Test bank accounting information system by turner 14 chapter

To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com ACCOUNTING INFORMATION SYSTEMS CONTROLS AND PROCESSES TURNER / WEICKGENANNT CHAPTER 14: E-Commerce and E-Business TEST BANK – CHAPTER 14 – TRUE / FALSE E-business is the use of electronic means to enhance business processes E-commerce is electronically enabled transactions between a business and its customers E-commerce is the use of electronic means to enhance business processes E-commerce only involves transactions between the business and its customers Packet switching is the method used to send data over a computer network A router is an electronic hardware device that is connected to each computer to connect it to a network A protocol is a standard data communication format that allows computers to exchange data TCP/IP is an abbreviation for terminal communications protocol/Internet protocol The Internet (interconnected networks) serves as the backbone for the World Wide Web (WWW) 10 A backbone provider is an organization such as the National Science Foundation (NSF) which funded the Internet and/or the WWW 11 Regional ISPs connect to the backbone through lines that have less speed and capacity than the backbone 12 Local ISPs connect to the backbone through lines that have less speed and capacity than the backbone 13 A web server is a computer and hard drive space that connects to the backbone through lines that have less speed and capacity than the backbone 14 A web server is a computer and hard drive space that stores web pages and data To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 15 The standard form of encryption embedded in e-commerce sites and in web browser software is “Safe Sending Language” (SSL) 16 Due to interstate trade events and taxation issues the U.S Government has standardized the definition of e-commerce 17 The common term for business-to-consumer e-commerce is B2C The common term for business-to-business electronic sales is B2B 18 E-commerce provides the potential for much richer marketing concepts that include video, audio, product comparisons, and product testimonials or product tests 19 Because of computer interaction and the capability of almost instant verification business across the World Wide Web has a lower probably of fraud, hackers, and compromised customer privacy 20 The AICPA Trust Services Principles not protect the history of purchases since these are classified as “public knowledge events.” 21 The AICPA Trust Services Principles state that the customer should be given the choice regarding the collection and retention of data 22 The AICPA Trust Services Principles state that the customer need not be contacted if a business is going to release non-sensitive information about the customer to a third party 23 The supply chain is the linked processes from the raw material vendor through the manufacturer ending at the stage of finished goods 24 The supply chain may be larger at either or both ends as more than one vendor may supply the same materials and more than one customer may purchase the finished products 25 A strength of the supply chain concept is that inconsistencies or poor quality within the supply chain will be compensated by other strengths resulting in an overall satisfactory product 26 An example of vertical integration is a manufacturer who mines the raw materials, produces the product, and then sells it in company owned stores 27 The differentiating factor between B2C and B2B is where B2C might purchase two books; a B2B purchase might involve ten thousand books To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 28 One advantage in the B2B e-business environment is that operations costs can be reduced through inventory reductions and efficiencies can be increased by location of nearby assets when needed 29 An intranet is a private network accessible only to the employees of a company 30 Because intranets not transmit information through the Internet or WWW they not use protocols such as TCP/IP 31 An extranet is similar to an internet except that it offers access to a greater number of sites than a standard Internet or WWW connection 32 One characteristic that the Internet, intranets, and extranets have in common is that they are all networks that are intended for the sharing of information and the conducting of transactions 33 The general public has general access to the intranet and extranet networks 34 XML is a rich language that facilitates the exchange of data between organizations via web pages 35 In XBRL complex financial statements are presented only in a static mode 36 Traditional EDI is a real-time processing system due to the 24 hour, day a week operation of computers and servers 37 Management has an ethical obligation to create and enforce policies and practices which ensure that private customer data are not misused 38 Because of their sensitive nature, companies seldom sell or share customer lists or customer data 39 While there is no requirement to disclose a privacy policy on a website, it is an ethical obligation to disclose and follow the policy To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com ANSWERS TO TEST BANK - CHAPTER 14 - TRUE/FALSE: T T 17 T T 10 F 18 T F 11 T 19 F F 12 F 20 F T 13 F 21 T F 14 T 22 F T 15 F 23 F F 16 F 24 T 25 26 