1.Define commerce.

Commerce is normally associated with the buying and selling of items.

2.Before the advent of networks, how was data being transferred between computers?
With secondary memories like floppies

3.Name two stages of commerce that cannot be automated.
Production of goods and delivery of goods.

4.What is the role of encryption in data transfer
To ensure security of data.

5.Name two areas which are reasons of worry in e-commerce.
Security and legal acceptance

6. List the categories of operations comes under e-commerce.
The following categories of operations comes under e-commerce.
Transactions between a supplier/a shopkeeper and a buyer or between two companies over a public network like
the service provider network (like ISP). With suitable encryption of data and security for transaction, entire
operation of selling/buying and settlement of accounts can be automated.
Transactions with the trading partners or between the officers of the company located at different locations.
Information gathering needed for market research.
Information processing for decision making at different levels of management.
Information manipulation for operations and supply chain management.
Maintenance of records needed for legal purposes, including taxation, legal suits etc.
Transactions for information distributions to different retailers, customers etc. including Advertising, sales and
marketing.







1. List any three basic needs of consumer oriented e-commerce.
Standard processes for buying and selling; well accepted hardware and software and secure
commercial and transport practices.

2. List any three basic banking activities.
Answer-
Three basic banking activities
1. Account checking,
2. ATM, payment of bills,
3. fund transfer etc.

3. What does ATM stand for?
ATM stand for Automated Teller machine

4. Why does an ATM does not involve a computer at customers level?
An ATM does not involve a computer at customers level Because any average customer is more comfortable with simply
inserting an ATM card.

5. What is the samples type of home shopping?
The channels describe the product, orders are placed over phone, delivery is made at home
and payment in the standard mode.

6. What is movie on demand?
The viewer selects the movie to view an the TV against payment.

7. Name any two concepts of TV based home entertainment?
Movie an demand and on line games.

8. What is the need for seamless connections?
So that persons with different types of hardware and software can interact easily.

9. What is the need for market place interacts?
To facilitate comparisons, negotiations, bargaining etc.

10. What is the need for settling disputes?
To ensure that disgruntled customers / traders can have a standard recourse for settlement.



11. List and explain the desirable characteristics of e-marketing.
Characteristics of e-marketing are-
1. A minimal size of the place- Obviously for any such place to thrive there is a critical size, below which it is not
profitable to operate. This minimal number of buyers and sellers characterises the profitability of the place.
2. A scope for interactions- Interactions include trial runs of the products, classifications of doubts on the part of the
customers, details of after sales services, ability to compare different products and of course scope for
negotiations and bargaining. Negotiations can be in terms of cost, value additions, terms and conditions, delivery
dates etc.
3. Scope for designing new products- The customer need not buy only what is available. He can ask for
modifications, upgradations etc. The supplier must be able to accept these and produce made to order items.
4. A seamless connection to the marketplace- It is obvious that each customer will be operating with a different
type of computer, software, connectivity etc. There should be available standards sot that any of these costumers
will be able to attach himself to any of the markets without changing his hardware/software/interfaces etc.
5. Recourse for disgruntled users- It is nave to believe that transaction of such a place end up in complete
satisfaction to all parties concerned. Especially because of the facelessness of the customer and the supplier, there
should be a standard recourse to settle such disputes.

12. Explain basic tenets of e-commerce.

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CHAPTER-3(Electronic Commerce and the World Wide Web)

1. Define EDI.
Answer-
Electronic Data Interchange.

2. Define EFT.
Answer-
Electronic Data Interchange.

3. Name a few operations performed by e-commerce.
Answer-
Payment, fund transfer, order entry, invoicing etc.

4. Define a framework.
Answer-
Framework is intended to define and create tools that integrate information.

5. List the six layers of e-commerce architecture.
Answer-
The six layers of e-commerce architecture-
1. Applications
2. Brokerage services
3. Interface
4. Secure messaging
5. Middle ware and
6. Network infrastructure
6. Name the three classes of e-commerce applications based on transactions.
Answer- Consumer to business, Business to business, intra organization.

