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
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?
