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In a hierarchical topology, network nodes communicate with each other via a central host computer.. Also in this topology, the central computer manages and controls data communications a

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Chapter 12—Electronic Commerce Systems

TRUE/FALSE

1 Because of network protocols, users of networks built by different manufacturers are able to

communicate and share data

ANS: T

2 Electronic commerce refers only to direct consumer marketing on the Internet

ANS: F

3 Business to consumer is the largest segment of Internet commerce

ANS: F

4 The phrase “.com” has become an Internet buzz word It refers to a top-level domain name for

communications organizations

ANS: F

5 The standard format for an e-mail address is DOMAIN NAME@USER NAME

ANS: F

6 The network paradox is that networks exist to provide user access to shared resources while one of its most important objectives is to control access

ANS: T

7 Business risk is the possibility of loss or injury that can reduce or eliminate an organization’s ability to achieve its objectives

ANS: T

8 IP spoofing is a form of masquerading to gain unauthorized access to a Web server

ANS: T

9 The rules that make it possible for users of networks to communicate are called protocols

ANS: T

10 A factor that contributes to computer crime is the reluctance of many organizations to prosecute criminals for fear of negative publicity

ANS: T

11 Cookies are files created by user computers and stored on Web servers

ANS: F

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12 Sniffing is the unauthorized transmitting of information across an Intranet.

ANS: F

APPENDIX QUESTION

13 The client-server model can only be applied to ring and star topologies

ANS: F

14 The most popular topology for local area networks is the bus topology

ANS: T

15 A network topology is the physical arrangement of the components of the network

ANS: T

16 A bus topology is less costly to install than a ring topology

ANS: T

17 In a hierarchical topology, network nodes communicate with each other via a central host computer ANS: T

18 Polling is one technique used to control data collisions

ANS: T

19 The most frequent use of EDI is in making vendor payments

ANS: F

20 EDI is the inter-company exchange of computer processible business information in standard format ANS: T

MULTIPLE CHOICE

APPENDIX QUESTION

1 The primary difference between a LAN and a WAN is

a the geographical area covered by the network

b the transmission technology used

c the type of workstation used

d the size of the company

ANS: A

2 To physically connect a workstation to a LAN requires a

a file server

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b network interface card

c multiplexer

d bridge

ANS: B

3 One advantage of network technology is

a bridges and gateways connect one workstation with another workstation

b the network interface card permits different networks to share data

c file servers permit software and data to be shared with other network users

d a universal topology facilitates the transfer of data among networks

ANS: C

4 Which topology has a large central computer with direct connections to a periphery of smaller computers? Also in this topology, the central computer manages and controls data communications among the network nodes

a star topology

b bus topology

c ring topology

d client/server topology

ANS: A

5 In a star topology, when the central site fails

a individual workstations can communicate with each other

b individual workstations can function locally but cannot communicate with other

workstations

c individual workstations cannot function locally and cannot communicate with other

workstations

d the functions of the central site are taken over by a designated workstation

ANS: B

6 Which of the following statements is correct? The client-server model

a is best suited to the token-ring topology because the random-access method used by this model detects data collisions

b distributes both data and processing tasks to the server’s node

c is most effective used with a bus topology

d is more efficient than the bus or ring topologies

ANS: B

7 What do you call a system of computers that connects the internal users of an organization that is distributed over a wide geographic area?

a LAN

b decentralized network

c multidrop network

d Intranet

ANS: D

8 Sniffer software is

a software used by malicious Web sites to sniff data from cookies stored on the user’s hard drive

b used by network administrators to analyze network traffic

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c used by bus topology Intranets to sniff for a carrier before transmitting a message to avoid data collisions

d illegal programs downloaded from the Net to sniff passwords from the encrypted data of Internet customers

ANS: B

9 In a ring topology

a all nodes are of equal status

b nodes manage private programs and databases locally

c shared resources are managed by a file server which is a node on the ring

d all of the above

ANS: D

10 The client/server technology

a increases the amount of data that is transmitted between the central file and the network node

b eliminates the need for nodes to communicate with each other

c reduces the number of records that must be locked by having the file server perform record searches

d functions only with a ring and bus topology

ANS: C

11 A star topology is appropriate

a for a wide area network with a mainframe for a central computer

b for centralized databases only

c for environments where network nodes routinely communicate with each other

d when the central database does not have to be concurrent with the nodes

ANS: A

12 In a ring topology

a the network consists of a central computer which manages all communications between nodes

b has a host computer connected to several levels of subordinate computers

c all nodes are of equal status; responsibility for managing communications is distributed among the nodes

d information processing units rarely communicate with each other

ANS: C

13 Which method does not manage or control data collisions that might occur on a network?

a multiplexing

b polling

c carrier sensing

d token passing

ANS: A

14 Network protocols fulfill all of the following objectives except

a facilitate physical connection between network devices

b provide a basis for error checking and measuring network performance

c promote compatibility among network devices

d result in inflexible standards

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ANS: D

15 All of the following are true about the Open System Interface (OSI) protocol except

a within one node different layers communicate with other layers at that node

b one protocol is developed and applied to all the OSI layers

c specific layers are dedicated to hardware tasks and other layers are dedicated to software tasks

d layers at each node communicate logically with their counterpart layers across nodes ANS: B