7. Define a information Brokerage.
Answer- An intermediary who provides integration between customers and information providers

8. Define a software agent.
Answer- Agent is an encapsulation of users instructions.

9. Define middle ware.
Answer- It is a mediator between diverse application programs that talk to each other.

10. Name the three stages of e-commerce architecture on web.
Answer- The three stages of e-commerce architecture on web are
1. Client browser
2. WWW server functions and
3. Third party services.

11. With the help of an example give the meaning of secure messaging.
Answer-
Secure messaging is a server based approach to protect sensitive data when sent beyond the corporate borders and
provides compliance with industry regulations such as HIPAA, GLBA and SOX. Advantages over classical secure e-Mail are
that confidential and authenticated exchanges can be started immediately by any internet user worldwide since there is
no requirement to install any software nor to obtain or to distribute cryptographic keys beforehand. Secure messages
provide non-repudiation as the recipients (similar to online banking) are personally identified and transactions are logged
by the secure email platform.

SMTP (Simple Mail Transfer Protocol) is the de facto standard for email that traverses the Internet. In fact, the initial
specification is a standard (RFC821) first published in 1982 before the Web as we know it even existed. (For perspective,
the standard defining the URL was published in 1994.) If you send a message on the Internet, you use SMTP.
Notes/Domino fully supports SMTP messaging, providing many powerful mechanisms to keep the message secure.

12. With the help of a diagram explain e-commerce architecture.
Answer- The basic idea is that
your potential customers go to your world-wide web (WWW) page, find a product or service that they wish to purchase
from you, and then purchase it while they are at the web page. There are three
components to this architecture: the Internet, a firewall, and your organization. The Internet is where you will interact
electronically with your customers, your firewall will provide you with reasonable protection against people who wish you
harm, and your organizations systems will process the business transactions
generated on the WWW by your customers. Later in this white paper we will discuss a development approach that uses
Java and Smalltalk to support this architecture.
To understand why we need to change our systems infrastructure we must first put the requirements of electronic
commerce into perspective. Were talking about the WORLD wide web, and that means international commerce. Doing
business internationally means handling multiple languages, multiple currencies, multiple cultures, multiple tax laws, and
multiple shipping/customs rules. Its a whole new ball game folks, and we need to step up to the plate right now.

Definitions-
Electronic cash (e-cash) A digital currency used on the Internet to buy and sell products.
Electronic commerce (e-commerce) Any form of commerce in which the buyer of a product or service uses a
computer to interact with the computer system of the seller of that product or service.
Internet A collection of interconnected computers that people can log onto to share information,
tocommunicate, to be entertained, and to perform electronic commerce transactions.
Intranet A network internal to your organization that is built either partially or completely fromInternet-based
technology.
World Wide Web (WWW) A component of the Internet that provides users with the ability to movefrom
computer system to computer system by following predefined links among those systems.

13. Give the architecture framework for e-commerce.
Answer- The software framework necessary for building electronic
commerce applications is little understood in existing literature. In general a framework is intended to define and create
tools that integrate the information found in todays closed systems and allow the development of e-commerce
applications. It is important to understand that the aim of the architectural frame-work itself is not to build new database
management systems, data repository ,computer languages, software agent based transaction monitors,
or communication protocols. Rather, the architecture should focus on synthesizing the diverse resources already in place
in corporations to facilitate the integration of data and software for better applications.
The electronic commerce application architecture consists of six
layers of functionality, or services:
(1) applications;
(2) brokerage services, data or transaction management;
(3) interface, and; support layers
(4) secure messaging, security and electronic document
interchange;
(5) middle ware and structured document interchange; and
(6) network infrastructure and basic communications services,
These layers cooperate to provide a seamless transition between
todays computing resources and those of tomorrow by
transparently integrating information access and exchange within
the context of the chosen application. Electronic commerce applications are based on several elegant technologies.
But only when they are integrated do they provide uniquely
powerful solutions.
In the ensuing discussion of each of these layers, we will not
elaborate on the various aspects of the network infrastructure that transports information. These were discussed
extensively earlier and will not be addressed here. We begin our discussion with the application level services.

