TIF_9780273761389_04

Exam Name___________________________________ 1. B2B e-commerce refers to transactions between businesses that are conducted electronically over the public Internet only. Answer: True

False

Diff: 1

Type: TF Page Ref: 181 AACSB: Objective:

2. The availability of a secure broadband Internet platform is one of the key drivers of B2B EC. Answer:

True False

Diff: 1


3. B2B EC marketplaces that involve one seller selling to many buyers is called an exchange. Answer: True

False

Diff: 1 Type: TF Page Ref: 181 AACSB: Objective:

4. In one-to-many and many-to-one marketplaces, if all selling is done by one company, it is a buy-side market. Answer: True

False

Diff: 2


5. In company-centric marketplaces, the individual company has very little control over who participates in selling or buying transactions. Answer: True

False

Diff: 2


6.

E-marketplace exchanges are usually owned and run by a third party or by a consortium. Answer:

True False

Diff: 2


7. Market forecasters estimate that by 2012 the global B2B market, both online and offline, could reach $1 trillion. Answer: True

False

Diff: 2


8. Businesses deal with other businesses for purposes beyond just selling or buying. One example is that of collaborative commerce, which includes communication, design, planning, and information sharing among business partners. Answer:

True False Type: TF

Diff: 2

Page Ref: 182 AACSB: Objective:

9. Intermediaries in B2B commerce that broker transactions between buyers and sellers are third-parties that are either virtual or brick-and-mortar. Answer:

True False

Diff: 2

Type: TF Page Ref: 183. AACSB: Objective:

10. Spot buying refers to the purchasing of goods and services according to a schedule, usually at prevailing market prices that are determined by supply and demand. Answer: True

False

Diff: 2


11. Stock exchanges and commodity exchanges (such as oil and sugar) are examples of spot buying. Answer:

True False

Diff: 1


12. Strategic sourcing refers to purchasing involving long-term contracts that usually are based on private negotiations between sellers and buyers. Answer:

True False

Diff: 2


13. Computers and communication devices are two examples of direct materials for a food processing company. Answer: True

False

Diff: 2


14. MRO, which stands for "maintenance, repair, and operation," refers to the indirect materials used in activities that support production. Answer:

True False

Diff: 2


15. Horizontal marketplaces are markets that concentrate on a service, material, or a product that is used in all types of industries. Answer:

True False

Diff: 2


16. Maverick buying refers to the planning, organizing, and coordinating of all the activities pertaining to the purchasing of the goods and services necessary to accomplish the mission of an enterprise. Answer: True

False

Diff: 2


17. Reverse auctions are one method of electronic procurement that is very popular with public organizations where tendering is usually mandatory. Answer:

True False

Diff: 3


18. Aggregating the catalogs of all approved suppliers and combining them into a single electronic catalog is an effective solution for internal procurement because it minimizes maverick buying. Answer:

True False

Diff: 3


19. Caltex, a multinational oil company, reduced the number of its suppliers from over 3,000 to 800 by implementing a central catalog for internal purchasing, lowering the per unit prices. Answer:

True False

Diff: 3


20. Exchanges can be vertical or horizontal. Answer:

True False

Diff: 1


21. By law, exchanges cannot be owned by a consortium. Answer: True

False


22. Anonymity is a key ingredient of dynamic pricing. Answer:

True False

Diff: 2


23. A vertical portal is an exchange formed and operated by a group of major companies in an industry to provide industrywide transaction services. Answer: True

False

Diff: 3


24. Dynamic pricing is the rapid movement of prices over time and possibly across customers, as a result of supply and demand matching.

