Part A: Essay: Answer each of the following questions in a composition of five to ten
sentences. Each answer is worth 20 points.

What are the advantages and disadvantages of outsourcing the development of an
electronic commerce project?

2. When do Web-based electronic commerce businesses have to collect sales taxes?

Is a company justified in making a significant investment in building a Web presence
simply to respond to competitive pressure?

Part B: Short Answer: Answer each of the following questions in one or two
sentences. Each answer is worth four points.

Why is it important for businesses engaged in electronic commerce to actively protect their
Web sites against security threats?
What are the essential elements of a written security policy for an electronic
commerce business?
Why is the Internet such an effective means of creating a personal relationship between
merchants and buyers?

4. What are some of the factors that account for the success of online auctions?



Describe some of the ways businesses can improve the efficiency of their supply chain
using Internet and Web technologies.

6. Why must Web site designers be sensitive to cultural beliefs and practices?

What is the advantage of the open architecture philosophy that underlies the
technology of the Internet?
Discuss the security requirements needed to effectively protect a company's internal
network against threats from the public Internet?

9. Explain the role of electronic cash in today's electronic commerce environment.

How does a company decide whether to invest in building an electronic commerce
presence on the Web?

Answer is 1000+ words.


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