--------------------

CHAPTER-4 (Consumer-Oriented Electronic Commerce)

1. Name the three broad phases of consumers perspective.
Answer-
Pre-purchase determination, purchase consummation, post purchase interaction.

2. What are the categories of consumers?
Answer-
Impulsive buyers, patient buyers and analytical buyers.

3. What are the four types of purchases?
Answer-
The four types of purchases are-
Specifically planned, Generally planned, reminder purchases and unplanned purchases.

4. Why are information brokerages needed?
Answer-
To help in comparison shopping, reduce search costs and integration.

5. What issues are included in post purchase interaction?
Answer-
Inventory issues, database access issues and customer service issues.

6. Name the phases from the merchants point of view?
Answer-
Presales interaction, product service, production and delivery and post sales interaction.

7. What is order selection?
Answer-
Prioritize orders based on same factors.

8. Why is a critical mass necessary for market?
Answer-
Otherwise the cost per unit goes up.

9. What is the need for standardization?
Answer-
To move seamlessly across various hardware and software.

10. On what factors can negotiations take place?
Answer-
Over money, terms and conditions, delivery dates and evaluation criteria.

11. List the desirable characteristics of e-commerce market place?
Answer-
The following criteria are essential for consumer-oriented electronic commerce:
Critical mass of buyers and sellers. The trick is getting a critical mass of corporations andconsumers to use
electronic mechanisms. In other words, the electronic marketplace should be the first place customers go to find
the products and services they need.
Opportunity for independent evaluations and for customer dialogue and discussion. In the marketplace, not only
do users buy and sell products or services, they also compare notes on who has the best products and whose
prices are outrageous. The ability to openly evaluate the wares offered is a fundamental principle of a viable
marketplace
Negotiation and bargaining. No market place is complete if it does not support negotiation. Buyers and sellers
need to be able to haggle over conditions of mutual satisfaction, including money, terms and conditions, delivery
dates, and evaluation criteria.
New products and services. In a viable marketplace, consumers can make requests for products and services not
currently offered and have a reasonable expectations that someone will turn up with a proposed offering to meet
that request.
Seamless interface. The biggest barrier to electronic trade is having all the pieces work together so that
information can flow seamlessly from one source to another. This requires standardization. On the corporate side,
companies need compatible EDI software and network services in order to send electronic purchase orders,
invoices, and payments back and forth.
Recourse for disgruntled buyers. A viable marketplace must have a recognized mechanism for resolving disputes
among buyers and sellers. Markets typically include a provision for resolving disagreements by returning the
product or through arbitrage in other cases.

12. Explain mercantile model from consumers perspective?
Answer-
The business process model from a consumers perspective consist of seven activities that can be grouped into three
phases: pre-purchase phase, purchase consummation, and post-purchase interaction.
1. The pre-purchase preparation phase includes search and discovery for a set of products in the larger information
space capable of meeting customer requirements and products selection from the smaller set of products based
on attribute comparison.
2. The purchase consummation phase includes mercantile protocols that specify the flow of information and
documents associated with purchasing and negotiation with purchasing and negotiation with merchants for
suitable terms, such as price, availability, and delivery dates; and electronic payment mechanisms that integrate
payment into the purchasing process.
3. The postpurchase interaction phase includes customer service and support to address customer complaints,
product returns, and product defects.
Lets consider each of the consumer purchasing phases in detail.

13. Explain mercantile model from merchants perspective?
Answer-
i) Order planning and Order generation: - Order planning leads intoorder generation. Orders are generated by broadcast
ads, sending personalized e-mail to the customer, or creating web pages.

ii) Cost Estimation and Pricing: - Pricing is the bridge between customer needs and company capabilities. Pricing at the
individual order level depends on understanding, the value to the customer that is generated by each order, and
instituting a system that enables the company to price each order based on its valued and cost.

iii) Order Receipt and Entry:- In this step customer enter his order about services and products that he want to buy. This
department is staffed by very experienced employees.

iv) Order Selection and Prioritization: - In this phase CSRs decide that which orders to accept and which to decline and set
priorities because some orders are better for business.

v) Order Scheduling: - It means slotting the selected order into an actual production or operational sequence. This is very
difficult because the different functional departments like- sales, marketing, customer service etc may have conflicting
their goals.

vi) Order fulfillment and Delivery: -- This is very complex phase where the actual provision of the product or service is
made.

vii) Order Billing and Account/Payment Management:-

viii) Post-sales Service:- It play important role in companys profit equation. Depending upon the specific of the business, it
can include element as physical installation of a product, repair and maintenance. Because of the information conveyed
and intimacy involved, post sales services can affect customer satisfaction and company profit.