Answer:

True False

Diff: 1


25. Loss of customer service quality is a potential risk for buyers in B2B exchanges. Answer:

True False

Diff: 2


26. Potential gains for sellers in B2B exchanges include less maverick buying. Answer: True

False

Diff: 3

Type: TF Page Ref: 210 AACSB:

Objective:

27. Corporate portals are major gateways through which employees, business partners, and the public can enter a corporate website. Answer:

True False

Diff: 2


28. Executive and supervisor portals are used for training, dissemination of company news, information, and discussion groups. Answer: True

False

Diff: 3


29. Mobile portals are accessible via mobile devices. Answer:

True False

Diff: 1


30. Alibaba.com requires buyers to pay for sourcing. Answer: True

False

Diff: 3


31. Creating brand awareness is an advantage of B2B social networking. Answer:

True False

Diff: 2

Type: TF Page Ref: 216-217 AACSB: Objective:

32. Social networks are used extensively in the B2B marketplace. Answer: True

False

Diff: 3


33. Google's OpenSocial is a programming standard that lets developers create applications that can run on a wide range of social networking platforms, which may increase B2B social networking. Answer:

True False

Diff: 2


34. The marketing and advertising processes used for B2B and B2C are remarkably similar. Answer: True

False

Diff: 2


35. Affiliate programs, infomediaries, and online data and text mining services are three popular B2B marketing and advertising methods. Answer:

True False

Diff: 1


36. Key business drivers for B2B include each of the following except A)

the need for collaborations between suppliers and buyers. B) the willingness of companies to incur higher costs to improve collaboration. C)

the ability to reduce delays. D)

the availability of a secure broadband Internet platform. Answer: B Type: MC

Diff: 1

Page Ref: 181 AACSB: Use of information technology Objective:

37. E-commerce that focuses on a single company's buying needs or selling needs best defines A)

company-centric EC. B) private marketplace. C)

computer exchange. D)

business-to-business e-commerce. Answer: A

Diff: 2

Type: MC Page Ref: 181 AACSB: Objective:

38. Many-to-many e-marketplaces, usually owned and run by a third party or a consortium, in which many buyers and many sellers meet electronically to trade with each other best describes A)

spot purchases. B) public market. C)

company-centric EC. D)

exchanges. Answer: D

Diff: 1


39. B2B transactions that involve communication, design, planning, information sharing, and activities beyond financial transactions among business partners defines A)

collaborative commerce. B) public marketplaces. C)

trading communities. D)

exchanges. Answer: A

Diff: 3

Type: MC Page Ref: 182 AACSB: Use of information technology Objective:

40. An online third party that brokers a transaction online between a buyer and a seller best describes

A)

vertical marketplace. B) strategic source. C)

online intermediary. D)

horizontal marketplace. Answer: C

Diff: 2


41. Types of B2B transactions include A)

randomized buying. B) reverse purchasing. C)

strategic sourcing. D)

intermediation. Answer: C Type: MC

Diff: 2


42. The purchase of goods and services as they are needed, usually at prevailing market prices, best defines A)

strategic sourcing. B) spot buying.

C)

direct materials. D)

consolidation. Answer: B

Diff: 2


43. Purchases of goods and services based on long-term contracts best defines A)

consolidation. B) direct materials. C)

strategic sourcing.

D)

spot buying. Answer: C

Diff: 2


44. Which of the following can be supported more effectively and efficiently through direct buyer-seller negotiations? A)

spot buying

B)

B2C e-commerce C)

strategic sourcing D)

MRO

Answer:

C

Diff: 2


45. Materials used in the production of a product best defines A)

MRO materials. B) indirect materials. C)

production materials. D)

direct materials. Answer: D

Diff: 2


46. Two types of materials and supplies that are traded in B2B are A)

commodities and nonproduction. B) horizontal and vertical. C)

digital and physical. D)

direct and indirect. Answer: D

Diff: 1


47. Materials used to support production are called A)

direct materials. B) indirect materials. C)

virtual materials. D)

operational materials. Answer: B

Diff: 2


48. The major B2B service industries include each of the following except A)

financial services. B) travel and hospitality services. C)

banking and online financing. D)

retail.