27 28 29 30 31 32 F T T T T F F T 33 34 35 36 37 38 39 F T F F T F T To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com TEST BANK – CHAPTER 14 – MULTIPLE CHOICE 40 E-commerce: A is business-to-business electronic trading and process integration B is electronically enabled transactions between a business and its vendors C is electronic recording and control of internal processes D is electronically enabled transactions between a business and its customers 41 E-business: is a narrower concept than e-commerce services the customers and the vendors is electronic recording and control of internal processes uses electronic means to enhance business processes A only B and only C 2, 3, and only D 1, 2, 3, and 42 The A B C D internal processes of e-business not include: access to personnel records access to fringe benefit information on-line sales to customers travel and expense reporting 43 E-commerce: A sales will usually be large dollar amounts with only a few items are sold B is the sale of goods or services from a business to retailers C is the sale of goods or services to an end-user consumer D Both A and B are correct answers 44 E-business includes the sale of raw materials between companies includes using the Internet as an electronic network sales will usually be smaller dollar amounts with many sales is a broader concept than e-commerce A 1, 2, 3, and B 2, 3, and only C 1, 3, only D 1, 2, and only To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 45 Packet switching is a method of: A turning routers off and on to send messages between computers B dividing large messages into bundles for transmission over a network C isolating computers connected to the network by disconnecting them D keeping all associated bundles of the message on one network path 46 The A B C D transmission of packets: must be determined by the sender manually must be accomplished via the same network path allows great versatility in the transmission of data has diminished because of advances in connectivity 47 The A B C D transmission of packets: are usually sent in sequential order must be received in sequential order must follow the same network path will bundle small messages into larger bundles for transmission 48 A router is: A a software application that creates path instructions for packets B is hardware that connects two or more networks C must receive its instructions from the user manually D Both B and C are correct 49 The proper actions and capabilities is: A packet switching bundles small messages into large messages for transmission while routers determine the best path through the network B packet switching replaces the need for routers to determine the best path for the message through the network C packet switching and routers both bundle small messages into large messages for transmission D packet switching divides large messages into small bundles for transmission while routers determine the best path through the network 50 A protocol is required so that: A computers from the same manufacturer can communication with each other B computers from different manufacturers can communicate with each other C so that communications within the network can be routed properly D Answers A, B, and C are all correct To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 51 Protocols can be considered: A a proprietary language to a specific computer manufacturer B a language native to the network so all computers can translate it C unnecessary if the computer is communicating on a LAN D unnecessary if the computer is using packet switching and routers 52 TCP/IP is: A trunk controlling protocol/intranet protocol B transmission control protocol/intranet protocol C trunk controlling protocol/Internet protocol D transmission control protocol/Internet protocol 53 The ARPANET was: A restricted to universities, libraries, research organizations, and commercial carrier access B was designed in the 1990s to augment the growing Internet and intranet systems C does not require the use of protocols such as TCP/IP because of the limited access D restricted to universities, libraries, and research organizations 54 The A B C D Internet: is a series of LANs connected together to increase their local capability is a series of networks connected to provide a global connectivity is generally restricted to universities, libraries, and research organizations utilizes the World Wide Web as a backbone to increase its capabilities 55 The A B C D Internet: utilizes LANs as a backbone to increase connectivity is a system of unconnected networks utilizes the World Wide Web as a backbone is compatible to graphic user interface tools 56 The A B C D expansive growth of web servers occurred: in the early 1990s – 1990~1994 in the mid 1990s – 1993~1996 in the late 1990s – 1995~2000 in the early 2000s – 2000~2004 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 57 The proper sequence of Internet connectivity between users is: A regional ISP to national backbone provider to regional ISP B local ISP to national backbone provider to network access point to national backbone provider to local ISP C regional ISP to national network access points to regional ISP D local ISP to regional ISP to national backbone provider to network access points to national backbone provider to regional ISP to