MCQs

Question #1 What are the different methods available for maintaining state in a stateless system?
A. Temporary file
B. Cookies
C. Hidden form fields
D. All of the above ✔

Question #2 What is the role of servlets in maintaining state in a stateless system? A. To make
the processing faster
B. To write scripts
C. To act as a web server
D. To act as a database management system ✔

Question #3 What are the different methods available for maintaining state in a stateless system?
A. Temporary file
B. Cookies
C. Hidden form fields
D. All of the above ✔

Question #4 What is the main function of a web server?

A. To process HTML code on the client side

B. To serve up the web page requests of a client on the internet ✔
C. To act as a payment processing system
D. To store files in a centralized manner

Question #5 What is the primary goal of Customer Relationship Management (CRM) software?
A. To integrate all aspects of a business
B. To control the large amounts of data used in conducting business
C. To understand each customer’s needs and customize the product/service ✔
D. To manage the knowledge itself regardless of documentary representation

Question #6 What is an agent in the context of e-commerce?

A. A software program that is capable of autonomous action in its environment ✔

B. A type of e-commerce software used for comparisons and filtering
C. A virus protection software
D. None of the above

Question #7 What are the steps to protect against viruses in e-commerce? A. Install anti-virus
software and avoid downloading plug-ins from the internet
B. Download plug-ins from the vendor’s official website and install a firewall
C. Scan newly obtained disks, programs or files for viruses before use
D. All of the above ✔
Question #8 What type of firewall operates at the network and data link layer of the OSI model?
A. Circuit-level firewall
B. Application gateway firewall
C. Packet filter firewall ✔
D. Hybrid firewall

Question #9 What protocol is used to set up a VPN connection?

A. Point-to-Point Protocol (PPP)

B. Point-to-Point Tunneling Protocol (PPTP) ✔
C. Remote Access Protocol (RAP)
D. Tunneling Protocol (TP)

Question #10 What is the process of scrambling a message with the help of a key called?

A. Encryption ✔
B. Decryption
C. Authentication
D. Verification

Question #11 What is the name of a popular cryptographic system available for general public
use?

A. RSA
B. PGP ✔
C. AES
D. DES

Question #12 What is an electronic signature?

A. A signature in electronic form ✔

B. A physical signature
C. An image of a signature
D. A verbal signature

Question #13 What is a certification authority?

A. A trusted public/private body that attests to the association of a particular individual

with his/her corresponding public key. ✔
B. A top-level CA in the hierarchy of CAs
C. A key server
D. A passport office
Question #14 What is a hash function in cryptography?

A. A mathematical function that encrypts a message

B. A method to reveal the original text
C. A unique number representing a message ✔
D. A way to check the authenticity of a message

Question #15 What is the purpose of using a hash function and message digest in cryptography?
A. To decrypt the original text
B. To check the authenticity of a message ✔
C. To encrypt a message
D. To create a digital signature

Question #16 What is Public Key Infrastructure (PKI)? A. A structured system for key
management in cryptography
B. A digital certificate management system
C. A method to create electronic signatures
D. All of the above ✔

Question #17 What is the key length of DES (Data Encryption Standard)?

A. 56 bits ✔
B. 128 bits
C. 2048 bits
D. 256 bits

Question #18 What is the most popular symmetric key algorithm?

A. DES ✔
B. IDEA
C. RC2
D. RC4

Question #19 What type of attack is Key Search Attacks on Public Key Algorithms?

A. Cryptanalysis
B. System-based attacks
C. Attempt to derive the private key from its corresponding public key ✔
D. Analytical Attacks

Question #20 What is the key feature of the E-cash payment system?

A. Speed of transaction
B. Anonymity of the buyer ✔
C. Security of the transaction
D. Traceability of the transaction

Question #21 Who are the participants in the E-cash payment system?

A. Buyer and merchant only

B. Bank and merchant only
C. Buyer, merchant and bank ✔
D. None of the above

Question #22 What is SSL? A. A protocol developed by Microsoft

B. A protocol developed by Netscape Communications ✔
C. A protocol developed by Internet Explorer
D. A protocol developed by Google

Question #23 What does "https" in a URL indicate?

A. The web server is not SSL-enabled

B. The web server is SSL enabled ✔
C. The web server is using a different protocol
D. The web server is using a different encryption method

Question #24 What does SSL do at the OSI model? A. It operates at the Application layer
B. It operates at the Presentation layer
C. It operates at the Session layer ✔
D. It operates at the TCP/IP layer

Question#25: How is the secret symmetric key established during an SSL handshake? A.
By the client generating it and sending it to the server in plaintext
B. By the server generating it and sending it to the client in plaintext
C. By the client generating it and encrypting it using the public key received from the server ✔
D. By the server generating it and encrypting it using the private key

Question#26: What is the role of the payment gateway in SET transactions?