Answer: D

Diff: 2

Type: MC Page Ref: 185-186 AACSB: Use of information technology Objective:

49. Which of the following is not one of the major benefits of B2B for both buyers and sellers? A)

increases opportunities for collaboration B) expedites processing and reduces cycle time C)

enables customized online catalogs with different prices for different customers D)

reduces procurement costs Answer: D

Diff: 3


50. A business strategy that focuses on providing comprehensive quality service to business partners best defines A)

customer relationship management. B)

supply chain management. C)

supplier relationship management. D)

partner relationship management. Answer: D

Diff: 3


51. A comprehensive approach to managing an enterprise's interactions with the organizations that supply the goods and services it uses best defines A)

supplier relationship management. B) customer relationship management. C)

partnership relationship management. D)

supply chain management. Answer: A

Diff: 3


52. All are benefits of B2B except A)

creates new sales or purchase opportunities. B) lowers search costs and time for buyers to find products and vendors. C)

eliminates paper and reduces administrative costs. D)

increases channel conflict. Answer: D

Diff: 1


53. A Web-based marketplace in which one company sells to many business buyers from e-catalogs or auctions, frequently over an extranet, describes A)

reflective e-commerce. B) sell-side e-commerce. C)

single-side e-commerce. D)

buy-side e-commerce. Answer:

B

Diff: 1


54. Several benefits of Microsoft's ________ are that distributors can check inventory, make transactions, and look up the status of their orders, significantly reducing the number of phone calls, e-mails, and incorrect product shipments. A)

customized catalog B) electronic data interchange C)

extranet-based order-entry tool D)

auto-responder Answer: C

Diff: 3


55. High-quality bicycle manufacturer Gregg's Cycles does not sell its products online, nor do they allow their bicycles to be sold online by others. By not selling online, Gregg's Cycles avoids ________ with its dealers and the independent bike shops that sell its bikes. A)

pricing conflict B)

disintermediation C)

channel conflict D)

multichannel distribution Answer: C

Diff: 2


56. Benefits of using a third-party hosting company for conducting B2B auctions instead of developing an auction site inhouse include all of the following except A)

no redeployment of corporate resources. B) no need for additional resources such as hardware, bandwidth, or IT personnel. C)

time-to-market of several weeks. D)

no hiring costs. Answer: C

Diff: 3


57. Companies use ________ to sell their unneeded assets for quick disposal or to dispose of excess, obsolete, and returned products. A)

reverse auctions B) private auctions C)

forward auctions D)

liquidation Answer: C

Diff: 2


58. A characteristic that describes customer loyalty to a site that eventually results in higher revenue best defines A)

attachment.

retention.

C)

acquisition.

stickiness.

B)

D)

Answer:

D

Diff: 2


59. A corporate-based acquisition site that uses reverse auctions, negotiations, group purchasing, or any other e-procurement method best defines A)

buy-side e-marketplace. B) desktop procurement method. C)

aggregated catalog. D)

intermediary. Answer: A

Diff: 3


60. The planning, organizing, and coordinating of all the activities relating to purchasing goods and services needed to accomplish the organization's mission best defines A)

supply chain management. B)

buy-side e-marketplace. C)

procurement management. D)

customer relationship management. Answer: C

Diff: 2


61. Unplanned purchases of items needed quickly, often at non-prenegotiated higher prices, best defines A)

maverick buying. B) free market.

C)

impulse purchases. D)

MRO purchasing. Answer: A

Diff: 2


62. Major procurement methods include A)

buying directly from manufacturers, wholesalers, or retailers from their catalogs, and possibly by negotiation. B) buying at an exchange or industrial mall. C)

buying at private or public auction sites in which the organization participates as one of the buyers. D)

all of the above. Answer: D

Diff: 1


63. The electronic acquisition of goods and services for organizations via the Internet or private network best defines A)

MRO planning. B) e-procurement. C)

spot buying.

D)

resource acquisition. Answer: B

Diff: 1 Type: MC Page Ref: 197 AACSB: Objective:

64. Using Internet technology to buy goods and services from a number of known or unknown suppliers best defines A)

e-tendering.

B)

e-reverse auctioning. C)

e-sourcing.

D)

e-informing. Answer: B

Diff: 2


65. Types of e-procurement include A)

E-market sites. B) E-MRO.