16 Which of the following statements is correct? TCP/IP

a is the basic protocol that permits communication between Internet sites

b controls Web browsers that access the WWW

c is the file format used to produce Web pages

d is a low-level encryption scheme used to secure transmissions in HTTP format

ANS: A

17 XBRL

a is the basic protocol that permits communication between Internet sites

b controls Web browsers that access the Web

c is the document format used to produce Web pages

d was designed to provide the financial community with a standardized method for preparing

e is a low-level encryption scheme used to secure transmissions in higher-level (HTTP) format

ANS: D

18 FTP

a is the document format used to produce Web pages

b controls Web browsers that access the Web

c is used to connect to Usenet groups on the Internet

d is used to transfer text files, programs, spreadsheets, and databases across the Internet

e is a low-level encryption scheme used to secure transmissions in higher-level () format ANS: D

19 HTML

a is the document format used to produce Web pages

b controls Web browsers that access the Web

c is used to connect to Usenet groups on the Internet

d is used to transfer text files, programs, spreadsheets, and databases across the Internet

e is a low-level encryption scheme used to secure transmissions in higher-level () format ANS: A

20 Which one of the following statements is correct?

a Cookies always contain encrypted data

b Cookies are text files and never contain encrypted data

c Cookies contain the URLs of sites visited by the user

d Web browsers cannot function without cookies

ANS: C

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21 A message that is made to look as though it is coming from a trusted source but is not is called

a a denial of service attack

b digital signature forging

c Internet protocol spoofing

d URL masquerading

ANS: C

22 A digital signature is

a the encrypted mathematical value of the message sender’s name

b derived from the digest of a document that has been encrypted with the sender’s private key

c the computed digest of the sender’s digital certificate

d allows digital messages to be sent over analog telephone lines

ANS: B

23 HTTP

a is the document format used to produce Web pages

b controls Web browsers that access the Web

c is used to connect to Usenet groups on the Internet

d is used to transfer text files, programs, spreadsheets, and databases across the Internet

e is a low-level encryption scheme used to secure transmissions in higher-level () format ANS: B

24 Which of the following statements is correct?

a Packet switching combines the messages of multiple users into a “packet” for

transmission At the receiving end, the packet is disassembled into the individual messages and distributed to the intended users

b The decision to partition a database assumes that no identifiable primary user exists in the organization

c Message switching is used to establish temporary connections between network devices for the duration of a communication session

d A deadlock is a temporary phenomenon that disrupts transaction processing It will resolve itself when the primary computer completes processing its transaction and releases the data needed by other users

ANS: C

25 NNTP

a is the document format used to produce Web pages

b controls Web browsers that access the Web

c is used to connect to Usenet groups on the Internet

d is used to transfer text files, programs, spreadsheets, and databases across the Internet

e is a low-level encryption scheme used to secure transmissions in higher-level (HTTP) format

ANS: C

SHORT ANSWER

1 What is packet switching?

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ANS:

Packet switching is a transmission whereby messages are divided into small packets Individual packets of the same message may take different routes to their destinations Each packet contains address and sequencing codes so they can be reassembled into the original complete message at the receiving end

2 What is an extranet?

ANS:

An extranet is a variant on Internet technology This is a password-controlled network for private users rather than the general public Extranets are used to provide access between trading partner internal databases

3 What is a URL?

ANS:

A URL is the address that defines the path to a facility or file on the Web URLs are typed into the browser to access Web site homepages and individual Web pages, and can be embedded in Web pages

to provide hypertext links to other pages

4 What is an IP address?

ANS:

Every computer node and host attached to the Internet must have a unique Internet protocol (IP) address For a message to be sent, the IP addresses of both the sending and the recipient nodes must be provided

5 What is spoofing?

ANS:

Spoofing is a form of masquerading to gain unauthorized access to a Web server to perpetrate an

unlawful act without revealing ones identity

6 Name the three types of addresses used on the Internet

ANS:

The three types of addresses used on the Internet are: e-mail addresses of individuals, Web site (URL) addresses of pages, and IP addresses of individual computers attached to the Internet

7 What is XML?

ANS:

XML is a meta-language for describing markup languages The term extensible means, that any markup language can be created using XML This includes the creation of markup languages capable

of storing data in relational form, where tags (formatting commands) are mapped to data values

8 What is XBRL?

ANS:

XBRL (Extensible Business Reporting Language) is an XML-based language that was designed to

provide the financial community with a standardized method for preparing, publishing and

automatically exchanging financial information, including financial statements of publicly held

companies

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9 What is XBRL Taxonomy?

