Management Information System (MIS) Practice Exam

What type of electronic commerce involves transactions between businesses?

1. Business-to-consumer

2. Peer-to-peer

3. Business-to-business

4. Consumer-to-consumer

The correct answer is: Business-to-business

The type of electronic commerce that involves transactions between businesses is known as business-to-business (B2B) commerce. This form of e-commerce refers specifically to transactions where one business sells products or services to another business. This can include wholesale distributors selling to retailers, service providers offering solutions to corporate clients, and manufacturers supplying goods to other businesses. B2B transactions often involve larger quantities, longer sales cycles, and more complex negotiations compared to transactions involving individual consumers. These transactions typically leverage electronic systems for the ease of communication, transaction processing, and the management of business relationships. In contrast, business-to-consumer (B2C) commerce focuses on transactions between businesses and individual consumers, while peer-to-peer (P2P) refers to transactions between individual people, often facilitated by online platforms. Consumer-to-consumer (C2C) e-commerce involves transactions between private individuals, typically selling goods or services to each other through online marketplaces.