C)

E-informing. D)


Diff: 1

Type: MC Page Ref: 199-200 AACSB: Objective:

66. Gathering and distributing purchasing information both from and to internal and external parties using Internet technology best defines A)

e-informing. B) e-tendering.

e-MRO.

C)

D)

e-sourcing. Answer: A

Diff: 2


67. E-procurement benefits include each of the following except

A)

improving information flow and management. B) ensuring delivery on time, every time. C)

reducing the number of suppliers. D)

ease of internal and external integration. Answer: D

Diff: 3


68. E-procurement limitations and challenges include each of the following except A)

the system may be too complex. B) the ease of getting suppliers to cooperate electronically. C)

the technology needs to be updated frequently. D)

the cost may be too high. Answer: B Type: MC

Diff: 3


69. Which of the following is the unplanned, emergency-type buying where buyers usually pay more? A)

extreme purchasing B) impulse purchasing C)

maverick buying D)

spot buying Answer: C

Diff: 2


70. Advantages of using internal catalogs include A)

easy financial controls. B) decreasing the number of suppliers. C)

using search engines to look through internal catalogs.

D)


Diff: 1


71. The aggregated catalogs of all approved suppliers combined into a single internal electronic catalog defines A)

internal procurement marketplace. B) buy-side e-marketplace. C)

sell-side e-marketplace. D)

bartering exchange. Answer: A

Diff: 3


72. An example of a successful aggregation of suppliers' catalogs is that of ________, which aggregates more than 10,000 items from the catalogs of approved suppliers into an internal electronic catalog. A)

Google

B)

Priceline.com C)

Amazon.com D)

MasterCard International Answer: D

Diff: 2


73. Direct purchasing from internal marketplaces without the approval of supervisors and without the intervention of a procurement department best defines A)

maverick buying. B) desktop purchasing. C)

spot buying.

D)

renegade purchasing. Answer: B Type: MC

Diff: 2


74. With a bartering exchange, a company submits its surplus to the exchange and receives A)

an equivalent amount of products or services. B) points of credit, which the company can then use to buy items that it needs. C)

cash minus a small commission for services. D)

interest payments until it buys something from the exchange. Answer: B

Diff: 2


75. B2B portals that focus on a single industry or industry segment best describes A)

collaborative portals. B) information portals. C)

local portals. D)

vortals.

D

Answer:

Diff: 3


76. Portals that store data and enable users to navigate and query these data are A)

MRO portals. B) information portals. C)

mobile portals. D)

collaborative portals. Answer: B

Diff: 2


77. The main uses of social networks include A)

encouraging maverick purchases.

B) reducing the number of suppliers. C)

learning useful business intelligence. D)

driving traffic to online Web properties. Answer: C

Diff: 2


78. Which of the following companies uses viral videos to promote renewals of Care Pack Service agreements? A)

Arketi Group B) Hewlett-Packard C)

Reed Business Information D)

Cisco Systems Answer: B

Diff: 2


79. Marketing by manufacturers and wholesalers along the sell-side of the supply chain best defines A)

M2B purchasing. B) M2W marketing. C)

B2C marketing. D)

B2B marketing. Answer: D

Diff: 2


80. Denver Boards, a B2B manufacturer of snowboard equipment, can reach and target new retail customers in order to grow its online business by A)

hiring an affiliation service to drive traffic to its Web site. B) advertising in traditional media. C)

mining data. D)

reviewing POS data.

Answer: A

Diff: 3


81. List and briefly describe the four basic types of B2B transactions and activities. Answer: The four basic types of B2B transactions and activities are sell-side, buy-side, exchanges, and supply chain improvements and collaborative commerce. While sell-side refers to one seller to many buyers, buy-side refers to one buyer from many sellers. Exchanges involve many sellers to many buyers. Supply chain improvements and collaborative commerce refers to activities, other than buying or selling, among business partners, such as supply chain improvements, communication, collaboration, and information sharing for joint design and planning. Diff: 1

Type: ES Page Ref: 181-182 AACSB: Objective:

