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EC15 TB chapter 12 - Test Bank
Advanced Macroeconomics (ECON 4P13)
Brock University
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E-commerce 2019: business. technology. society., 15e (Laudon/Traver) Chapter 12 B2B E-commerce: Supply Chain Management and Collaborative Commerce
Analysts predict that B2B e-commerce in the United States will grow to approximately ________ by 2022. A) $7 billion B) $73 billion C) $730 billion D) $7 trillion Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
In 2018, B2B e-commerce accounted for approximately ___% of all B2B commerce. A) 12 B) 42 C) 46 D) 54 Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
Which of the following was the first step in the development of B2B e-commerce? A) Electronic Data Interchange (EDI) B) automated order entry systems C) computerized inventory databases D) digital invoices Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
Which of the following terms refers to the links that connect business firms with one another to coordinate production? A) supply chain B) B2B e-commerce C) vertical market D) horizontal market Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its
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potential benefits and challenges.
Automated order entry systems: A) show goods from a single seller. B) increased the costs of inventory replenishment. C) are typically owned by the purchasing firm. D) no longer play an important role in B2B commerce. Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
Which of the following statements about EDI systems is true? A) They typically serve vertical markets. B) They are seller-side solutions. C) They evolved from private trading exchanges. D) They still play an important role in B2C commerce. Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
B2B e-commerce websites: A) are a predecessor of industry consortia. B) tend to serve horizontal markets. C) are buyer-side solutions. D) are considered a type of EDI system. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
Which of the following is another name for a private industrial network? A) industry consortia B) EDI system C) PTX D) net marketplace Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
In 2018, which of the following accounted for the smallest amount of B2B commerce? A) EDI 2
D) high levels of wage disparity between the developed and undeveloped worlds. Answer: C Difficulty: Easy AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
Which of the following statements about B2B marketing is not true? A) Mobile B2B marketing consumes less than 20% of B2B digital marketing budgets. B) Only 10% of B2B marketers use mobile marketing technologies. C) Content marketing is one of the primary and most effective marketing tools in B2B marketing. D) The disparity between the amount spent on B2B marketing compared to B2C e-commerce reflects the different nature of much of B2B e-commerce when compared to B2C e-commerce. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
Supply chain ________ refers to differentiating a firm's products or prices on the basis of superior supply chain management. A) management B) simplification C) competition D) collaboration Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
A(n) ________ market is one that provides expertise and products for a specific industry (i., automobiles). A) vertical B) horizontal C) indirect D) buyer-biased Answer: A Difficulty: Easy AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
The essential characteristic of ________ is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade. A) industry consortia B) exchanges 4
C) Net marketplaces D) horizontal markets Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
B2B e-commerce websites tend to serve horizontal markets. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
Few large firms today have Electronic Data Interchange (EDI) systems. Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
Why is B2B e-commerce seen as a potential revenue source for B2B firms? Answer: B2B e-commerce shows promise because purchasing supplies for a firm is a costly process. For example, firms estimate that each corporate purchase order costs at least $100 in overhead. Using B2B e-commerce to automate B2B purchasing could save, overall, trillions of dollars. In turn, this could enable lower prices, increased productivity, and even greater wealth for a nation. Difficulty: Moderate AACSB: Application of knowledge; Written and oral communication; Analytical thinking Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
Define and discuss the terms B2B commerce, B2B e-commerce, and supply chains in the context of the history and significance of B2B e-commerce. Answer: Before the Internet, business-to-business transactions were referred to simply as trade or the procurement process. The term B2B commerce refers to all types of inter-firm trade to exchange value across organizational boundaries. B2B commerce includes the following business processes: customer relationship management, demand management, order fulfillment, manufacturing management, procurement, product development, returns, logistics/transportation, and inventory management.
The term B2B e-commerce (or B2B digital commerce) refers to that portion of B2B commerce that is enabled by the Internet (including mobile apps) to assist firms in buying and selling a variety of goods to each other. The links that connect business firms in the production of goods and services are referred to as the supply chain.
Supply chains are a complex system of organizations, people, business processes, technology, 5
AACSB: Analytical thinking; Written and oral communication Learning Objective: 12: Discuss the evolution and growth of B2B e-commerce, as well as its potential benefits and challenges.
What is the first step in the procurement process? A) negotiate price B) qualify the seller and its products C) issue a purchase order D) search for suppliers Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand how procurement and supply chains relate to B2B e- commerce.
The last step in the procurement process is: A) sending a remittance payment. B) sending the invoice. C) shipping the goods. D) delivering the goods. Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand how procurement and supply chains relate to B2B e- commerce.
Office supplies are an example of: A) direct goods. B) indirect goods. C) MRO goods. D) distributed goods. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand how procurement and supply chains relate to B2B e- commerce.
