Chap 10

Which of the following is most closely related to one of the benefits of e-business discussed in the text?

• A. Internal controls

  
  

• B. Company finances

  
  

• C. Selling to a broader range of customers

  
  

• D. All of these are related to benefits of e-business.

  
  

The central feature of e-business is:

• A. Transacting business over a computer network.

• B. Using XBRL for required SEC filings.

  
  

• C. Implementing general ledger software.

  
  

• D. Ensuring that the company is no lower than Level 3 on the capability maturity model.

  
  

Costs associated with e-business include:

• Financial costs associated with setting up networks

  
  
  

• Need to develop different, better internal control systems.

  
  

• Potential for customer distrust

  
  

• All of these.

  
  

E-business offers many potential benefits for a company's marketing efforts. Those benefits include:

• Selling to a more diverse group of customers.

  
  

• Allowing a business to focus its marketing efforts.

  
  

• Both selling to a more diverse group of customers and allowing a business to focus its marketing efforts.

  
  

• Neither selling to a more diverse group of customers nor allowing a business to focus its marketing efforts.

  
  

WebTrust and SysTrust are most closely related to which of the following?

• Elements of Brown's risk taxonomy

  
  

• Flowcharting

  
  

• Expectancy theory

  
  

• All of these

  
  

WebTrust and SysTrust can be incorporated into an organization's:

• Internal control plan

  
  

• Enterprise risk management plan

  
  

• Both internal control plan and enterprise risk management plan

  
  

• Neither internal control plan nor enterprise risk management plan

  
  

TNS Corporation had been doing business via traditional brick-and-mortar methods for many years, then decided to expand into e-business. Based on the benefits and costs of e-business listed in the text, which of the following numbers is likely to increase?

• Sales

  
  

• Profits

  
  

• Prepaid assets

  
  

• Retained earnings

  
  

The CEO and CFO of TNS Corporation wanted to expand into e-business, but the company's board of directors was unwilling to approve their plan. Which of the following theories will best help the CEO and CFO persuade the board of directors to support their idea?

• Capability maturity model

  
  

• Systems development life cycle

  
  

• Expectancy theory

  
  

• COSO enterprise risk management framework

  
  

Which of the following statements is true?

• A bank is unlikely to benefit from e-business

  
  

• In a university, the costs of e-business usually exceed the benefits.

  
  

• Both a bank is unlikely to benefit from e-business and in a university, the costs of ebusiness usually exceed the benefits are true.

  
  

• Neither a bank is unlikely to benefit from e-business nor in a university, the costs of ebusiness usually exceed the benefits is true.

  
  

When the Internal Revenue Service encourages individual taxpayers to submit forms electronically, it is engaging in which form of e-business?

• B2C

  
  

• G2C

• C2C

• B2B