Business Information Systems

Quiz 4 (5%)

Students are required to take 4 Assessment Quizzes in tutorials.

Each quiz is worth 5%, giving a total of 20% for this assessment component.

Two Parts:
Part A: 3 marks for 2 Questions, each one worth 1.5 marks
Part B: 2 marks for 8 MCQs, each one worth 0.25 marks

Part A:
Q1. Explain how the Internet reduces information asymmetry. (1.5 marks)

Information asymmetry exists when one party in a transaction has more information
that is important for the transaction than the other party. That information helps to

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 determine their relative bargaining power.

In digital markets, consumers and suppliers can "see" the prices being charged for
goods, and in that sense digital markets are said to be more "transparent" than
traditional markets.

Examples will vary but should be along the following lines:

Until car trading sites appeared on the web, there was an information asymmetry
between car dealers and customers. Only the dealers knew the manufacturers' prices,
and it was difficult for consumers to shop around for the best price. Dealers' profit
margins depended on this asymmetry of information. Today's consumers have access
to many websites providing competitive pricing information, as more and more people
go online to look for a car. Thus, the Internet (web) has reduced the information
asymmetry surrounding car purchasing.

The Internet has also helped businesses seeking to purchase from other businesses
reduce information asymmetries and locate better prices and terms.

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Q2. List the 4 types of E-commerce in Business and Technology, and briefly
describe one of them with example. (1.5 marks)

1. Business-to-Business (B2B)
2. Business-to-Consumer (B2C)
3. Consumer-to-Consumer (C2C)
4. Consumer-to-Business (C2B).
5. Business-to-Administration (B2A)
6. Consumer-to-Administration (C2A)

1. Business-to-Business (B2B)

Business-to-Business (B2B) e-commerce encompasses all electronic transactions of

goods or services conducted between companies. Producers and traditional
commerce wholesalers typically operate with this type of electronic commerce.

2. Business-to-Consumer (B2C)

The Business-to-Consumer type of e-commerce is distinguished by the

establishment of electronic business relationships between businesses and final
consumers. It corresponds to the retail section of e-commerce, where traditional retail
trade normally operates.

These types of relationships can be easier and more dynamic, but also more
sporadic or discontinued. This type of commerce has developed greatly, due to the
advent of the web, and there are already many virtual stores and malls on the
Internet, which sell all kinds of consumer goods, such as computers, software, books,
shoes, cars, food, financial products, digital publications, etc.

When compared to buying retail in traditional commerce, the consumer usually has
more information available in terms of informative content and there is also a
widespread idea that you’ll be buying cheaper, without jeopardizing an equally
personalized customer service, as well as ensuring quick processing and delivery of
your order.

3. Consumer-to-Consumer (C2C)

Consumer-to-Consumer (C2C) type e-commerce encompasses all electronic

transactions of goods or services conducted between consumers. Generally, these
transactions are conducted through a third party, which provides the online platform
where the transactions are actually carried out.

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 4. Consumer-to-Business (C2B)

In C2B there is a complete reversal of the traditional sense of exchanging goods.

This type of e-commerce is very common in crowdsourcing based projects. A large
number of individuals make their services or products available for purchase for
companies seeking precisely these types of services or products.

Examples of such practices are the sites where designers present several proposals
for a company logo and where only one of them is selected and effectively
purchased. Another platform that is very common in this type of commerce are the
markets that sell royalty-free photographs, images, media and design elements.

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Part B:

1- The device that acts as a connection point between computers and can filter and
forward data to a specified destination is called a(n)
A) hub.
B) switch.
C) router.
D) NIC.

Answer: B - Switch

2- The Internet is based on which three key technologies?

A) TCP/IP, HTML, and HTTP
B) TCP/IP, HTTP, and packet switching
C) client/server computing, packet switching, and the development of communications
standards for linking networks and computers
D) client/server computing, packet switching, and HTTP

Answer: C) client/server computing, packet switching, and the development of

communications standards for linking networks and computers

3- A network that spans a city, and sometimes its major suburbs as well, is called a

A) CAN.
B) MAN.
C) LAN.
D) WAN.
Answer: B) MAN.

4- In a bus network
A) signals are broadcast to the next station.
B) signals are broadcast in both directions to the entire network.
C) multiple hubs are organized in a hierarchy.
D) messages pass from computer to computer in a loop.
Answer: B) signals are broadcast in both directions to the entire network.

5- In a telecommunications network architecture, a protocol is

A) a device that handles the switching of voice and data in a local area network.
B) a standard set of rules and procedures for control of communications in a network.
C) a communications service for microcomputer users.
D) the main computer in a telecommunications network.

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Answer: B) a standard set of rules and procedures for control of communications in a
network.
6- Which of the following is not a characteristic of packet switching?

A) Packets travel independently of each other.

B) Packets are routed through many different paths.
C) Packet switching requires point-to-point circuits.
D) Packets include data for checking transmission errors.
Answer: C) Packet switching requires point-to-point circuits.

7- In a bus network

A) signals are broadcast to the next station.

B) signals are broadcast in both directions to the entire network.
C) multiple hubs are organized in a hierarchy.
D) messages pass from computer to computer in a loop.

Answer: B) signals are broadcast in both directions to the entire network.

8- All network components connect to a single hub in a ________ topology.

A) star
B) bus
C) domain
D) peer-to-peer

Answer: A) star

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