Management Information System (MIS) Practice Exam

Which of the following forms of e-auction typically takes place on a business-to-business level?

1. Reverse auctions

2. Exchanges

3. Forward auctions

4. Request for quotes

The correct answer is: Exchanges

Exchanges are platforms that facilitate buying and selling between multiple parties, typically on a business-to-business level. In an exchange, companies can list their products or services and potential buyers can access these offers, allowing for a competitive environment where businesses can negotiate prices and terms efficiently. This model fosters a dynamic marketplace where multiple suppliers and buyers interact transparently. Reverse auctions involve sellers bidding against each other to lower their prices, which can occur in both business-to-consumer and business-to-business contexts. Forward auctions are similar to traditional auctions where sellers post items and buyers place bids, and while they can be used in B2B settings, they are more commonly associated with consumer sales. Requests for quotes are a procurement process rather than an auction format, where buyers solicit proposals from sellers and compare them. The focused structure and interaction style of exchanges in the B2B environment are what distinguish them as a typical form of e-auction in that realm, making this the correct choice.