A. To connect entities on the internet with those not on the internet

B. To provide security of data transmission to and from the merchant ✔
C. To store certificates and card information
D. To store certificates and order information

Question#27: What is the 5th 'P' of marketing in an e-business?

A. Personalized service ✔
B. Place
C. Price
D. Promotion

Question#28: What are the advantages of electronic catalogs over paper catalogs?

A. Easy to create
B. Good search and comparison capabilities ✔
C. Portable
D. Only a limited number of products can be displayed

Question#29: Which e-business model represents the basic form of e-commerce where
buyers and sellers interact directly?

A. Storefront Model ✔
B. Auction Model
C. Drop-Shipping Model
D. Subscription Model

Question#30: Which of the following is the most common type of e-business revenue
model?

A. Digital Content Revenue Model

B. Web Catalogue Revenue Model ✔
C. Advertising-Supported Revenue Model
D. Fee-for-Transaction Revenue Model

Question#31: Which of the following revenue models provides service/information for free
and earns revenue through advertisements? A. Web Catalogue Revenue Model
B. Digital Content Revenue Model
C. Advertising-Supported Revenue Model ✔
D. Fee-for-Service Revenue Model

Question#32: What is e-mail marketing used for?

A. Improving customer service

B. Targeting potential customers
C. Global Marketing
D. All of the above ✔

Question#33: What is the benefit of personalized direct e-mails?

A. Better response rate ✔

B. Global Marketing
C. Better customer service
D. Increased brand recognition

Question#34: What is the purpose of a Meta tag?

A. To locate and rank the website by search engine ✔

B. To improve the ranking of the website by stealing the Meta information of competitors
C. To enter into a strategic union with another company
D. To differentiate the product from competitors

Question#35: What are the three elements of branding?

A. Differentiation, Relevance, and Cost

B. Differentiation, Relevance, and Perceived Value ✔
C. Cost, Relevance, and Perceived Value
D. Differentiation, Cost, and Perceived Value

Question#36: What is the benefit of transferring an existing brand to the web? A. It is much
easier and less expensive
B. It requires more effort and investment
C. It can help in creating an entirely new brand
D. It is not possible to transfer an existing brand to the web

Question#37: What is clustering in data mining?

A. Grouping data objects that are similar to each other and dissimilar to objects in other groups
✔
B. A measure of the percentage of time two items occur together
C. A measure of the percentage of time the relationship between two items holds true
D. None of the above

Question#38: What is the objective of the supply chain?

A. To help each company to meet the needs of the consumer at the end of the supply chain ✔
B. To increase the quality of the product and reduce the production cost
C. To manage the internal activities of a business
D. Supply, transformation, and end-user

Question#39: What is the main purpose of OLAP in data mining?

A. To provide patterns for making predictions

B. To present information stored in databases in a convenient format for decision making ✔
C. To measure the similarity between two items
D. None of the above
Question#40: What are some payment modes accepted for online advertising?

A. Monthly charges
B. Cost per thousand
C. Pay-Per-Performance
D. All of the above ✔

SUBJECTIVE PORTION
Short questions

Question #1: What is the main purpose of a firewall in an organization's network?

Answer: The main purpose of a firewall is to protect an organization's network from

unauthorized access and cyber threats. It does this by filtering incoming and outgoing traffic
based on predefined security rules, blocking malicious activities, and allowing only legitimate
communication.

Question #2: Can a hybrid type of firewall be created by combining circuit-level

capabilities with application gateway services?

Answer: A hybrid firewall can be created by combining circuit-level capabilities with

application gateway services. This type of firewall, known as a "circuit-level gateway" and
"application-level gateway" firewall, offers both basic traffic filtering and more advanced
inspection of application-level protocols, providing enhanced security by addressing various
threats at different layers.

Question #3: Can the original message be retrieved from a message digest?

Answer: No, the original message cannot be retrieved from a message digest. A message digest
is a fixed-size hash value generated by a hash function from the original message. It is designed
to be a one-way process, meaning that it is not possible to reverse-engineer or reconstruct the
original message from the digest.

Question #4: How is a cryptographic key represented in a computer?