local ISP 58 A backbone provider is an organization: A that provides direct Internet access to the end users B that provides regional ISPs direct access to the Internet C that provides high-speed access to local ISP users D that provides high-speed access to regional ISP users 59 The A B C D Internet backbone is: the network between the network between the network between the network between the local ISP and the regional ISP the regional ISP and the local ISP the local ISP and the national backbone provider national backbone providers 60 Regional ISPs: A connect directly to the Internet backbone through network access points B connect to the Internet backbone through local ISPs utilizing network access points C provide the connection between local ISPs and national backbone providers D provide end users direct connects to the Internet backbone through network access points 61 Regional ISPs not include: A EarthLink B BellSouth C MCI D America Online 62 Backbone providers would not include: A MCI B Sprint C America Online D BBN To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 63 Local ISPs would include: A MCI and Sprint B America Online and EarthLink C BBN and a local cable company D television and cable companies 64 A web server is: A always located at national backbone provider levels B always located at regional ISP provider levels C is a computer and hard drive space that stores web pages and data D always the access between the national backbone provider and the backbone 65 HTML is: A a language which allows computers to connect to the Internet and WWW B a protocol language allowing user level computers to connect to local ISPs C is a language utilized to present website words, data, and pictures D used for information sharing between the Internet and WWW 66 HTML allows: A user level computers to connect to the Internet through an ISP B user level computers a way to display information the way it was intended to be displayed C local and regional ISPs to interact with national backbone providers D national backbone providers to exchange information about trunk traffic 67 An example of a URL is: A cjb@jhs-email.com B http://www.cjb.org C jhs-email.com D All of the above, A, B, and C, are examples of URLs 68 Select the true statement from the following A URL stands for uniform real-time locator while http stands for hypertext transmission protocol B URL stands for uniform resource location while http stands for hypertext translation protocol C URL stands for uniform resource locator while http stands for hypertext transmission protocol D URL stands for uniform real-time location while http stands for hypertext transmission protocol To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 69 When a valid URL is entered into your web browser: A your computer will send a network access protocol (NAP) command to your network server B your computer will send an http command to your internet access point requesting information C your command will be translated into TCP/IP and sent directly to a national backbone provider D your computer will directly access the Internet and WWW in its search for the information 70 HTTP stands for: A hypertext transmission protocol B hypertransmission terminal protocol C hypertext terminal protocol D hypertext translation protocol 71 An example of a domain name is: A jhs-email.com B cjb@jhs-email.com C http://www.cjb.org D All of the above, A, B, and C, are examples of domain names 72 A URL is converted to an IP: A by TCP/IP capabilities of the user level computer B by a DNS accessed when the browser sends the command C by the local ISP provider D by the national backbone provider 73 SSL A B C D – secure sockets layering: reduces the frequency of Internet connection disconnects ensures that TCP/IP is correctly configured for Internet browsing is an effective way to prevent web pages from denial of service attacks is an encryption system which reduces the probably of improper use of transmitted data 74 The A B C D ways to determine a secure sockets layering connection is: the “s” at the end of “www” the “s” at the end of “http.” the padlock on the lower bar of most web browsers Both answers, B and C, are correct 10 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 115 Internet EDI, or EDIINT, features all of the following except: A low cost B heavy infrastructure C industry standard D entire supply chain integration 116 Value added networks or VANs, features all of the following except: A transaction fees B complicated C industry standard D limited access 117 As a metalanguage, XML: A places a data tag that the beginning and end of each page identifying the contained data B places a data tag that the beginning and end of each data item identifying the contained data C places a data tag only at the beginning of the data identifying the following data item D is usable on both EDI and EDIINT networks 118 XBRL: A is a language that allows data extraction from financial statements B is the base or core language for XML, also a metalanguage C requires that financial statements be submitted in printed format D Both answers B and C are correct 119 Companies that engage in e-commerce, B2C sales with consumers: A have the legal obligation of complying with the AICPA Trust Services Principles B have the same kind of