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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: Introduction to E-business
1.

What does E-commerce refer to?

A. Online transactions, including buying and selling goods and services over the internet.
B. Physical stores selling electronics.
C. Government websites providing information to citizens.
D. Offline business transactions.
Answer» A. Online transactions, including buying and selling goods and services over the internet.
2.

Which of the following is an example of E-commerce?

A. A physical bookstore selling novels.
B. A government office issuing passports.
C. A local farmer selling produce directly to consumers.
D. Purchasing airline tickets from an online travel agency.
Answer» D. Purchasing airline tickets from an online travel agency.
3.

How does E-business differ from E-commerce?

A. E-business and E-commerce are the same thing.
B. E-commerce is a broader term that includes E-business.
C. E-business includes E-commerce and also covers internal processes like inventory management.
D. E-commerce only involves business-to-business transactions, while E-business is business-to-consumer.
Answer» C. E-business includes E-commerce and also covers internal processes like inventory management.
Explanation: E-business encompasses a broader scope, including internal processes like inventory management, while E-commerce focuses solely on buying and selling.
4.

Which of the following is an example of an E-business activity that is NOT necessarily E-commerce?

A. A customer purchasing a product from an online retailer.
B. An online induction program for new employees of a company.
C. An online auction website connecting buyers and sellers.
D. A business paying its suppliers electronically through a bank transfer.
Answer» B. An online induction program for new employees of a company.
Explanation: An online induction program automates an internal business process, not directly buying or selling, making it E-business but not E-commerce.
5.

What is the primary characteristic of a B2B (Business-to-Business) model in E-commerce?

A. Transactions occur between two or more businesses.
B. Businesses sell directly to individual consumers.
C. Consumers sell goods or services to other consumers.
D. The government acts as the intermediary between businesses.
Answer» A. Transactions occur between two or more businesses.
Explanation: B2B transactions involve businesses selling to each other, unlike B2C which is directly to consumers.
6.

Which of these is an example of a B2B transaction?

A. A customer buying a laptop from an online store.
B. A person selling used furniture on Craigslist.
C. A manufacturer ordering raw materials from a supplier through a website.
D. A government agency publishing a tender notice for public bidding.
Answer» C. A manufacturer ordering raw materials from a supplier through a website.
7.

What is the main function of a web auction platform in E-commerce?

A. To facilitate direct negotiations between buyers and sellers.
B. To provide a platform for online bidding on products or services.
C. To act as an intermediary for B2B transactions.
D. To regulate online transactions and prevent fraud.
Answer» B. To provide a platform for online bidding on products or services.
8.

Which of the following is a characteristic of a private network compared to a public network?

A. Devices are visible to all users on the network.
B. It's commonly found in public places like malls and cafes.
C. It allows unrestricted access to all devices and shared resources.
D. It prioritizes security and offers controlled access to specific users or devices.
Answer» D. It prioritizes security and offers controlled access to specific users or devices.
Explanation: Private networks prioritize security and control, limiting device visibility and access to features like Homegroup.
9.

What does EDI stand for in the context of E-business?

A. Electronic Data Interchange
B. Electronic Delivery of Information
C. Efficient Data Integration
D. Electronic Document Interchange
Answer» A. Electronic Data Interchange
10.

What is the primary purpose of EDI in E-business?

A. To facilitate communication through emails and instant messaging.
B. To provide a platform for online marketing and advertising.
C. To enable the exchange of structured data between computer systems without human intervention.
D. To store and manage customer data for personalized marketing.
Answer» C. To enable the exchange of structured data between computer systems without human intervention.
Explanation: EDI enables seamless exchange of structured data, crucial for various business processes.
11.

Which of the following is a significant advantage of E-commerce for buyers?

A. Increased freedom of choice and a wider selection of products.
B. Reduced need for internet access and technological dependence.
C. Elimination of security risks associated with online transactions.
D. Guaranteed same-day delivery for all types of products.
Answer» A. Increased freedom of choice and a wider selection of products.
Explanation: E-commerce empowers buyers with the freedom to choose from a wider array of products and sellers.
12.