The majority of inter-firm trade involves: A) spot purchasing of direct goods. B) contract purchasing of indirect goods. C) contract purchasing of direct goods. D) spot purchasing of indirect goods. Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand how procurement and supply chains relate to B2B e- commerce.
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All of the following are examples of direct goods in the auto industry except: A) sheet steel. B) shatter-resistant glass. C) rubber molding. D) desktop computers. Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand how procurement and supply chains relate to B2B e- commerce.
An example of an indirect good in the fast-food industry is: A) mustard. B) paper napkins. C) beef. D) sugar. Answer: B Difficulty: Easy AACSB: Application of knowledge Learning Objective: 12: Understand how procurement and supply chains relate to B2B e- commerce.
An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. A) exchange B) e-distributor C) e-procurement company D) industry consortium Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand how procurement and supply chains relate to B2B e- commerce.
An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand how procurement and supply chains relate to B2B e- commerce.
The liquidity of a market is measured by all of the following except: A) price transparency. 8
Answer: The procurement process refers to the way business firms purchase the goods they need to produce the goods they will ultimately sell to consumers. Firms purchase goods from a set of suppliers that in turn purchase their inputs from another set of suppliers. These firms are linked in a series of connected transactions. The supply chain refers to this series of transactions, which links sets of firms that do business with each other. It includes not only the firms themselves but also the relationships between them and the processes that connect them. There are seven steps in the procurement process: searching for suppliers for specific products; qualifying the sellers and the products they sell; negotiating prices; credit terms, escrow requirements, quality, and scheduling delivery; issuing purchase orders; sending invoices; goods are shipped; and the buyer sends a payment. Each step is composed of separate substeps that must be recorded in the information systems of the buyer, seller, and shipper. Difficulty: Difficult AACSB: Analytical thinking; Written and oral communication Learning Objective: 12: Understand how procurement and supply chains relate to B2B e- commerce.
All of the following are major trends in B2B e-commerce in 2018-2019, except: A) a movement toward implementing highly centralized supply chains to reduce risk. B) a growing emphasis on the use of business analytics software (business intelligence) to understand very large data sets. C) a growing emphasis on rapid-response and adaptive supply chains rather than lowest-cost supply chains. D) an increase in regional manufacturing and supply chains to attempt to combat the risks of far- flung global networks. Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
All of the following are weaknesses of EDI except: A) EDI is not well suited for electronic marketplaces. B) EDI lacks universal standards. C) EDI does not provide a real-time communication environment. D) EDI does not scale easily. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
Which of the following is a method of inventory cost management that seeks to eliminate excess inventory? A) lean production B) sustainable production C) just-in-time production D) supply chain simplification
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Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
Which of the following statements about cloud-based B2B systems is not true? A) Much of the expense of the system is shifted from the B2B network provider to the firm. B) B2B network providers charge customers on a demand basis. C) Network effects apply, enabling the spreading of costs. D) Cloud-based B2B data networks can be implemented in short periods of time. Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. A) Having an adaptive supply chain B) Tight coupling C) Supply-chain management D) Materials requirement planning Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
A majority of B2B buyers worldwide now believe their mobile device is essential to their work. Which age-group had the highest percentage agreeing with this statement? A) Millennials (ages 18-35) B) Gen-Xers (ages 36-51) C) Baby Boomers (ages 52 to 65) D) those over 65 Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. A) EDI B) ERP C) CPFR D) SCM Answer: D 11
commerce.
A(n) ________ supply chain is one in which the labor conditions in low-wage, underdeveloped producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies. A) sustainable B) ethical C) lean D) accountable Answer: D Difficulty: Easy AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain. A) Green B) Sustainable C) Lean D) Just-in-time Answer: C Difficulty: Difficult AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles. A) SCM B) Social e-commerce C) EDI D) Collaborative commerce Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
The term BYOD refers to employees: A) working from home. B) being allowed or encouraged to use their own mobile devices and laptops. C) using mobile devices for work. D) bringing work devices to the home. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative 13
commerce.
Highly centralized supply chains produce higher short-term costs, but also lower long-term risk protection. Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
EDI systems generally serve vertical markets. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
Tight coupling seeks to reduce excess inventory to a bare minimum. Answer: FALSE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
What is the difference between accountable and sustainable supply chains? Answer: Accountable supply chains provide information to consumers about the labor conditions of employees of the firm's suppliers and ensure that these conditions are satisfactory to their consumers. Sustainable supply chains take a somewhat wider focus, as they take both social and ecological interests into account throughout the firm's decision making, including issues such as carbon foot prints, impact on the environment and community. Difficulty: Moderate AACSB: Application of knowledge; Written and oral communication Learning Objective: 12: Identify major trends in supply chain management and collaborative commerce.