obligations to conduct their business ethically as companies transacting business any other way C have legal obligations that suggest that customers should be so informed regarding customer privacy D are required by law to have a local presence for the resolution of customer complaints 19 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com ANSWERS TO TEST BANK - CHAPTER 14 – MULTIPLE CHOICE: 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 D C C C D B C A B D D B D D B C 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 C D D D C C C D C C B B C B A A 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 20 B C C B C A B D B C B A C C A C 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 D A C B C A D B B C A C C A D B 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 D B A C D D B D A C D B D B A B To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com TEXTBOOK – CHAPTER 14 – END OF CHAPTER QUESTIONS 120 Which of the following statements is true? A E-business is a subset of e-commerce B E-commerce is a subset of e-business C E-business and e-commerce are exactly the same thing D E-business and e-commerce are not related 121 An electronic hardware device that is located at the gateway between two or more networks is a A packet switch B URL C router D protocol 122 The type of organization that serves as the main trunk line of the Internet is called a A local ISP B regional ISP C global ISP D backbone provider 123 Which of the following is not a direct advantage for the consumer from commerce? A Access to a broader market B More shopping convenience C Reduced order-processing cost D Information sharing from the company 124 Each of the following represents a characteristic of B2B commerce except A electronic data interchange B electronic retailing C data exchanges D preexisting business relationships 125 Each of the following represents an application of B2C commerce except A software sales B electronic retailing C data exchanges D stock trading 21 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 126 Before forwarding customer data, an organization should receive explicit or implicit consent of the customer This describes which of the AICPA Trust Services Principles online privacy practices? A Consent B Use and retention C Access D Onward transfer and disclosure 127 Which of the following process within a supply chain can benefit from IT enablement? A All process throughout the supply chain B Only internal process within the supply chain C Only external process within the supply chain D exchange process between a company and its suppliers 128 When a company has an e-business transaction with a supplier, it could be using A the Internet B an intranet C an extranet D Either the Internet or an extranet 129 Intranets are used for each of the following except A communication and collaboration B business operations and managerial monitoring C web publishing D customer self-service 130 When there is no necessity for a preexisting relationship between buyer and seller, that transaction is more likely to b classified as A B2B B B2C C B2E D Either B2B or B2C 131 Which of the following IT controls would not be important in an extranet? A encryption B Password C Antivirus software D Penetration testing E All of the above are important IT controls 22 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 132 A company’s computer network uses web servers, HTML, and XML to serve various user groups Which type of network best serves each of the following users? Employees Suppliers A Intranet Extranet B Intranet Internet C Internet Extranet D Internet Internet 133 An extensible markup language designed specifically for financial reporting is A Internet DI B XML C XBRL D XFRL ANSWERS TO TEXTBOOK – CHAPTER 14 – END OF CHAPTER QUESTIONS 120 B 121 C 122 D 123 C 124 B 125 C 126 D 127 A 128 D 23 129 A 130 B 131 E 132 A 133 C To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com TEST BANK – CHAPTER 14 – SHORT ANSWER QUESTIONS 134 How e-commerce and e-business differ? Answer: E-business is a very broad concept that includes any electronically enabled business process E-business can include electronic enhancements of processes with trading partners, as well as internal processes E-commerce is a subset of e-business and it includes electronic sales between a retail business and an end consumer Ecommerce is conducted via the Internet, while e-business could use the Internet as well as other electronic means 135 What was the original purpose of the network of computers that eventually became the Internet? Answer: The original purpose was to facilitate communication and sharing of work between universities engaged in research for the Department of defense 136 Why was ARPANET designed with many different alternative routes for network traffic? Answer: ARPANET was designed during the height of the Cold War with the USSR and there were many fears of nuclear attack A design with many alternative routes could still operate if a nuclear attack destroyed one or more of those routes 137 Why is a standard protocol necessary in computer networks? Answer: There may be many different brands or types of computers on a network, and these computers could use different operating systems In order for these various computer systems to communicate, there must be a