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280+ E-Business Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Science in Information Technology TY (BSc IT) , Bachelor of Science in Information Technology (BSc IT) .

Chapters

Chapter: Hardware and Software for e-business
51.

What is a domain name in the context of website addresses?

A. The main part of a website address that identifies a specific website
B. A numerical identifier assigned to each device on the internet
C. The extension at the end of a website address (.com, .org, etc.)
D. A type of programming language used for web development
Answer» A. The main part of a website address that identifies a specific website
52.

Why are languages like PHP, ASP, and JavaScript often used in addition to HTML for e-commerce websites?

A. They provide basic structural elements for web pages
B. They are responsible for displaying images and videos on web pages
C. They add dynamic functionality and e-commerce capabilities beyond HTML
D. They are used to encrypt sensitive data transmitted between the website and users
Answer» C. They add dynamic functionality and e-commerce capabilities beyond HTML
53.

How does the internet contribute to cost reduction in business operations?

A. By eliminating the need for physical office spaces
B. By reducing the reliance on traditional advertising methods
C. By automating tasks previously performed by human employees
D. All of the above
Answer» D. All of the above
54.

Which of the following is NOT a typical advantage of using the internet for business communication?

A. Speed and efficiency of communication
B. Cost-effectiveness compared to traditional methods
C. Guaranteed security and privacy of communication
D. Ability to communicate with a global audience
Answer» C. Guaranteed security and privacy of communication
55.

How does the internet facilitate business growth and expansion?

A. By providing access to a wider customer base
B. By enabling online marketing and advertising
C. By creating opportunities for online business divisions
D. All of the above
Answer» D. All of the above
56.

What role do search engines like Google play in internet marketing?

A. They connect users with relevant websites and online content
B. They provide secure payment gateways for online transactions
C. They host and manage e-commerce websites
D. They design and develop mobile applications
Answer» A. They connect users with relevant websites and online content
57.

How does the internet contribute to recruitment and networking in the business world?

A. By replacing the need for face-to-face interviews
B. By connecting professionals through online platforms and social networks
C. By automating the process of resume screening and shortlisting
D. By eliminating the need for background checks and reference verification
Answer» B. By connecting professionals through online platforms and social networks
58.

What is outsourcing in the context of internet-enabled business practices?

A. Hiring remote employees within the same country
B. Moving business operations to a physical location with lower costs
C. Contracting services to external companies, often in different countries
D. Automating business processes using software and artificial intelligence
Answer» C. Contracting services to external companies, often in different countries
59.

How has the internet impacted the retail landscape?

A. It has led to the rise of e-commerce and online shopping platforms
B. It has made it impossible for traditional brick-and-mortar stores to compete
C. It has eliminated the need for physical inventory and distribution networks
D. It has resulted in standardized pricing for products and services globally
Answer» A. It has led to the rise of e-commerce and online shopping platforms
60.

What are some potential drawbacks of relying heavily on the internet for business operations?

A. Increased competition from businesses worldwide
B. Dependence on technology and internet connectivity
C. Security risks and the potential for cyberattacks
D. All of the above
Answer» D. All of the above
61.

How can businesses mitigate the risks associated with online security threats?

A. Implementing strong passwords and access controls
B. Using firewalls and antivirus software to protect networks and devices
C. Educating employees about cybersecurity best practices
D. All of the above
Answer» D. All of the above
62.

What is the significance of data privacy in the context of e-commerce and online business?

A. It is only relevant for businesses dealing with highly sensitive information
B. It is not a significant concern for online businesses
C. It is crucial for building trust with customers and complying with regulations
D. It is solely the responsibility of individual users to protect their own data
Answer» C. It is crucial for building trust with customers and complying with regulations
63.

How can businesses adapt to the evolving landscape of technology and e-business?

A. By embracing innovation and exploring new technologies
B. By understanding and responding to changing consumer behaviors
C. By investing in employee training and development
D. All of the above
Answer» D. All of the above
Chapter: Security for E-Business
64.

What is the primary function of a firewall?

A. To encrypt sensitive data
B. To control network traffic and block unauthorized access
C. To store and manage user passwords
D. To detect and remove viruses
Answer» B. To control network traffic and block unauthorized access
Explanation: Firewalls act as barriers between trusted networks and untrusted sources, filtering traffic to prevent unauthorized access.
65.

Which of the following is NOT a type of firewall?

A. Packet filtering firewall
B. Circuit-level gateway
C. Stateful inspection firewall
D. Data encryption
Answer» D. Data encryption
Explanation: Data encryption is a method of protecting data, not a type of firewall. Firewalls can be implemented through various technologies like packet filtering, circuit-level gateways, etc.
66.