What is a key disadvantage of E-commerce for buyers?

A. Increased price transparency and comparison shopping capabilities.
B. 24/7 availability of online stores and convenience of shopping from home.
C. Inability to physically examine products before making a purchase.
D. Access to a wider variety of products and services.
Answer» C. Inability to physically examine products before making a purchase.
Explanation: The inability to physically interact with products before purchase is a drawback of E-commerce.
13.

Which feature of E-commerce allows businesses to operate continuously, regardless of time zones?

A. Information Richness
B. Time Compression
C. Ubiquity
D. Interactivity
Answer» B. Time Compression
14.

What does 'Ubiquity' mean in the context of E-commerce?

A. The ability to personalize marketing messages for individual customers.
B. The speed and efficiency of online transactions.
C. The global reach of E-commerce, transcending geographical boundaries.
D. The availability of E-commerce features anywhere and anytime through the internet.
Answer» D. The availability of E-commerce features anywhere and anytime through the internet.
15.

Which feature of E-commerce allows for two-way communication between businesses and customers?

A. Interactivity
B. Ubiquity
C. Information Density
D. Universal Standards
Answer» A. Interactivity
16.

What is the role of 'Suppliers and Supply Chain Management' in E-commerce?

A. Handling customer inquiries and complaints.
B. Managing online payments and preventing fraud.
C. Ensuring the timely delivery of the right products at competitive prices.
D. Developing and implementing marketing campaigns to attract customers.
Answer» C. Ensuring the timely delivery of the right products at competitive prices.
17.

Why is 'Client Relationship Management (CRM)' essential in E-commerce?

A. To manage interactions with customers, build relationships, and improve profitability.
B. To handle the logistics of storing, packing, and shipping products.
C. To ensure the security of online transactions and protect customer data.
D. To design and maintain the E-commerce website and its functionalities.
Answer» A. To manage interactions with customers, build relationships, and improve profitability.
18.

What is the main purpose of 'Loyalty Programs' in E-commerce?

A. To attract new customers through discounts and promotions.
B. To retain existing customers and encourage repeat purchases.
C. To gather customer data for targeted advertising.
D. To provide customer support and address complaints.
Answer» B. To retain existing customers and encourage repeat purchases.
19.

How do virtual communities contribute to E-business?

A. They provide secure payment gateways for online transactions.
B. They manage logistics and ensure timely delivery of products.
C. They develop and implement E-commerce websites for businesses.
D. They can foster brand loyalty and provide valuable customer feedback.
Answer» D. They can foster brand loyalty and provide valuable customer feedback.
20.

What is the defining characteristic of a virtual community?

A. It always involves face-to-face interaction between members.
B. It's limited to a specific geographical location.
C. It's a group of people who interact online based on shared interests.
D. It's exclusively used for business purposes.
Answer» C. It's a group of people who interact online based on shared interests.
21.

What is a web portal in the context of E-business?

A. A website that gathers information from various sources and presents it in a unified way.
B. An online marketplace connecting buyers and sellers.
C. A search engine that helps users find specific information online.
D. A social media platform for online networking and communication.
Answer» A. A website that gathers information from various sources and presents it in a unified way.
22.

What type of web portal focuses on a specific industry or niche market?

A. Vertical Portal
B. Horizontal Portal
C. Search Portal
D. Media Portal
Answer» A. Vertical Portal
23.

What is the key difference between B2B and B2C in E-commerce?

A. B2B involves online transactions, while B2C relies on offline methods.
B. B2B targets businesses as customers, while B2C targets individual consumers.
C. B2B focuses on selling physical products, while B2C deals with digital services.
D. There is no difference; both terms are interchangeable.
Answer» B. B2B targets businesses as customers, while B2C targets individual consumers.
24.