--------------------

CHAPTER-5 (Electronic Payment Systems)

1. What are the three types of electronic tokens?
Answer-
Cash, debit and credit (also called real time, prepaid and post paid).

2. What are the four properties that e-cash should have?
Answer-
Monetary value, inter operability, retrievability and security.

3. How does digital signature works?
Answer-
By providing two keys, one with the public and the other privately with the buyer. The
signature is coded with both.

4. What are the two desirable properties in any e-transaction?
Answer-
Anonymity and security.

5. What is double spending?
Answer-
Double spending Spending the same cash in more than one place.

6. What is the difficulty in storing e-cash?
Answer-
It does not provide interest. Also exchange fluctuations affect it.

7. What are the normal constraints put on e-cash?
Answer-
A validity limit, the more amount that can be stored, more no. of exchanges and no. of exchanges within a time period.

8. What is an electronic purse.
Answer-
It is card with a pre-determined amount of money loaded.

9. What are the three ways in which payment through credit cards can be made over the net?
Answer-
Using plain cards, encrypted cards and cards with third party verification.

10. Name any four issues addressed in a e-payment system.
Answer-
Privacy, security, database integration, brokers etc.

11. Explain the various issues to be addressed while designing e-payment system.
Answer-

12. Explain the categories of credit card payment system on on-line networks.
Answer-
We can break credit card payment on on-line networks into three basic categories:
1. Payments using plain credit card details. The easiest method of payment is the exchange ofunencrypted credit
cards over a public network such as telephone lines or the Internet. Thelow level of security inherent in the design
of the Internet makes this method problematic. Authentication is also a significant problem, and the vendor is
usually responsible to ensure that the person using the credit card is its owner. Without encryption there is not
way to do this.
2. Payments using encrypted credit card details. It would make sense to encrypt your credit card details before
sending them out, but even then there are certain factors to consider. One would be the cost of a credit card
transaction itself. Such cost would prohibit low-value payments (micro-payments) by adding costs to the
transactions.
3. Payment using third party verification. One solution to security and verification problems is the introduction of a
third party; a company that collects and approves payments from one client to another. After a certain period of
time, one credit card transaction for the total accumulated amount is completed.

--------------------

CHAPTER-6 (Inter-organizational Commerce and EDI (Electronic Data Interchange)

1. Define EDI.
Answer-
Inter-process communication of business information in standard electronic form.

2. List the four layers of EDI architecture.
Answer-
Semantic layer, standard layer, transport layer and physical layer.

3. List any two tangible benefits of EDI.
Answer-
Reduced paper based systems, improved customer service.

4. Who is liable if an EDI network fails to deliver the message?
Answer-
Not decided as yet.

5. Can the digital signature fully replace handwritten signature?
Answer- No

6. What is EFT?
Answer-
Electronic Fund transfer.

7. What is the need for open EDI?
Answer-
To allow e-commerce between two organizations for a short duration.

8. With the help of a diagram explain the flow of in formation in EDI.
Answer-

9. List the tangible benefits of EDI.
Answer-
Saving also accrue from the following improvements:
Reduced paper-based systems: EDI can impact the effort and expense a company devotes to maintaining records,
paper- related supplies, filing cabinets, or other storage systems and to the personnel required to maintain all of
these systems. EDI can also reduce postage bills because of the amounts of paper that no longer need be sent..
Improved problem resolution and customer service: EDI can minimize the time companies spend to identify and
resolve interbusiness problems. EDI can improve customer service by enabling the quick transfer of business
documents and a marked decrease in errors.
Expanded customer/supplier base: Many large manufacturers and retailers with the necessary clout are ordering
their suppliers to institute an EDI program. However, these are isolated islands of productivity because they are
unable to build bridges to other companies. With the advent of electronic commerce, the bridge is now available.