Data encryption is primarily used for:

A. Improving network speed
B. Detecting viruses
C. Protecting data confidentiality
D. Compressing data
Answer» C. Protecting data confidentiality
Explanation: Data encryption transforms data into an unreadable format, making it incomprehensible without the decryption key. This protects the data from unauthorized access.
67.

What is the core purpose of encryption in secure communication?

A. To make data unreadable without proper decryption
B. To compress data for faster transmission
C. To improve network speed
D. To disguise the sender's identity
Answer» A. To make data unreadable without proper decryption
Explanation: Encryption converts data into an unreadable format, preventing unauthorized access to the information during transmission. This ensures that only authorized parties with the decryption key can access the original message.
68.

Which of the following is NOT a type of SSL certificate?

A. Single domain certificate
B. Wildcard certificate
C. Multi-domain certificate
D. Central Authority (CA) certificate
Answer» D. Central Authority (CA) certificate
Explanation: Central Authority (CA) is an entity that issues digital certificates, not a type of SSL certificate itself. SSL certificates verify website identity and enable encrypted connections.
69.

What is the significance of using HTTPS for a website?

A. It encrypts communication between the user's browser and the website, ensuring secure data transmission.
B. It improves website loading speed.
C. It helps in preventing email spam.
D. It enhances website visibility in search engine results.
Answer» A. It encrypts communication between the user's browser and the website, ensuring secure data transmission.
Explanation: HTTPS employs SSL/TLS protocols to encrypt communication between a user's browser and the website, ensuring data privacy and integrity. This is crucial for protecting sensitive information like passwords and credit card details.
70.

Which type of firewall examines both individual packets and their context within a TCP session?

A. Packet filtering firewall
B. Circuit-level gateway
C. Stateful inspection firewall
D. Application-level gateway
Answer» C. Stateful inspection firewall
Explanation: Stateful inspection firewalls go beyond examining individual packets. They maintain a record of the session and use this context to make more informed security decisions.
71.

Application-level gateways primarily operate based on:

A. IP addresses and port numbers
B. MAC addresses of devices
C. Network topology and routing protocols
D. Application-specific data, like HTTP requests
Answer» D. Application-specific data, like HTTP requests
Explanation: Application-level gateways function as intermediaries, examining application-layer data like HTTP requests, to control access and enforce security policies.
72.

Which of the following is a characteristic of a next-generation firewall (NGFW)?

A. They solely rely on IP addresses for filtering traffic.
B. They often include deep packet inspection capabilities.
C. They are limited to blocking traffic based on port numbers.
D. They are incapable of detecting application-layer attacks.
Answer» B. They often include deep packet inspection capabilities.
Explanation: NGFWs incorporate deep packet inspection, going beyond basic packet headers to analyze application-level data for enhanced threat detection and prevention.
73.

What is the primary purpose of a digital certificate in e-commerce?

A. To encrypt sensitive data during transmission
B. To verify the identity of a website and establish a secure connection
C. To store user passwords securely
D. To prevent email spoofing
Answer» B. To verify the identity of a website and establish a secure connection
Explanation: Digital certificates authenticate the identity of websites, ensuring that users are interacting with legitimate entities. This is crucial for building trust and confidence in online transactions.
74.

Which of the following is NOT an effective measure to protect a web server?

A. Allowing unrestricted file uploads from users
B. Using strong passwords for server and website administration
C. Keeping software up to date with the latest security patches
D. Implementing a firewall to control network access
Answer» A. Allowing unrestricted file uploads from users
Explanation: Allowing unrestricted file uploads is a significant security risk as it can lead to the execution of malicious code on the server. Other options represent essential security practices.
75.

What is the significance of validating user input on both the client-side (browser) and server-side?

A. It reduces server load by performing all validations on the client-side.
B. It eliminates the need for server-side validation.
C. It ensures a better user experience and enhances security by preventing malicious data submission.
D. It improves website aesthetics and design.
Answer» C. It ensures a better user experience and enhances security by preventing malicious data submission.
Explanation: Client-side validation enhances user experience by providing immediate feedback, while server-side validation is essential for security as it prevents malicious data from reaching the server.
76.

How do Cross-Site Scripting (XSS) attacks compromise website security?