Answer: A cryptographic key is represented in a computer as a string of bits or bytes. It is used

in encryption and decryption algorithms to secure data. The key's length and complexity
determine the strength of the encryption, with longer and more complex keys generally providing
better security.
Question #5: How does a merchant get paid for a product or service paid through a credit
card?

Answer: When a customer pays with a credit card, the payment process involves several steps:

1. Authorization: The merchant's payment processor sends the transaction details to the
credit card issuer for approval.
2. Clearing: The credit card issuer approves the transaction and transfers the funds to the
merchant's bank.
3. Settlement: The merchant's bank receives the funds and deposits them into the
merchant's account, minus any processing fees.

Question #6: How does the E-cash model work?

Answer: The E-cash model works as follows:

1. Issuance: Users acquire e-cash from an e-cash provider, which is stored in their digital
wallet.
2. Transactions: Users spend e-cash by transferring it to merchants or other users, similar
to physical cash transactions.
3. Verification: Transactions are verified and recorded by the e-cash system to ensure
authenticity and prevent double-spending.
4. Redemption: Merchants can convert e-cash back into traditional currency through the e-
cash provider.

Long Questions

Question #1: Analyze the different tiers of the client-server architecture and explain each
tier's role in data processing. Discuss the different operating systems used for web servers
and the factors that determine the choice of a web server in an organization. Provide an
example to illustrate your explanation.

Answer:

The client-server architecture consists of three main tiers:

 1. Presentation Tier (Client Tier): This is the user interface where users interact with the
application, typically through a web browser or a mobile app. It sends user requests to the
application server and displays the responses.
2. Application Tier (Server Tier): This tier processes the user's requests, performs
business logic, and interacts with the database. It acts as the intermediary between the
presentation tier and the data tier.
3. Data Tier (Database Tier): This tier manages data storage and retrieval. It involves
databases and other data management systems where the application's data is stored.

Operating Systems for Web Servers:

 Windows Server: Known for compatibility with Microsoft technologies and easy
integration with enterprise solutions.
 Linux (e.g., Ubuntu, CentOS): Popular for its stability, security, and cost-effectiveness.
Many web servers use Linux due to its open-source nature and flexibility.

Factors Determining the Choice of a Web Server:

 Cost: Linux-based servers are often cheaper compared to Windows-based servers.

 Compatibility: The choice depends on the software stack and applications being used.
 Security: Linux is often preferred for its robust security features.
 Performance: The server’s ability to handle high traffic efficiently.

Example: A company might choose a Linux-based server for its web applications because it’s
cost-effective, secure, and performs well with high traffic, using Apache or Nginx as the web
server software.

Question #2: What is the process of registration for a buyer and a merchant in the Virtual
PIN system?

Answer:

Registration for a Buyer:

1. Sign-Up: The buyer fills out a registration form providing personal information such as
name, address, and contact details.
2. Verification: The system verifies the information provided and creates a unique Virtual
PIN for the buyer.
3. Activation: The buyer receives the Virtual PIN via email or SMS and activates their
account by following the provided instructions.

Registration for a Merchant:

 1. Sign-Up: The merchant submits business details including company name, contact
information, and bank details.
2. Verification: The system or a verification team reviews the provided information to
ensure it meets the necessary requirements.
3. Account Setup: Upon successful verification, the merchant is issued a Virtual PIN and
access to the merchant portal to manage transactions and settings.

Question #3: Explain the minting process of an e-cash coin in the E-cash payment system.

Answer:

The minting process of an e-cash coin involves the following steps:

1. Creation: The system generates a new e-cash coin, which includes a unique digital
signature and a value.
2. Issuance: The coin is issued to the user’s account after successful authentication and
verification.
3. Storage: The e-cash coin is stored in the user's digital wallet or account, where it can be
used for transactions.

Example: When a user purchases e-cash, the system mints new coins and credits them to the
user's account, allowing them to spend or transfer the e-cash.

Question #4: Explain the concept of market segmentation and its importance in Internet
Marketing.

Answer:

Market Segmentation is the process of dividing a broad target market into smaller, more
defined groups of consumers with similar needs or characteristics.

Importance in Internet Marketing:

1. Targeted Advertising: It allows businesses to create tailored ads for specific segments,
increasing the effectiveness of their campaigns.
2. Personalization: Helps in delivering personalized content and offers to different groups,
enhancing user engagement and satisfaction.
3. Efficient Resource Allocation: Businesses can focus their marketing efforts on segments
with the highest potential, optimizing their budget and resources.
Example: An online clothing store might segment its market into categories like "women's
fashion," "men's fashion," and "children's wear" to tailor its marketing strategies and product
offerings for each group.