10. Explain the layered architecture of EDI.
Answer-

--------------------

CHAPTER-7 (EDI Implementation, Value-Added Networks)

1. List any four components of EDI implementation.
Answer-
EDI standard, translation software, trading partners, value added networks etc.

2. What is the common structure of EDI messages?
Answer-
Each message is made up of transaction sets which are divided into data segments, which in
turn are made up of data elements.

3. What are the four layers of EDI implementation?
Answer-
Business application layer, format conversion layer, translator layer and envelop for document
messaging.

4. List any three disadvantages of custom translators.
Answer-
They are restrictive, difficult to up date and are unsupported.

5. What are main types of EDI access methods?
Answer-
Direct dialing, limited Third party VAN and full service Third party VAN.

6. What are the costs of EDI implementation.
Answer-
Fixed costs, Maintenance fees, VAN charges.

7. List the factors that affect the fixed costs.
Answer-
Volume of documents, cost of EDI translation software and implementation time.

8. What are the disadvantages of VANs for EDI.
Answer-
Slowness, high costs.

9. List the main costs of VAN.
Answer-
Account startup costs, usage costs and interconnect costs.

10. List four advantages of Internets.
Answer-
Flat pricing, cheap access, common standards and secure.

11. How much will an EDI implementation cost?
Answer-
Prices for EDI products vary from no cost ( for very simple one-function products) to several thousands of dollars for full-
function applications.
The final cost depends on several factors:
1. The expected volume of electronic documents: Generally speaking, PC products cost less but handle only a few
documents and trading partners. Mid-range EDI packages can be a little more expensive but can handle a larger
volume of multiple document types or multiple trading partners.
2. Economics of the EDI translation software: Some products initially look like a bargain, but as needs grow, hidden
costs suddenly appear. These costs can range from new transaction sets for doing different forms to expensive
upgrades.
3. Implementation time: Some applications are easier to learn and use than others. The more time spent in training,
the more time it takes to get into production mode. If the implementation time frame is tight, it is wise to look for
a translator that doesnt require training before implementation.Maintenance fees and VAN charges can vary
considerably and as such can affect the cost of EDI systems:
4. Maintenance fees: Most companies charge an annual maintenance fee, usually a percentage of the translators list
price. This fee should include software updates, standards updates, technical support, and customer service.
5. VAN charges: VANs bill for data transmission, similar to long-distance phone calls. Come base their billing per
document & others charge based on the number of kilo-characters in each document. Some also bill for connect
time.

12. What is VAN? with the help of a diagram explain the functions of third party VAN.
Answer-
A VAN is a communications network that typically exchanges EDI messages among trading partners. It also provides other
services, including holding messages in electronic mailboxes, interfacing with other VANs and supporting many
telecommunications modes and transfer protocols.

13. What is EDI? List the factors that make the inteRnet useful for EDI
Answer-

--------------------

CHAPTER-8 (Intra organizational Electronic Commerce)

1. What is work flow management?
Answer-
It is the concept of task coordination for better results.

2. What are the two main issues that are focused by customization?
Answer-
Time to market and flexible operations.

3. What is supply chain management?
Answer-
It is the chain of suppliers and customers for a particular business.

4. What is the main disadvantage of vertical organization?
Answer-
It allows gaps to exist between employees of different departments.

5. What is the main difference between horizontal and vertical organizations?
Answer-
Horizontal organization is two tiered as against multiple tiered organization.

6. Define virtual organization?
Answer-
It is a network closely coupled upstream with suppliers and downstream with customers.

7. What are the two approaches of virtual organization?
Answer-
Downward and lateral.

8. What are the two main categories of SCM?
Answer-
Push based and pull based.

9. What are the primary elements of SCM
Answer-
Logistics, integrated marketing and agile manufacturing

10. What is meaning of push based and pull based supply chains.
Answer- A push strategy within the advertising/marketing industry involves directing marketing efforts at resellers. The
success of the marketing depends on the ability of these intermediaries to market the product. The goal of a push strategy
is to make the customer aware of the product/brand at the point of purchase. Examples of push strategy tactics include
displaying the product near the register, a packaging design to encourage purchase, and direct selling to customers at
stores.