82. List five major benefits of B2B for buyers or sellers or both. Answer: Major benefits of B2B for buyers, sellers, or both include (1) creating new sales or purchase opportunities; (2) eliminating paper and reducing administrative costs; (3) expediting processing and reducing cycle time; (4) lowering search costs and time for buyers to find products and vendors; (5) increasing productivity of employees dealing with buying and/or selling; (6) reducing errors and improving quality of services; (7) making product configuration easier; (8) reducing marketing and sales costs for sellers; (9) reducing inventory levels and costs; (10) enabling customized online catalogs with different prices for different customers; (11) increasing production flexibility, permitting just-in-time delivery; (12) reducing procurement costs for buyers; (13) facilitating customization via configuration; (14) providing for efficient customer service; and (15) increasing opportunities for collaboration. Diff: 2

Type: ES Page Ref: 187 AACSB: Objective:

83. Identify five of the seven types of e-procurement. Answer: E-sourcing, e-tendering, e-reverse auctioning, e-informing, web-based ERP, e-market sites, and e-MRO are seven types of e-procurement. Diff: 2


84. What are the three major functions of exchanges? Answer: The three major functions of exchanges are matching buyers and sellers, facilitating transactions, and maintaining exchange policies and infrastructure. Diff: 1

Type: ES Page Ref: 207 AACSB: Objective:

85. List five generic types of portals. Answer: The five generic types of portals are portals for suppliers and other partners, customer portals, employee portals, executive and supervisor portals, and mobile portals. Diff: 1


1. FALSE

2. TRUE

3. FALSE

4. FALSE

5. FALSE

6. TRUE

7. FALSE

8. TRUE

9. TRUE

10. FALSE

11. TRUE

12. TRUE

13. FALSE

14. TRUE

15. TRUE

16. FALSE

17. TRUE

18. TRUE

19. TRUE

20. TRUE

21.

FALSE

22. TRUE

23. FALSE

24. TRUE

25. TRUE

26. FALSE

27. TRUE

28. FALSE

29. TRUE

30. FALSE

31. TRUE

32. FALSE

33. TRUE

34. FALSE

35. TRUE

36. B

37. A

38. D

39. A

40. C

41. C

42. B

43. C

44. C

45. D

46. D

47. B

48. D

49. D

50. D

51. A

52. D

53. B

54. C

55. C

56. C

57. C

58. D

59. A

60. C

61. A

62.

D

63. B

64. B

65. D

66. A

67. D

68. B

69. C

70. D

71. A

72. D

73. B

74. B

75. D

76. B

77. C

78. B

79. D

80. A

81. The four basic types of B2B transactions and activities are sell-side, buy-side, exchanges, and supply chain improvements and collaborative commerce. While sell-side refers to one seller to many buyers, buy-side refers to one buyer from many sellers. Exchanges involve many sellers to many buyers. Supply chain improvements and collaborative commerce refers to activities, other than buying or selling, among business partners, such as supply chain improvements, communication, collaboration, and information sharing for joint design and planning.

82. Major benefits of B2B for buyers, sellers, or both include (1) creating new sales or purchase opportunities; (2) eliminating paper and reducing administrative costs; (3) expediting processing and reducing cycle time; (4) lowering search costs and time for buyers to find products and vendors; (5) increasing productivity of employees dealing with buying and/or selling; (6) reducing errors and improving quality of services; (7) making product configuration easier; (8) reducing marketing and sales costs for sellers; (9) reducing inventory levels and costs; (10) enabling customized online catalogs with different prices for different customers; (11) increasing production flexibility, permitting just-in-time delivery; (12) reducing procurement costs for buyers; (13) facilitating customization via configuration; (14) providing for efficient customer service; and (15) increasing opportunities for collaboration.

83. E-sourcing, e-tendering, e-reverse auctioning, e-informing, web-based ERP, e-market sites, and e-MRO are seven types of e-procurement.

84. The three major functions of exchanges are matching buyers and sellers, facilitating transactions, and maintaining exchange policies and infrastructure.

85. The five generic types of portals are portals for suppliers and other partners, customer portals, employee portals, executive and supervisor portals, and mobile portals.

TIF_9780273761389_04

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