What is a major difference in the decision-making process between B2B and B2C E-commerce?

A. B2B decisions are usually impulsive, while B2C decisions are well-planned.
B. There's no significant difference in the decision-making process for both models.
C. B2B decisions are typically more logical and planned, while B2C decisions can be influenced by emotions.
D. B2B decisions involve multiple individuals, while B2C decisions are made solely by the end-user.
Answer» C. B2B decisions are typically more logical and planned, while B2C decisions can be influenced by emotions.
25.

What was the primary focus of early E-commerce in the 1960s and 1970s?

A. Facilitating transactions between businesses (B2B).
B. Selling directly to individual consumers (B2C).
C. Creating online auctions for used goods.
D. Developing social media platforms for businesses.
Answer» A. Facilitating transactions between businesses (B2B).
26.

Which company is considered a pioneer in the B2C E-commerce space, particularly in the mid-1990s?

A. Microsoft
B. Apple
C. Google
D. Amazon
Answer» D. Amazon
27.

What is a revenue model in the context of E-business?

A. A plan for managing customer relationships and improving satisfaction.
B. A strategy for attracting website traffic through search engine optimization.
C. A framework for generating financial income from an E-business.
D. A system for managing online payments and preventing fraud.
Answer» C. A framework for generating financial income from an E-business.
28.

How does an ad-based revenue model generate income for an E-business?

A. By charging customers a monthly or annual subscription fee.
B. By displaying advertisements on the website and earning revenue based on views or clicks.
C. By selling products or services directly to customers.
D. By promoting other businesses' products or services and earning a commission.
Answer» B. By displaying advertisements on the website and earning revenue based on views or clicks.
29.

What is the primary way an affiliate revenue model generates income?

A. By charging businesses a fee to list their products on the website.
B. By displaying banner ads on the website and earning revenue per view.
C. By offering premium features to customers for a subscription fee.
D. By earning a commission for promoting another business's products or services and driving sales.
Answer» D. By earning a commission for promoting another business's products or services and driving sales.
30.

Which revenue model involves providing a product or service and directly charging customers for it?

A. Transactional Revenue Model
B. Subscription Revenue Model
C. Ad-Based Revenue Model
D. Affiliate Revenue Model
Answer» A. Transactional Revenue Model
31.

What is the main characteristic of a subscription revenue model?

A. Customers make one-time purchases of products or services.
B. Customers pay a recurring fee for access to a product or service over a period of time.
C. Revenue is generated through advertising displayed on the website.
D. Income is earned by selling user data to third-party companies.
Answer» B. Customers pay a recurring fee for access to a product or service over a period of time.
32.

What is a potential downside of relying solely on an ad-based revenue model for an E-business?

A. It's difficult to implement and requires significant technical expertise.
B. It limits the E-business to only selling physical products.
C. It often requires a very large user base to generate substantial revenue.
D. It's not suitable for businesses targeting a niche market.
Answer» C. It often requires a very large user base to generate substantial revenue.
33.

What is an advantage of using a transactional revenue model for an E-business?

A. It's a direct way of generating revenue based on sales of products or services.
B. It guarantees a stable and predictable income stream.
C. It requires minimal effort to maintain once implemented.
D. It eliminates the need for marketing and customer acquisition costs.
Answer» A. It's a direct way of generating revenue based on sales of products or services.
34.

What is a potential challenge of implementing a subscription revenue model?

A. It's difficult to attract new customers with a subscription-based model.
B. It generates lower revenue compared to ad-based models.
C. It only works for businesses selling digital products or services.
D. It requires a continuous focus on customer retention and minimizing churn (unsubscribe) rates.
Answer» D. It requires a continuous focus on customer retention and minimizing churn (unsubscribe) rates.
Chapter: Hardware and Software for e-business
35.

What is the primary function of a web browser?

A. To access and display information from the World Wide Web
B. To send and receive emails
C. To create and edit documents
D. To manage computer hardware
Answer» A. To access and display information from the World Wide Web
36.