standard protocol The protocol establishes the common communication method 138 How quickly did Internet usage by the public grow after the Internet was opened to business transactions in 1994? Answer: The public use of the Internet exploded in growth after it was opened to business transactions This was especially true in the 1998 to 2001 period 139 Describe the relationship between national backbone providers, regional ISPs, and local ISPs? Answer: Backbone providers make up the main trunk-lines of the Internet They are made up of high capacity , high speed lines Regional Internet Service Providers (ISP) connect to the backbone providers with lines with less speed and capacity than backbone providers The local ISPS then connect to the regional ISPs and these local ISPs provide Internet connect to local customers 24 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 140 What is the importance of a standard formatting language for Web pages and a standard addressing system? Answer: The standard formatting language for web pages is HTML A standard formatting language is necessary to show a web page in the same form on the many different kind of computers connected to the World Wide Web There is a similar reason to have a standard addressing system Various types of computers need a way to locate the desired web site If a standard method of accessing web sites exists, the computer browsers can be built to use the standard addressing system on the various kinds of computers 141 Which types of costs can be reduced when a company decides to engage in B2B e-commerce on the Internet? Answer: Marketing costs, order processing costs, and distribution costs can be reduced by engaging in B2C sales 142 What are the differences between brick and mortar retailers and clicks and mortar retailers? Answer: Brick and mortar refers to retailers that sell in traditional forms in a building that customers visit to make a purchase Clicks and mortar refers to retailers who have traditional sales in a building, but also sell to customers via the Internet 143 According to the Online Privacy section of the AICPA Trust Services Principles, what types of personal information should be protected? Answer: All information collected from customers should remain private unless the customer has given implicit or explicit permission to share such information with third parties In addition, companies should collect only data necessary to conducting the transaction 144 If you could condense the ten areas of Online Privacy in the AICPA Trust Principles, into a shorter list (three, four, or five point list), how would you word that list? Answer: Collect only necessary data, keep that data private unless the customer gives permission to share it, make sure you have enforced policies to store and use the data as the customer intends you to use it, notify the customer of how you intend to use the data 145 What is meant by “monitoring and enforcement” regarding online privacy practices? Answer: It means that a company should continuously monitor how well it follows its privacy practices and that they must put processes in place to ensure privacy practices are followed 25 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 146 How is E-business a more broad concept than e-commerce? Answer: E-commerce refers to web-based sales between a business and an end consumer E-business is a much broader concept that includes electronic forms of process improvement throughout the supply chain Thus it can include processes between a business and its suppliers, a business and its customers, or internal processes It also includes many forms of electronic enhancement beyond webbased 147 Describe the concept of a supply chain Answer: It is the set of linked activities from the acquisition and delivery of raw materials, through the manufacture, distribution, and delivery to a customer Why is it important to insure an efficient flow of goods throughout the supply chain? Any slow-down or bottle neck in the supply chain can slow or stop the entire supply chain 148 Which functions within the supply chain can be enhanced through the use of ebusiness? Answer: Virtually any process within the supply chain can be enhanced through ebusiness 149 How are activities in the supply chain interdependent? Answer: They are interdependent in that one step in the supply chain drives the following step For example, a secondary supplier must provide products to a supplier, who then converts it to a product to be sold to the manufacturer 150 In what ways are the characteristics of e-business different from e-commerce? Answer: E-business is often business to business, while e-commerce is business to consumer In an e-business order, it is likely to be a large dollar order, with many line items, and with a business that we have a pre-existing relationship An ecommerce order may be from an unknown customer and each order may be a small dollar amount, but a large volume of orders E-commerce transactions are likely to be credit card transactions while e-business transactions are likely to involve purchase orders and invoices 151 What are the three levels of network platforms that are utilized in e-business and which groups use each level? Answer: The Internet is used by internal and external users, potentially including anyone in the