1. Which of the following cost areas of businesses do not decrease through transition to e-commerce?�

(a) Overhead.�
(b) Product Delivery.�
(c) Technological Adaptation.�
(d) Distribution.�

�2. What are the major consumer advantages to e-commerce?�

(a) Convenience and Choice.�
(b) Price and Privacy.�
(c) Customization and Choice.�
(d) both a & b.�

�3. What are the two major components of the digital economy?�

(a) Labour and Capital.�
(b) E-Commerce and Information Technology.�
(c) E-Business and E-Commerce.�
(d) The Internet and Commercial Intranets.�

�4. Which of the following Internet business models is responsible for creating a market?�

(a) Infomediary.�
(b) Affiliate.�
(c) Internetworked Enterprise.�
(d) Brokerage.�

�5. What is the most important design aspect of the web site interface?�

(a) Use backgrounds that are seamless.�
(b) Use image scaling.�
(c) Use a lot of colourful, fancy fonts.�
(d) Use a lot of colourful pictures.�

�6. What is the most accurate definition of e-commerce? �

(a) Shopping on the Internet.�
(b) Any form of business transaction that is a conducted on the Internet.�
(c) Any form of business transaction in which the parties interact electronically.�
(d) Any form of business transaction which is conducted in the digital economy.�

�7. Why are television and Internet advertisements more successful than radio advertisements?�

(a) Subliminal Persuasion.�
(b) Catchy Jingle.�
(c) Company Slogan.�
(d) Visual Components.�

�8. Which of the following is false about online-shopping?�

(a) It is fast, easy, and efficient.�
(b) Customer service is always easily accessible.�
(c) There are less geographical barriers than regular shopping.�
(d) A shipping And handling fee is required to process orders.�

�9. Which of the following is an 'online passport' that ensures security?�

(a) Digital Certificate.�
(b) Secure Sockets Layer.�
(c) Encryption.�
(d) Secure Electronic Transaction.�

�10. Which of the following are three conditions that must exist for a secure Internet transaction?�

(a) fabrication, authenticity, non-repudiation.�
(b) privacy, integrity, repudiation.�
(c) non-fabrication, authenticity, privacy.�
(d) integrity, publicity, protection.