Southwest Airlines Professional Communications Certification Practice Exam

E-commerce refers to which of the following activities?

1. Social media marketing

2. Business or commercial transactions occurring over the Internet

3. Physical retail shopping

4. Networking events for businesses

The correct answer is: Business or commercial transactions occurring over the Internet

E-commerce is best defined as business or commercial transactions occurring over the Internet. This encompasses a broad range of activities, including buying and selling goods and services, online banking, and any other transactions that facilitate financial exchanges through digital platforms. This definition highlights the core nature of e-commerce: transactions that take place online, which distinguishes it from other business activities that may involve direct interaction or physical presence. For example, social media marketing focuses primarily on promoting products or services and does not inherently involve transactional elements like purchasing or payment processing. Similarly, physical retail shopping refers to transactions that occur in brick-and-mortar stores and does not operate within the e-commerce framework. Networking events for businesses further differ as they typically serve to build relationships rather than facilitate direct purchases or sales. Thus, the answer correctly captures the essence of e-commerce by focusing on activities that involve commercial exchanges via the Internet.