ANS:

XBRL taxonomies are classification schemes that are compliant with the XBRL specifications, to accomplish a specific information exchange or reporting objectives

10 Explain the parts of an e-mail address and give an example (your own?)

ANS:

The two parts of an e-mail address are the user name and the domain name For example,

hsavage@cc.ysu.edu is the address of Helen Savage at the computer center site at Youngstown State University

11 Explain a denial of service attack

ANS:

A denial of service attack is an assault on a Web server to prevent it from serving its users The normal

connecting on the Internet involves a three-way handshake: (1) from the originating server to the receiving server, (2) from the receiving server to the originating, and (3) from the originating server to the receiving In a denial of service attack, step three is omitted by the attacking entity, and this locks

up the receiving server and prevents either completing the connection or using their ports to respond to other inquiries This is somewhat like a calling party on a phone being able to prevent the called party from breaking the connection, hence making the phone unusable

12 What are cookies and why are they used?

ANS:

Cookies are files containing user information that are created by the Web server of the site being

visited and are then stored on the visitor’s own computer hard drive They can contain the addresses of sites visited by the user If the site is revisited, the browser sends the cookie(s) to the Web server This was originally intended to enhance efficiency Many questions now exist about the use of cookies, especially with regard to user privacy and the security of user information such as passwords

13 List at least five top-level domain names used in the United States

ANS:

Among the top-level domain names used in the U.S are:

.com–a commercial entity

.net–a network provider

.org–an non-profit organization

.edu–an educational or research entity

.gov–a government entity

APPENDIX QUESTION

14 When are networks connected with a bridge and with a gateway?

ANS:

Bridges connect LANs of the same type; gateways connect LANs of different manufacturers and different types

15 Describe an advantage to the client/server topology

ANS:

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Client/server technology reduces the number of records that have to be locked and reduces the amount

of data that is transmitted over the network

16 Describe one primary advantage of polling as a network control method

ANS:

Polling is noncontentious so data collisions are prevented

Firms can prioritize data communications by polling important nodes more frequently than less important nodes

17 Describe one disadvantage to carrier sensing as a network control method

ANS:

Collisions can occur when two messages are sent simultaneously

18 Why is network control needed? What tasks are performed?

ANS:

Network control establishes a communication session between sender and receiver, manages the flow

of data across the network, detects and resolves data collisions, and detects errors in data caused by line failure or signal degeneration

19 Define WAN, LAN, and VAN

ANS:

A WAN is a wide area network, a LAN is a local area network, and a VAN is a value-added network.

20 What are the five basic network architectures?

ANS:

The five basic network architectures are: star, hierarchical, ring, bus, and client/server

ESSAY

APPENDIX QUESTION

1 Contrast a LAN and a WAN Typically, who owns and maintains a WAN?

ANS:

A LAN is a local area network covering a limited geographic area (a room, a building, several

buildings within a restricted geographic distance) Information processing units connected to a LAN are usually microcomputer-based workstations Typically, LANs are privately owned and controlled

2 Describe the basic differences between the star, ring, and bus topologies

ANS:

The star topology is a configuration of IPUs with a large central computer (the host) at the hub (or center) that has connections to a number of smaller computers Communication between nodes is managed from the host

The ring topology connects many computers of equal status There is no host Management of

communication is distributed among the nodes

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In the bus topology, all nodes are connected to a common cable, the bus Communication and file transfer are controlled centrally by one or more server

3 What security questions must be considered with regard to Internet commerce?

ANS:

Security questions that must be answered to safeguard Internet commerce relate to:

private or confidential financial data stored on a host or server that could be accessed by unauthorized individuals,

interception of private information sent between sites, such as credit card numbers, and

the risk of destruction of data and programs by virus attacks and other malice

4 What is the World Wide Web?

ANS:

The World Wide Web is an Internet facility that links user sites locally and around the world It was originally developed to share scientific information over the Internet Although the Web is the part of the Internet that is most familiar to average users, it is just a part Other Internet tools include file transfer using FTP, remote connection to another computer using Telnet, and access to the menuing system Gopher Its popularity is in part due to the ease of access that is provided by Internet browser software The basic Web document is written in hypertext markup language that contains numerous links to other pages, thus permitting easy movement

5 Discuss the three levels of Internet business models

ANS:

How much benefit an organization gains from the Internet depends on how much of its function is used Three levels of uses can be made:

a At the simplest level, the information level, the organization uses the Internet to display

information about the company, its products, services, and business policies In other words, it provides information only

b At the transaction level, the organization uses the Internet to accept orders from customers and/or

to place them with their suppliers In other words, transactions occur

c At the highest level, the distribution level, the organization uses the Internet to both sell and

deliver digital products–online news, software, music, video, etc

6 Define risk in an electronic commerce setting

ANS:

The typical definition of business risk is the possibility of loss or injury that can reduce or eliminate an

organization’s ability to achieve its objectives In the area of e-commerce, risk relates to the loss, theft,

or destruction of data and/or the use or generation of data or computer programs that financially or physically harm an organization

7 Discuss the four areas of concern as they are related to e-commerce: data security, business policy, privacy, and business process integrity

ANS:

Data security relates to the level of protection over stored and transmitted data–the security of internal

databases and protection from unauthorized access by individuals inside and outside the organizations

Business policies relate to the need of consumers and trading partners to know a company’s policies

regarding billing, payment, merchandise returns, shipping, products, and sales tax collection

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