world Extranets are used by trading partners and are not available to the entire world Intranets are used by employees within the company 26 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 152 Which type of users should have access to an intranet? Answer: Only those inside the company 153 Which type of users should have access to an extranet? Answer: Trading partners such as suppliers, secondary suppliers, and distributors 154 What types of controls should be used to properly limit access in intranets and extranets? Answer: Authentication controls should be used, including controls such as user Ids, passwords, access levels, computer logs, and authority tables Also, hacking and break-in controls should be used These include controls such as firewalls, encryption, security policies, VPN, vulnerability assessment, penetration testing, and intrusion detection 155 Why is the use of XML advantageous in Internet EDI? Answer: XML allows a more rich exchange of data than traditional EDI For example, it could allow the exchange of product descriptions, pictures, or even databases of information regarding products 156 In what ways are XBRL financial statements advantageous when compared to traditional paper financial statements? Answer: XBRL statements can be viewed by a browser, or printed In addition, the viewing of an XBRL statement on a web browser could be much more interactive For example a reader of the statements could click on an item such as sales to see more underlying detail of the sales total 157 What are some of the ethical obligations of companies related to e-commerce? Answer: Companies have an obligation to collect, store, and use customer data in a ethical manner These obligations are described in the ten privacy practices of the AICPA Trust Services Principles 158 Is there a difference between ethical obligations and legal obligations in regards to online privacy? Answer: Yes, for example, there is no legal obligation to have a privacy policy displayed on the company web site However, companies that wish to be very ethical should display privacy practices 27 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com TEST BANK – CHAPTER 14 –SHORT ESSAY 159 Much of the e-business and e-commerce conducted by companies uses the Internet as the form of electronic communication Describe other electronic means to conduct e-business or e-commerce Answer: Electronic Data interchange (EDI) and Electronic Funds Transfer (EFT) are other communication means 160 How does the use of HTML, URLs, domain names, and SSL contribute to an Internet that can be used world-wide? Answer: There are many different types or brands of computers throughout the world and these computers use different operating systems There must be some common standards within the Internet to allow these various types of computers to read and interact with the Internet HTML, URLs, domain names, and SSL are all standards in use world-wide that facilitate a user-friendly Internet Without such common standards, it would not be as easy to connect to and use the Internet 161 Describe the benefits to the consumer of B2C sales Answer: Customers benefit in through increased access, speed, convenience, and information sharing inherent in B2C sales They have access to a broader market, 24 hours a day, every day, and therefore more product choices B2C also often results in lower prices, quicker deliver, and marketing targeted specifically to the customers’ needs Customers also sometimes have the opportunity to conduct live chats with company representatives, or can view FAQs about the products 162 Describe the benefits to the company of B2C sales Answer: Benefits to the company are: a broader market of customers beyond the geographic area of any stores they maintain; reduced marketing, order processing, and distribution costs; higher profits; the ability to conduct richer marketing; and the ability to react quickly to market changes 163 Describe the benefits to a company that engages in B2B transactions via the Internet Answer: They are a wider potential market, reduced transaction cost, higher profits, faster cycle times for product purchase or sale and cash flow, reduction in keying of information and reduced data errors 164 What are the ten areas of privacy practices described in the Online Privacy section of the AICPA Trust Services Principles? Answer: The ten areas are: management, notice, choice and consent, collection, use and retention, access, disclosure to third parties, security for privacy, quality, monitoring and enforcement 28 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 165 Describe the activities that take place in the supply chain of a manufacturing firm Answer: Before a manufacturer can produce goods, it must buy raw materials from suppliers Often those suppliers also need to purchase raw materials, so there are secondary suppliers in the supply chain The internal processes of manufacturing are also part of the supply chain Upon completion, products must be distributed through warehouses or distributors to retailers, who then sell these goods to customers 166 Describe the differences between B2C and B2B Answer: B2C is a sale between a company and an end consumer B2B is a sale or purchase between two companies The differences in these types of transactions causes many