Define and explain supply chain management systems, supply chain simplification, and collaborative commerce, and the relationship between these concepts. Answer: Supply chain management systems coordinate and link the activities of suppliers, shippers, and order entry systems to automate the order entry process from start to finish including the purchase, production, and moving of a product from a supplier to a purchasing firm.
Supply chain simplification refers to the reduction of the size of a firm's supply chain. Firms today generally prefer to work closely with a strategic group of suppliers to reduce both product costs and administrative costs. Instead of open bidding for orders, large manufacturers have chosen to work with strategic partner supply firms under long-term contracts that guarantee the supplier business and establish quality, cost, and timing goals. These strategic partnership programs are essential for just-in-time production models. They often involve joint product 14
D) exchanges and industry consortia Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
Which of the following primarily deal with indirect goods? A) e-distributors and industry consortia B) e-distributors and e-procurement Net marketplaces C) exchanges and industry consortia D) exchanges and e-procurement Net marketplaces Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
Which of the following primarily deal with direct goods? A) e-distributors and independent exchanges B) exchanges and e-procurement Net marketplaces C) exchanges and industry consortia D) e-procurement Net marketplaces and industry consortia Answer: C Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
Which of the following primarily involve long-term sourcing? A) e-distributors and exchanges B) e-distributors and industry consortia C) e-procurement Net marketplaces and exchanges D) e-procurement Net marketplaces and industry consortia Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
An ________ provides an online catalog that represents the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium Answer: A Difficulty: Moderate 16
AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
E-distributors: A) make money by charging a mark-up on products they distribute. B) usually operate "private" markets. C) operate in vertical markets. D) focus on selling direct products. Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
________ is an example of an e-procurement Net marketplace. A) McMaster-Carr B) Ariba C) Amazon Business D) SupplyOn Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net
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AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
Exchanges are used for spot purchasing of MRO supplies. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
Exchanges are not directly tied to ERP systems used by large firms. Answer: TRUE Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
What services do e-procurement Net marketplaces provide? Answer: E-procurement Net marketplace services include providing a marketplace for long-term contractual purchasing as well as some spot-sourcing of indirect goods (MRO). They provide value chain management services to both buyers and sellers. VCM services include automation of a firm's entire procurement process on the buyer side (e., purchase orders, sourcing, requisitions), and automation of the selling business processes on the seller side (e., catalog creation, order management, invoicing). Difficulty: Moderate AACSB: Application of knowledge; Written and oral communication Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
Describe at least five characteristics of Net marketplaces. Answer: Characteristics of Net marketplaces include (1) bias—whether the marketplace advantages sellers, buyers, or each group equally (neutral); (2) ownership—who owns the marketplace, a specific firm, group of firms, or an industry group; (3) pricing mechanism—how are prices determined for products sold: fixed prices, bidding, RFPs; (4) Scope/focus—does the marketplace serve horizontal or vertical markets; (5) value creation—what benefits are offered to customers or suppliers; and (6) access to market—is the marketplace open to everyone or limited to invitees only. Difficulty: Moderate AACSB: Application of knowledge; Written and oral communication Learning Objective: 12: Understand the different characteristics and types of Net marketplaces.
Which of the following statements about Walmart's Global Replenishment System (GRS) is not true? A) GRS is an online analytics package. B) GRS is a just-in-time inventory management system. C) GRS is predictive, not just reflective, of past sales. 19
D) GRS is based on past point-of-sale data. Answer: D Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the objectives of private industrial networks, their role in supporting collaborative commerce, and the barriers to their implementation.
Trans-organizational business processes require _______ to perform. A) one firm B) two independent firms C) three independent firms D) at least ten firms Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the objectives of private industrial networks, their role in supporting collaborative commerce, and the barriers to their implementation.
Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia. Answer: B Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the objectives of private industrial networks, their role in supporting collaborative commerce, and the barriers to their implementation.
All of the following are forms of collaboration among businesses except: A) RFQs. B) CPFR. C) demand chain visibility. D) marketing coordination and product design. Answer: A Difficulty: Moderate AACSB: Application of knowledge Learning Objective: 12: Understand the objectives of private industrial networks, their role in supporting collaborative commerce, and the barriers to their implementation.
Which of the following is not a typical barrier to the implementation of a private industrial network? A) It requires participating firms to share sensitive data. B) It requires the large network owners to give up some of its independence. C) It requires a significant investment of time and money. D) It requires a change of mindset and behavior of employees. Answer: B Difficulty: Moderate 20
EC15 TB chapter 12 - Test Bank
Course: Advanced Macroeconomics (ECON 4P13)
University: Brock University
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