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electronic commerce
Questions and Answers of
Electronic Commerce
In one or two paragraphs, explain the difference between an open loop and a closed loop payment card processing system.
In one or two paragraphs, describe the role of an acquiring bank in processing online payment transactions.
What is a store charge card and how is it different from a credit card?
In about 100 words, explain why an acquiring bank would normally evaluate the creditworthiness of a business before opening a merchant account to process credit card transactions for that business.
What is a payment card interchange network?
In about 200 words, explain what function is performed by payment processors and briefly describe how each of the two types of payment processors performs this function.
What is a credit card association?
In about 100 words, explain why stored-value cards that are NFC enabled were slower to catch on in the United States than in Europe and Asia.
What is a credit card association?
Bitcoin has fluctuated widely in value since its inception. In about 100 words, outline the reasons that a cryptocurrency might fluctuate to a greater degree than most other currencies.
Some anonymous digital cash products are touted as being free from the constraints of any banking system or government regulation. In about 100 words, evaluate this claim and outline how such a
What is an acquirer fee and what services does it cover?
In one or two paragraphs, explain what the Check 21 law facilitates and explain what it was intended to accomplish.
Name one factor that affects the rate charged as an interchange fee.
In about 100 words, explain how a phishing attack could be used to perpetrate identity theft Include a brief description of countermeasures that might prove effective in thwarting such an attack.
Why do online merchants often ask a customer to provide their credit card’s CVN?
Name three types of businesses that might use an ACH network.
What is a payment gateway?
Briefly explain the key differences between a stored-value card that uses a magnetic strip and one that uses an embedded microchip.
What are the two types of storage available for digital cash?
Briefly describe the double spending issue with digital cash.
What is a digital wallet?
Why is privacy a concern for users of a digital wallet?
What is the meaning of “float” as the term is used in the financial services industry?
What is a phishing attack?
What is identity theft?
What is a zombie farm?
What are the two keys to successful implementation of an information technology project?
What specific information is provided by a return-on-investment (ROI) calculation?
What is late outsourcing?
In about 300 words, explain how incubators and accelerators work. In your answer, compare these two approaches and provide at least one example of each.
What is a venture capitalist?
Davis Humanics (DH) is a company founded in 1982 that provides human resources services to about 7000 companies with a total of nearly 100,000 employees. These services include payroll processing,
Bill Gross started his first company (a solar-powered device manufacturer) when he was 15 years old. After graduating from Caltech, he started an audio equipment manufacturer that was sold to Lotus
Midtown Bistro, a local restaurant, has hired you to help them develop a new online business initiative. The company wants to use social networking actively in its marketing plan and integrate it
Provide two brief examples of business strategies that might be included in the plan for an online business initiative.
In about 100 words, name four activities that a business might want to accomplish online and for each activity, briefly explain why its success might be difficult to measure.
What is the goal of a downstream strategy?
In about 100 words, explain why companies began creating pilot Web sites during the second wave of electronic commerce.
What is the goal of an upstream strategy?
In a paragraph or two, outline two online activities that businesses can use to improve the value they provide to customers.
How might an online retailer measure increased customer satisfaction?
In about 100 words, list and briefly describe four specific activities that a company might undertake in the formation of an online business initiative.
In the third wave of electronic commerce, businesses no longer limit their vision of online activity to Web sites. In two or three paragraphs, outline at least two online business implementations
Provide one brief example of an opportunity cost.
No matter how a company measures the benefits provided by an online business implementation, it usually tries to measure those benefits in monetary units. In a paragraph or two, explain why this is a
What is an angel investor?
In one paragraph, name and briefly describe two specific costs that might be included in the total cost of ownership of an online business initiative.
The cost of launching an online business has increased steadily since the early years of electronic commerce. In about 100 words, explain why this change has occurred
What is an initial public offering (IPO)?
In about 100 words, explain the advantages and disadvantages of using ROI to evaluate online business proposals.
What is a capital project?
In two or three paragraphs, explain why early outsourcing is often used for some parts of online business initiatives.
In about 100 words, outline the functions of project management software. In your answer, explain what problems this type of software is designed to prevent.
What is component outsourcing?
What is project management?
What is the function of a database administrator in an online business operation?
What is a postimplementation audit?
What is change management?
Using your favorite search engine or the resources of your library, identify firewall issues that might arise for a company that uses cloud computing in its online sales system. In about 100 words,
Why is an SSL-EV digital certificate superior to an ordinary digital certificate.
What is remote server administration?
How might a dynamic pricing management program increase sales?
In two or three paragraphs, explain the difference between page-based application and component-based application systems. In your answer, be sure to outline which is preferable in an online business
Name four types of information that might be useful inputs to a customer relationship management (CRM) system.
In about 100 words, summarize the advantages and disadvantages of using a mall-style commerce service provider such as eBay Stores or Amazon.com’s Pro Merchant program instead of operating a
Refer to Figure 10-1. In two paragraphs, identify and briefly describe two threats that you would place in Quadrant III and explain why you would classify them as Quadrant III threats.
In one or two paragraphs, explain the functions of supply chain management software.
Write a paragraph in which you explain the purpose of cloud computing.
Adobe Analytics offers a number of software products and tools that companies can use to generate detailed reports for online business managers about the amount and nature of their Web site traffic.
Briefly explain the difference between physical and logical security.
Best Cutting Boards (BCB) makes and sells handcrafted wood cutting boards online. BCB offers about 100 different products for sale on its Web site, which sees about 9000 visitors per month. The
You are an information technology (IT) consultant to Materials Equipment, Inc. (MEI), a major industrial equipment distributor. Its products include materials-handling machinery for
What is a countermeasure?
In about 100 words, explain the difference between session cookies and persistent cookies. In your answer, be sure to include how each type of cookie is used.
What is a white hat hacker?
Write a paragraph in which you explain the concept of a sandbox and describe how it can be used to reduce security risks in client computers.
Briefly explain what secrecy, integrity, and necessity are in the context of computer security.
In a paragraph or two, explain what a botnet is and how it could cause more damage than a single Trojan horse attack.
What is a man-in-the-middle exploit?
In about 100 words, explain what assurances a certification authority (CA) provides to a business that purchases one of its digital certificates. In your answer, describe what general procedures a CA
What is a security policy?
Provide one example of an integrity violation.
In a paragraph or two, describe the purpose and use of a sniffer program.
In about 100 words, describe the function of an anonymous Web service and explain why an individual or company might want to use such a service.
What is a session cookie?
What is a third-party cookie?
In about 200 words, explain the differences between private-key encryption and public-key encryption. In your answer, include examples of when and why each might be used.
What is a Web bug?
What is active content?
What is a scripting language?
What is a zombie?
What is a macro virus?
How is a multivect or worm or virus a more severe threat than other worms or viruses?
What is signed code?
What is a biometric security device?
What is a backdoor?
Who are most likely to be victimized by a phishing expedition?
Briefly describe what occurs in a denial-of-service attack.
What is a hash algorithm and when might it be used?
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