Introduction to E-Commerce

Chapter 9 Payments and Order Fulfillment

Practical Exercises
True-False Questions
1 Almost 50% of the purchases made online are done with credit cards. Answer: Reference: LensDoc Organizes Payments Online

2 B2B transactions are traditionally conducted using credit cards. Answer: Reference: Paying with Credit Cards Online

3 E-payment systems that require the payer to install specialized components have proven less likely to succeed. Answer: Reference: Characteristics of Successful E-payment Methods

4 Even if the same algorithm is used, the same plaintext encrypted with two different keys will produce two different pieces of ciphertext. Answer: Reference: Public key Encryption

5 In symmetric key encryption, the private key falling into the hands of hackers with the ability to intercept encrypted packets would not compromise the privacy of the ciphertext. Answer: Reference: Public Key Infrastructure

6 Digital signatures in the United States now have the same legal standing as a signature written in ink on paper. Answer: Reference: Digital Signatures: Authenticity and Nondenial

7 SET specifications are managed through a joint venture of Visa and MasterCard. Answer: Reference: Secure Electronic Transactions

8 When a stolen credit card is used to make purchases, the issuer of the credit card will, with adequate documentation, credit the cardholders account and charge back the merchant. Answer: Reference: Security Risks with Credit Cards

9 Like charge cards, the balance on purchasing cards is paid in full each month. Answer: Reference: Purchasing Cards for B2B

Payments and Order Fulfillment

Chapter 10

10 With current technology, it is theoretically impossible to hack into a smart card. Answer: Reference: Securing Smart Cards

11 Prepaid long distance phone cards are the most widely used smart cards today. Answer: Reference: Applications of Smart Cards

12 Like traditional cash, e-cash is anonymous. Answer: Reference: E-Cash and Innovative Payment Methods

13 P2P payments enable the transfer of funds between individuals. Answer: Reference: Person-To-Person Payments

14 Order fulfillment includes not only providing customers with what they ordered on a timely basis, but also includes all related customer services. Answer: Reference: Overview of Order Fulfillment

15 Demand uncertainties and variability along the supply chain are the primary causes of the bullwhip effect. Answer: Reference: The Bullwhip Effect

16 B2B order fulfillment is different from B2C because orders usually involve larger quantities. Answer: Reference: Order Fulfillment in B2B

Multiple Choice Questions

17 The government agency that controls the e-payment process is called the: a. b. c. d. regulator. payee. merchant. issuer. Reference: Paying with Credit Cards Online

Answer:

Introduction to E-Commerce

18 All of the following are critical factors in determining whether a particular method of epayment achieves widespread acceptance EXCEPT: a. b. c. d. independence. interoperability. portability. transferability. Reference: Characteristics of Successful E-Payment Methods

Answer:

19 The Public Key Infrastructure is/are: a. a security company that sells locking devices to protect Internet hardware components. b. the security protocols in place within an organization to safeguard the tangible computing assets of a company. c. the technical components, infrastructure, and practices needed to enable the use of public key encryption. d. the technical components, software, and procedures overseen by the government that protect the public and private hardware attached to the Internet. Answer: Reference: Public Key Infrastructure

20 An encryption key system in which the same key is used to encrypt and decrypt the message is called the: a. b. c. d. public key. asymmetric key. data key. private key. Reference: Public Key Infrastructure

Answer:

21 One encryption key system sends the same public key to all users who use the key to encrypt messages. The resulting ciphertext, however, cant be read without a private key known only by the sender. This encryption scheme is known as: a. b. c. d. private key. data key. asymmetric key. symmetric key. Reference: Public Key Infrastructure

Answer:

Payments and Order Fulfillment 22 Third parties who issue digital certificates are called: a. b. c. d. certificate brokers. certificate processors. certificate issuers. certificate authorities.

Chapter 10

Answer:

Reference: Digital Certificates and Certificate Authorities

23 A protocol developed by Netscape which handles data encryption in a transparent manner within the Web browser is called: a. b. c. d. Netscape Navigator. secure socket layer. IPSec. Verisign. Reference: Secure Socket Layer

Answer:

24 Harold uses a card to buy a baseball card online. The cost of the card is deducted from his checking account. Harold used a: a. b. c. d. credit card. charge card. debit card. e-wallet. Reference: Payment Cards

Answer:

25 The card which provides the holder credit to make purchases which are paid in full upon receipt of the monthly statement is called the: a. b. c. d. credit card. charge card. debit card. e-wallet. Reference: Payment Cards

Answer:

26 A special-purpose nonrevolving card issued to employees solely for the purpose of purchasing and paying for nonstrategic materials and services is called: a. b. c. d. a virtual credit card. a debit card. an e-wallet. a purchase card. Reference: Purchasing Cards for B2B

Answer:

Introduction to E-Commerce 27 An advantage of e-cash is: a. b. c. d.

the identity of the purchaser doesnt have to be revealed at the place of purchase. it is widely accepted offline. a critical mass of users was established in the earliest days of the Internet. it is widely accepted online. Reference: E-Cash and Innovative Payment Methods

Answer:

28 An e-reward from a merchant for visiting, registering, or purchasing from its site that can be accumulated by the buyer and traded for products at a later date is called: a. b. c. d. e-cash. a debit card. beenz. a purchase card. Reference: E-Loyalty and Rewards Programs

Answer:

29 The major source of uncertainty in supply chains is: a. b. c. d. inflation. fluctuations in foreign currency exchange rates. internal manufacturing schedules. demand forecasts. Reference: Typical Problems

Answer:

Essay Questions
30 Describe four processes involved in the order fulfillment process.

Reference: The Process of Order Fulfillment in EC