A pull strategy encourages the consumer to actively seek out your product/brand. The idea is to "get the consumer to
come to you." This intensifies consumer demand by directing marketing strategies at the consumer. Examples of pull
strategy tactics include advertising, mass media promotion, and word of mouth promotion.



--------------------

CHAPTER-9 (The Need for Computer Security)

1. What are the two basic types of physical data security?
Answer-
Data integrity and Data availability.

2. Name the two type of threats to data.
Active threats and passive threats.

3. What is masquerade?
The attacker pretends to e some one else.

4. What is IP spoofing?
Answer-
It is a tool that intruders use to take over an open terminal and login connections after they
get root access.

5. What is Telnet?
Answer-
Telnet enables users to log in to remote computers.

6. What is the basic principle of kerberos?
Answer- It provides authentication to messages in an open network.

7. What is the unit over which kerberon acts?
Answer- Tickets

8. What are the three ownership groupings in unix files?
Answer-
Owner, user, others.

9. What are the three levels of file access permissions in unix?
Answer-
Read, write and execution.

10. What are the three main categories of fire walls?
Answer-
Packet filters, application level gateways and proxy servers.

11. Give the remarks on hacking technionces.
Answer-

12. What is the meaning of Active and passive theats.
Answer-

13. List the guidelines to be followed for security policy?
Answer-

14. List the issues to he addressed while displaying a security policy.
Answer-

15. Differntiate between viruses and worrms.
Answer-

16. Explain the most prominent secure transmission protocol for web communications.
Answer-

--------------------

CHAPTER-10 (Approaches to Safe Electronic Commerce)

1. List the four basic goals of electronic Security?
Answer-
Privacy, Integrity, authentication and availability.

2. What is non-repudiation?
Answer-
A person cannot deny after having sent / received a message.

3. What is key Management?
Answer-
To create, distribute, revoke and manage keys.

4. What is encryption of data?
Answer-
Encoding of data with a suitable key.

5. What is the encryption algorithm on which SSL depends?
Answer-
The RSA algorithm.

6. What are basic elements in a SEPP process?
Answer-
Card holder, merchant, acquirer and certificate management systems.

7. What does SET stand for?
Secure Electronic Transaction.

8. What is meant by integrity of data?
The contents should not get changed.
9. List the key functions of SET specification.

10. Lisy the major business requirements addressed by SEPP.
Answer-

11. Explain S-HTTP and SSL protocols.
Answer- S-HTTP (Secure HTTP) is an extension to the Hypertext Transfer Protocol (HTTP) that allows the secure exchange
of files on the World Wide Web. Each S-HTTP file is either encrypted, contains a digital certificate, or both. S-HTTP is more
likely to be used in situations where the server represents a bank and requires authentication from the user that is more
secure than a userid and password. S-HTTP does not use any single encryption system, but it does support the Rivest-
Shamir-Adleman public key infrastructure encryption system. A number of popular Web servers support both S-HTTP and
SSL. Newer browsers support both SSL and S-HTTP. S-HTTP has been submitted to the Internet Engineering Task Force
(IETF) for consideration as a standard. Request for Comments (RCFs) Internet draft 2660 describes S-HTTP in detail.
Ssl Stands for "Secure Sockets Layer." SSL is a secure protocol developed for sending information securely over the
Internet. Many websites use SSL for secure areas of their sites, such as user account pages and online checkout. Usually,
when you are asked to "log in" on a website, the resulting page is secured by SSL.
SSL encrypts the data being transmitted so that a third party cannot "eavesdrop" on the transmission and view the data
being transmitted. Only the user's computer and the secure server are able to recognize the data. SSL keeps your name,
address, and credit card information between you and merchant to which you are providing it. Without this kind of
encryption, online shopping would be far too insecure to be practical. When you visit a Web address starting with "https,"
the "s" after the "http" indicates the website is secure. These websites often use SSL certificates to verify their
authenticity.