A. By injecting malicious scripts into websites that are executed in users' browsers
B. By encrypting sensitive data and demanding a ransom for decryption
C. By launching brute-force attacks to guess user passwords
D. By flooding a server with traffic to cause a denial of service
Answer» A. By injecting malicious scripts into websites that are executed in users' browsers
Explanation: XSS attacks exploit vulnerabilities to inject malicious scripts into trusted websites. When users visit these compromised sites, the injected scripts can steal their data or manipulate page content.
77.

What is the primary goal of an SQL injection attack?

A. To steal user passwords by capturing keystrokes
B. To gain unauthorized access to a database or manipulate its data
C. To spread malware to other computers on the network
D. To overload a server with traffic and cause a denial of service
Answer» B. To gain unauthorized access to a database or manipulate its data
Explanation: SQL injection attacks target databases by manipulating web form inputs to execute malicious SQL code. This can lead to data breaches, unauthorized access, and data modification.
78.

What is the role of a firewall in network security?

A. To encrypt data transmitted over the network
B. To detect and remove viruses from network traffic
C. To filter network traffic and block unauthorized access based on security rules
D. To store and manage user passwords securely
Answer» C. To filter network traffic and block unauthorized access based on security rules
Explanation: Firewalls act as barriers between networks, controlling incoming and outgoing traffic based on predefined security rules. They filter traffic to prevent unauthorized access and protect the network.
79.

Which of the following is NOT a valid reason for using data encryption in e-business?

A. To reduce the size of data for faster transmission
B. To protect the confidentiality of sensitive information during transmission
C. To ensure the integrity of data and prevent unauthorized modifications
D. To authenticate the sender and receiver of information
Answer» A. To reduce the size of data for faster transmission
Explanation: While encryption can marginally increase data size due to the addition of encryption overhead, it is not a primary reason for its use. Encryption is crucial for protecting data confidentiality, integrity, and authenticity.
80.

What is the main advantage of using a strong password for your website admin area?

A. It improves website loading speed.
B. It enhances website visibility in search results.
C. It helps in preventing email spam.
D. It makes it difficult for attackers to gain unauthorized access to your website.
Answer» D. It makes it difficult for attackers to gain unauthorized access to your website.
Explanation: Strong passwords are crucial for protecting sensitive areas like website admin panels. They make it significantly difficult for attackers to guess or crack the password, safeguarding valuable data and preventing unauthorized access.
81.

What is the purpose of keeping software up to date for website security?

A. To patch security vulnerabilities and protect against known exploits.
B. To improve website aesthetics and user interface.
C. To enhance website functionality and add new features.
D. To optimize website performance and loading speed.
Answer» A. To patch security vulnerabilities and protect against known exploits.
Explanation: Software updates often include security patches that address identified vulnerabilities. Regularly updating software ensures that these vulnerabilities are fixed, reducing the risk of exploitation by attackers.
82.

What is the significance of avoiding detailed error messages to users in terms of website security?

A. It improves user experience by providing clear and concise error messages.
B. It enhances website aesthetics by removing unnecessary text.
C. It prevents attackers from gaining potentially useful information about the system or application.
D. It reduces the load on the server by minimizing data transmission.
Answer» C. It prevents attackers from gaining potentially useful information about the system or application.
Explanation: Detailed error messages can unintentionally reveal sensitive information about the system or application logic to attackers. Providing minimal error messages to users helps in reducing the information available to potential attackers.
83.

Which type of e-commerce channel involves buying traffic from search engines on a pay-per-click basis?

A. Direct traffic
B. Paid Search
C. Comparison Shopping Engines (CSEs)
D. Marketplaces
Answer» B. Paid Search
Explanation: Paid Search channels, like Google Ads, allow businesses to bid on keywords related to their products or services. They pay a fee each time a user clicks on their ad, driving traffic to their website.
84.

What are Comparison Shopping Engines (CSEs) in the context of e-commerce?

A. Websites that allow users to compare products and prices from different online retailers.
B. Social media platforms used for promoting and selling products online.
C. Online marketplaces where sellers can list their products for sale.
D. Mobile applications designed specifically for online shopping.
Answer» A. Websites that allow users to compare products and prices from different online retailers.
Explanation: CSEs are websites or platforms that aggregate product information and prices from various online retailers. They allow users to compare products and prices from different sellers in one place.
85.

How do marketplaces like eBay and Amazon function as e-commerce channels?

A. They provide secure payment gateways for online transactions.
B. They offer web hosting and design services for online businesses.
C. They act as platforms where sellers can list and sell their products directly to customers.
D. They facilitate online advertising and marketing campaigns.
Answer» C. They act as platforms where sellers can list and sell their products directly to customers.
Explanation: Marketplaces provide platforms for sellers to list and sell their products directly to customers. They act as intermediaries, handling aspects like payments and logistics, while connecting buyers and sellers.
86.

