referred to as

Answer 43

teleconferencing

Question 44

In an e-commerce environment that requires that the IT system be available on a continuous basis, more emphasis should be placed on

Answer 44

maintaining redundant systems for instant availability to assure the flow of transactions

Question 45

Effective use of B2B should enable companies to

Answer 45

both increase market efficiency and reduce purchasing costs

Question 46

A company estimates the probability of occurrence of user error to be 90%, with evenly distributed losses ranging from $1,000 to $30,000. What is the expected annual loss from user error?

Answer 46

$13,950 ((1,000+30,000) /2) * 90%

Question 47

An essential element of the audit trail in an EDI system is

Answer 47

activity logs that indicate failed transactions

Question 48

An encryption feature that can be used to authenticate the originator of a document and ensure the message is intact and has not been tampered with is

Answer 48

digital signatures

Question 49

An advantage of using the internet for electronic commerce rather than a traditional VAN is that the internet

Answer 49

permits EDI transactions to be sent to trading partners as transactions occur

Question 50

Reasons for a company to use EFT with an EDI system include:

Answer 50

- negotiation of discounts based upon prompt payment - improve cash mgmt program - reduce input time and input errors

Question 51

An auditor usually considers the greatest risk with EDI to be

Answer 51

improper distribution of EDI transactions