differences in the characteristics of the transactions A B2B sale is likely to be ordered via a purchase order, with many line items on the purchase order, with a relatively high total dollar amount These B2B sales are between companies with preexisting relationships in which they have negotiated specific shipping instructions or prices B2C sales are relatively smaller dollar amounts, but with a larger volume of sales transactions It may be a sale to a customer with no preexisting relationship to the company and it is likely to be a credit card sale 167 Explain the importance of user authentication and network break-in controls in extranets Answer: Only trading partners such as suppliers, secondary suppliers, distributors, or retailers should have access to an extranet That is, it should not allow any user on the web to log in Thus, there must be extensive authentication controls These controls in include user Id, password, log in procedures, biometric devises or security tokens, computer logs, and authorization tables Since the extranet often uses internet network facilities, it can be susceptible to hackers or other network break-ins Controls such as firewalls, encryption, SSL, vulnerability assessments, penetration testing, and intrusion detection must be used 168 What are the advantages of Internet EDI over traditional EDI? Answer: The Internet allows cost-free exchanges of data In traditional EDI, the companies usually pay a VAN for network capabilities and communication The software and systems for Internet EDI are also simpler and cheaper than those for traditional EDI Even very small companies can afford hardware and software to conduct Internet EDI 29 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com TEST BANK – CHAPTER 14 – PROBLEMS 169 Explain the hardware or standards that were developed during the ARPANET that were an important foundation for the Internet of today There were hardware items or standards developed during the ARPANET time frame These include packet switching, routers, and the TCP/IP protocol Packet switching is the method to send data over a computer network Data is divided into small packets and sent individually Packets may travel different routes and as they arrive, they are reassembled into the original data A router is hardware that serves as a gateway between two or more networks TCP/IP is an acronym for transmission control protocol/Internet protocol It is the protocol used today 170 The Pizza Pie Pit is a local chain of pizza restaurants in Dallas The chain has 30 locations throughout the city and its suburbs The management is considering opening a Web site to conduct e-commerce with customers Describe any benefits that might be derived from this move A move to sales on the web site may not increase the geographic area from which the Pizza Pie Pit draws customers This is because the delivery area is not likely to change However, it may experience increased sales due to the convenience of placing pizza orders online It will also be likely to increase the accuracy of orders and reduce the costs of filling pizza orders Pizza Pie Pit may also see a benefit to the marketing available on the web site, for examples, they could put pictures of pizzas on “special” and perhaps increase the sales of promotional items If these benefits occur, the company will experience increased profits 171 Using your favorite search website, enter the term “privacy seal” and search Answer the following questions: What is the purpose of a Web privacy seal? The purpose of a privacy seal is to inform customers that the company web site adheres to high standards of privacy of data When a company displays a privacy seal, they are alerting customers that the company can be trusted to maintain the privacy of customer data Which organizations provide Web privacy seals to web-based companies? Providers include the Better Business Bureau, TRUST-e, CPA WebTrust (AICPA), PrivacyBot.com, ValidatedSite.com, and International Bureau of Certified Internet Merchants What are the advantages to a company that maintains a Web privacy seal? Those parties that provide privacy seals indicated that having a privacy seal leads to increased customer confidence and higher revenue What are the benefits to a consumer of shopping a website that has a privacy seal? The consumer should feel a greater sense of confidence that their data is private There should also be fewer concerns about negative consequences such as a customer’s contact information being sold, or identity theft 30 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 172 Visit the website www.cpawebtrust.org and answer the following questions: What is a WebTrust seal? A WebTrust Seal is placed on a web site of a company that has been examined by a CPA firm to determine that it has appropriate privacy practices and that it adheres to those practices Which organization sanctions the WebTrust seal? The American Institute of Certified Public Accountants (AICPA) What kind of professional can provide a WebTrust seal to a company? Licensed CPAs who have been trained in WebTrust service examinations What must this professional before providing a WebTrust seal? For a firm to become a licensed WebTrust Services provider, the firm must: be in good standing with the AICPA; be a CPA majority owned firm; be