What does HTTP stand for in the context of internet protocols?

A. Hypertext Transmission Protocol
B. High-Tech Transfer Protocol
C. Hypertext Transfer Protocol
D. Hyperlink Text Transmission Protocol
Answer» C. Hypertext Transfer Protocol
37.

Which of the following is NOT a popular web browser?

A. Chrome Browser
B. Firefox Browser
C. Opera Mini
D. Windows Explorer
Answer» D. Windows Explorer
38.

What is the primary function of the Internet?

A. To provide a platform for online gaming
B. To connect devices and networks globally for data exchange
C. To facilitate online shopping exclusively
D. To replace traditional postal services
Answer» B. To connect devices and networks globally for data exchange
39.

What is the purpose of a URL (Uniform Resource Locator)?

A. To provide a global address for resources on the World Wide Web
B. To define the structure of an HTML document
C. To specify the design and layout of a web page
D. To encrypt data transmitted over the Internet
Answer» A. To provide a global address for resources on the World Wide Web
40.

What is the full form of UDP in computer networking?

A. User Data Packet
B. User Datagram Protocol
C. Uniform Datagram Protocol
D. Universal Data Packet
Answer» B. User Datagram Protocol
41.

What does XML stand for in the context of web technologies?

A. eXtensible Markup Language
B. Extensible Modeling Language
C. XML Markup Language
D. Cross-platform Markup Language
Answer» A. eXtensible Markup Language
42.

What is the primary purpose of the <img> tag in HTML?

A. To create a hyperlink to another web page
B. To define a paragraph of text
C. To embed a video in a web page
D. To embed an image in a web page
Answer» D. To embed an image in a web page
43.

What is the main function of a web hosting service?

A. To design and develop websites
B. To provide internet access to users
C. To store and make websites accessible on the Internet
D. To manage email accounts
Answer» C. To store and make websites accessible on the Internet
44.

Which of the following is NOT a common type of security software?

A. Antivirus software
B. Firewall software
C. Spyware removal software
D. Web design software
Answer» D. Web design software
45.

What is the primary purpose of intrusion detection and prevention systems (IDPS)?

A. To identify and protect against security threats on networks
B. To design and develop secure websites
C. To manage user accounts and passwords
D. To provide data backup and recovery services
Answer» A. To identify and protect against security threats on networks
46.

What is the role of anti-malware network tools?

A. To control access to network resources based on user roles
B. To detect, block, and remove malware from networks
C. To encrypt sensitive data transmitted over networks
D. To provide a secure communication channel over an unsecured network
Answer» B. To detect, block, and remove malware from networks
47.

What is the main function of network access control (NAC) products?

A. To monitor and analyze network traffic for suspicious activity
B. To provide a centralized platform for managing security events
C. To enforce security policies by controlling network access for devices
D. To create and manage virtual private networks (VPNs)
Answer» C. To enforce security policies by controlling network access for devices
48.

How do next-generation firewalls (NGFWs) differ from traditional firewalls?

A. They provide deeper inspection and control over application-level traffic
B. They only operate at the network layer, examining IP addresses and ports
C. They are primarily hardware-based solutions
D. They are not capable of detecting and blocking malicious software
Answer» A. They provide deeper inspection and control over application-level traffic
49.

What is the primary role of authentication and authorization mechanisms in network security?

A. To encrypt sensitive data stored on network devices
B. To prevent unauthorized access to physical network infrastructure
C. To detect and respond to security breaches in real time
D. To verify user identities and control access to network resources
Answer» D. To verify user identities and control access to network resources
50.

What is the significance of Internet speed for e-commerce activities?

A. It affects the design and layout of a website
B. It impacts the loading time of web pages, influencing user experience
C. It determines the number of products that can be listed on an e-commerce site
D. It has no direct impact on e-commerce activities
Answer» B. It impacts the loading time of web pages, influencing user experience

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