Management Information System (MIS) Practice Exam

What characterizes the difference between customer and supplier portals and B2B marketplaces?

1. B2B marketplaces cannot be classified as extranets.

2. B2B marketplaces are secured by firewalls.

3. B2B marketplaces only serve vertical markets.

4. B2B marketplaces allow many buyers and many sellers to come together.

The correct answer is: B2B marketplaces allow many buyers and many sellers to come together.

The distinction that characterizes B2B marketplaces is their function as platforms where multiple buyers and sellers can interact and transact. In a B2B marketplace, various vendors can list their products or services, and buyers can compare offerings from different suppliers, fostering a competitive environment. This enables businesses to efficiently source products, negotiate prices, and finalize deals in a centralized location. In contrast, customer portals and supplier portals are typically more focused and serve specific relationships between individual companies and their customers or suppliers. These portals provide tailored access to resources and information for designated parties but do not facilitate the broad exchanges that are characteristic of marketplaces. The other options highlight misconceptions about B2B marketplaces. They are not inherently classified as extranets, as extranets specifically denote a controlled private network that allows access to outsiders, which could apply to portals. Security through firewalls is a common feature of many online platforms but does not specifically differentiate marketplaces from portals. Finally, while B2B marketplaces may focus on certain niche industries, they are not exclusively limited to vertical markets; they can also operate across various sectors and industries.