part of a recognized quality control system; and, sign a licensing agreement and remit an annual licensing fee to the AICPA 173 Enter the Web site of a popular retail company that sells a large volume of goods or services on the Internet Search for company “Privacy Policies” on that Web site If you not find any privacy policies, continue visiting other company Web sites until you find privacy policies Once you have found a company with privacy policies, describe how the company policies or not meet the privacy practices in the AICPA Trust Principles The solution will depend on which company the student uses in their answer For any company, the student answer should compare the privacy practices against those in the AICPA Trust services Principles privacy practices The following sample answer is based on Target ®, the retail department store, www.target.com, accessed on February 15, 2008 The Target web site has privacy practices at http://sites.target.com/site/en/spot/page.jsp?title=privacy%5Fpolicy and it is divided into three main areas: What information we collect How we may share information How you can limit our sharing or information Target identifies the information it collects such as name, address, e-mail address, phone number, credit card number, and it discloses there may be other information collected This other information might include personal preferences or information about other people such as gift recipients The site indicates there are several parties they may share information with Those uses include: use by Target to offer products or services, Amazon.com when goods are purchased from Amazon on target’s site, carefully selected companies and organizations, and service providers such as printing companies or web host companies 31 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com The site also discloses how a customer can limit use of data provided It appears that when information is collected by Target, customers are giving implicit consent to use information as outlined in the privacy practices Within the privacy policy, there are clickable links to allow a customer to limit use or sharing of information For example, one link allows customers to prevent sharing of information to companies or organizations outside the Target family of companies Thus, the Target site does include some of the privacy practices in the AICPA Trust Services Principles, but not all It does seem to include adequate notice, consent, and disclosure to third parties as described above However, the site describes little, if any, information about management, collection, access, security for privacy, quality, or monitoring and enforcement The site does briefly describe use of the information, such as for offering special promotions There is no information about the retention of data Therefore, the Target site partially describes use and retention 174 Using an Internet search engine, search for the terms “Internet EDI” and “Kate and Ashley.” Explain how Coty applies Internet EDI This solution is based on an article at http://www.computerworld.com.au/index.php/id;1618362747 accessed of February 15, 2008 the article indicates that Coty, the cosmetics manufacturer of Kate and Ashley, is using a blend of old and new technology as it sells the fragrance to WalMart The old part of the technology is EDI It is using standard and traditional data formats for EDI exchange with Wal-Mart The article describes the new technology as the “transport mechanism” Coty is transmitting EDI information to Wal-Mart using the Internet, rather than a Value Added Network (VAN) The technology costs less and is simple to implement It also eliminates the fees paid to VANs The article also describes that the increase in the use of internet EDI is driven by companies such as Wal-Mart Wal-Mart is requiring its vendors to use Internet EDI Meijer is another company that encouraged Coty to use Internet EDI for its information exchanges 32 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 175 Visit the www.xbrl.org Web site Click on the “Latest News” link, and then the “articles” link After reading three or four of the most recent articles about XBRL, briefly describe what those articles say about XBRL The student solution to this problem will vary greatly and depend on when they view the XBRL site and which articles they choose As of the end of 2007, some items about XBRL are: The Shanghai stock exchange in China is asking companies to use XBRL to file reports In Belgium, over 290,000 companies will be using XBRL to file accounts with the National Bank of Belgium The majority of European Banking Supervisors are using XBRL as either a required or optional format In the United States, the SEC is considering mandatory XBRL filing for the Fall of 2008 33 ... ebook, solutions and test bank, visit http://downloadslide.blogspot.com ANSWERS TO TEST BANK - CHAPTER 14 - TRUE/FALSE: T T 17 T T 10 F 18 T F 11 T 19 F F 12 F 20 F T 13 F 21 T F 14 T 22 F T 15 F... slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com TEST BANK – CHAPTER 14 –SHORT ESSAY 159 Much of the e-business and e-commerce conducted by companies uses the Internet... 113 114 115 116 117 118 119 D B A C D D B D A C D B D B A B To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com TEXTBOOK – CHAPTER 14 – END OF CHAPTER