What is the significance of the 'Mobile' channel in e-commerce?

A. It refers to the use of email marketing for promoting products and services.
B. It involves the creation and distribution of mobile applications for businesses.
C. It represents the use of physical stores for online order fulfillment.
D. It highlights the growing trend of consumers using smartphones for online shopping.
Answer» D. It highlights the growing trend of consumers using smartphones for online shopping.
Explanation: The increasing use of smartphones for online shopping has led to the growth of the 'Mobile' channel. Businesses need to optimize their websites and strategies for mobile devices to cater to this growing user base.
87.

How do social media platforms contribute to e-commerce through the 'Social' channel?

A. They provide secure payment gateways for online transactions.
B. They allow businesses to engage with customers, promote products, and facilitate purchases.
C. They offer web hosting and design services for online businesses.
D. They facilitate online advertising and marketing campaigns.
Answer» B. They allow businesses to engage with customers, promote products, and facilitate purchases.
Explanation: Social media platforms are increasingly being used for social commerce. Businesses can leverage these platforms to engage with customers, promote products, and even facilitate direct purchases.
88.

Which of the following is an effective way to protect data and systems in an e-business environment?

A. Using antivirus software to detect and remove malware
B. Sharing passwords openly within the organization
C. Connecting to public Wi-Fi networks without a password
D. Disabling firewall protection for easier network access
Answer» A. Using antivirus software to detect and remove malware
Explanation: Using antivirus software is crucial for detecting and removing malware, which is a common threat to data and system security. Other options represent additional layers of protection.
89.

What is the primary function of a digital signature in securing electronic documents?

A. To encrypt the entire document for secure storage.
B. To reduce the size of the document for faster transmission.
C. To verify the authenticity and integrity of the document, ensuring it hasn't been tampered with.
D. To convert the document into a different file format for compatibility.
Answer» C. To verify the authenticity and integrity of the document, ensuring it hasn't been tampered with.
Explanation: Digital signatures provide authentication and non-repudiation. They verify the sender's identity and ensure that the document has not been tampered with, building trust and integrity in digital communication.
Chapter: E Payments Systems
90.

What does a digital wallet allow an individual to do?

A. Make electronic transactions
B. Store physical cash
C. Access social media
D. Write digital checks
Answer» A. Make electronic transactions
91.

What is the key difference between a debit card and a credit card?

A. Debit cards are only used online.
B. Credit cards have spending limits.
C. Debit cards offer rewards programs.
D. Debit card transactions deduct funds directly from the user's bank account.
Answer» D. Debit card transactions deduct funds directly from the user's bank account.
92.

What is a credit card based on?

A. Prepaid funds loaded onto the card
B. The cardholder's promise to pay the issuer for the amount spent
C. Direct access to the cardholder's bank account
D. A monthly subscription fee
Answer» B. The cardholder's promise to pay the issuer for the amount spent
93.

What type of entity is E-Cash?

A. A cryptocurrency
B. A mobile wallet app
C. A financial technology company
D. An online marketplace
Answer» C. A financial technology company
94.

Which of the following is NOT a risk associated with E-payments?

A. Credit risk
B. Fraud risk
C. Liquidity risk
D. Delivery risk
Answer» D. Delivery risk
95.

What is a potential consequence of inadequate internal controls in E-payments?

A. Increased customer satisfaction
B. Higher risk of fraud and financial losses
C. Improved compliance with regulations
D. Faster transaction processing times
Answer» B. Higher risk of fraud and financial losses
96.

What type of risk arises from a credit union's inability to settle financial obligations on time?

A. Liquidity risk
B. Systemic risk
C. Strategic risk
D. Compliance risk
Answer» A. Liquidity risk
97.

Which risk involves potential harm to a credit union's reputation due to unmet customer expectations?

A. Operational risk
B. Strategic risk
C. Reputation risk
D. Systemic risk
Answer» C. Reputation risk
98.

What is an e-payment system?

A. A system for exchanging physical currency
B. A method of making transactions electronically
C. A platform for online auctions
D. A type of cryptocurrency
Answer» B. A method of making transactions electronically
99.

Which of the following is an advantage of e-payments?

A. Increased risk of theft
B. High transaction fees
C. Limited acceptance
D. Convenience and time savings
Answer» D. Convenience and time savings
100.

What is a disadvantage of using e-payments?

A. Potential security risks and hacking
B. Faster transaction times
C. Lower transaction fees
D. Increased anonymity
Answer» A. Potential security risks and hacking

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