CHAPTER 1- QUIZ

HISTORY OF E-COMMERCE
1. What technological advancement played a crucial role in the
development of early forms of e-commerce, such as mail orders and
telegraph transactions?
A. Internet

B. Telegraph

C. Radio

D. Television

Answer: B

2. Which historical method laid the foundation for Electronic Data

Interchange (EDI) in business transactions?
A. Call Centers

B. Mail Orders

C. Telegraph

D. Web Businesses

Answer: C
3. In the context of e-commerce, what does EDI stand for?
A. Electronic Data Integration

B. Enterprise Data Interface

C. Electronic Data Interchange

D. Efficient Data Integration

Answer: C

4. Nowadays, what technology is fundamental to the

development of web businesses and e-commerce platforms?
A. Television

B. Telegraph

C. Internet

D. Radio

Answer: C

5. Which concept emphasizes the value of a network being

proportional to the square of the number of connected users, as seen
in the growth of social networks and e-commerce platforms?
A. Newton's Law

B. Metcalfe's Law

C. Boyle's Law

D. Kepler's Law

Answer: B
6. What is the dominant enterprise model where a single company
dominates a particular industry or market segment, often seen in
the early days of e-commerce?
A. Collaborative Enterprise

B. Decentralized Enterprise

C. Dominant Enterprise

D. Distributed Enterprise

Answer: C

7. What cost model involves the reduction of average production

costs as the scale of production increases?
A. Fixed Cost Model

B. Variable Cost Model

C. Economies of Scale

D. Break-even Cost Model

Answer: C

8. In the e-commerce business model, what term is used to describe

the different entities involved in a transaction?
A. Transaction Parties

B. Participants

C. Actors

D. Collaborators

Answer: A

9. Which type of most common e-commerce transaction involves the

direct exchange of goods or services between a buyer and a seller?
A. Business-to-Consumer (B2C)

B. Consumer-to-Consumer (C2C)

C. Business-to-Business (B2B)

D. Consumer-to-Business (C2B)

Answer: A

10. Which e-commerce business model involves a platform that

facilitates transactions between individual consumers?
A. Business-to-Consumer (B2C)

B. Consumer-to-Business (C2B)

C. Consumer-to-Consumer (C2C)

D. Business-to-Business (B2B)

Answer: C

11. What economic principle suggests that as the number of users or

participants in a network increases, the value of the network also
increases?
A. Pareto Principle

B. Gini Coefficient

C. Moore's Law

D. Metcalfe's Law

Answer: D

12. What term describes the phenomenon where the cost per unit of
output decreases with increased production volume, leading to more
efficient operations?
A. Economies of Scale

B. Law of Diminishing Returns

C. Marginal Cost Principle

D. Opportunity Cost

Answer: A

13. What is the primary advantage of the subscription-based

business model in e-commerce?
A. High initial revenue

B. Limited market reach

C. Low customer retention

D. Recurring revenue stream

Answer: D

14. What e-commerce model involves a centralized marketplace

connecting multiple big buyers and sellers, facilitating transactions
between businesses?
A. Consumer-to-Business (C2B)

B. Business-to-Consumer (B2C)

C. Business-to-Business (B2B)

D. Consumer-to-Consumer (C2C)

Answer: C

15. What type of e-commerce transaction involves an

individual consumer selling products or services to a
business?
A. Business-to-Consumer (B2C)

B. Consumer-to-Business (C2B)

C. Consumer-to-Consumer (C2C)

D. Business-to-Business (B2B)

Answer: B

16. In the context of e-commerce, what does the acronym

B2B stand for?
A. Business-to-Business

B. Business-to-Buyer

C. Business-to-Brand

D. Business-to-Bank

Answer: A

17. What is the primary focus of the freemium business

model in e-commerce?
A. Offering basic services for free and charging for premium features

B. Selling products at a premium price

C. Targeting high-income customers exclusively for sale to them.

D. Providing discounts on bulk purchases

Answer: A

18. According to the dominant enterprise model, what characterizes

a company that holds a significant market share and influences
industry trends?
A. Collaborative approach

B. Niche specialization

C. Dominant market position

D. Decentralized structure

Answer: C

19. What cost model involves the idea that the cost of adding each
new unit decreases with increased production?
A. Economies of Scope

B. Economies of Scale

C. Break-even Cost Model

D. Marginal Cost Principle

Answer: D

20. Which law states that the value of a network is proportional to the square
of the number of users connected to it?

A. Moore's Law

B. Gini Coefficient

C. Pareto Principle

D. Metcalfe's Law

Answer: D

21. In e-commerce, what does the term "Network Economy"

refer to?
A. A marketplace where only online transactions occur in marketplace

B. A closed and restricted business network

C. An economy focused on physical goods and services

D. An economic system driven by digital networks and connectivity

Answer: D

22. What is the primary focus of the collaborative enterprise

model in e-commerce?
A. Independence of entities within the network

B. Cooperation and shared decision-making

C. Dominance of a single entity

D. Strict hierarchy and control

Answer: B

23. What is the primary advantage of the marketplace

business model in e-commerce?
A. Control over pricing

B. Exclusive product offerings

C. Competition within the platform

D. Minimal transaction fees

Answer: C

24. According to the freemium business model, what is

typically offered for free to users?
A. Premium services

B. Basic services

C. Exclusive products

D. Bulk discounts

Answer: B

25. According to the freemium model, what motivates users

to upgrade to premium services or features?
A. Limited functionality in free versions

B. Lower quality of free services

C. Inability to access basic features

D. Desire for exclusivity and additional benefits

Answer: A