Unit – V:
Emerging Modes of Business
Very Short answer types Questions:
1.
Name the popular name of Debit and Credit Card.
Ans. Plastic Money
2.
Which electronic currency exists in cyberspace?
Ans. Digital Cash
3.
Give the full name of BPO?
Ans. Business process units
4
. Which is the common mode of payment under E -Commerce? 2018
Ans. Credit Card,
Debit Card, UPI Wallet, Net Banking
5.
Name the service in which a firm gets its tasks done by another firm.?
Ans. BPO
6.
What does ‘e’ stand for in e-commerce?
Ans. electronic
Short/ Long answer type questions:
Q.1.
What is E-Business? Mention its scope.
Ans: E –
Business: E – Business refers to all business transactions and functions
conducted electronically.
Scope of e –
Business: The scope of e
– Business is quite vast, it includes the following:
a)
B2B Commerce:
Refers to electronically conducted business transactions between business to
business.
b)
B2C Commerce:
Refers to electronically conducted Business transactions to Customers.
c)
Intra-B Commerce:
Refers to electronically conducted business transactions within a given
business firm.
d)
C2C Commerce:
Refers to electronically conducted Business transactions between Consumer to
Consumer.
Q.2.
Mention the merits and limitations of E-Business. 2016, 2019
Ans: Benefits of
E – Business 2018
a)
Easy to form:
It is very easy to start e – business because lots of procedures required for
traditional business are not required for e – Business
b)
Requires Less Investment: Both big and small business gets the benefits of
internet equally. Thus even one start of small business with less investment
can derive the benefit of e – Business.
c)
Convenience:
Internet offers the convenience of 24 hours X 7 days a week with a less
investment – i.e. one can access anything, anywhere, any time.
d)
Speed:
Any business transaction can be made simply at the click of the mouse button.
e)
Global reach/access: In e – Business both businessmen and
consumers have no national boundaries because internet is without such
boundaries.
f)
Movement towards paperless society: Cutting thousands and thousands of trees to
make paper adversely affects the environment but internet has considerably
reduced the dependence on paper.
Limitations of e – Business 2015,
2019
a)
Low Personal Touch: Interpersonal touch between businessmen and
the consumer is very important. e – Business may be high tech but the lacking
interpersonal interaction is truly one of its shortcomings.
b)
Delayed Delivery: Sometimes order may be placed at once
through internet but delivery may be delayed, which may disturb the customers.
c)
Need for technological capability and
competence of parties: If any one
party – either buyer or seller is not familiar with digital technology, e –
Business becomes difficult.
d)
Risk of Non-Traceability of parties: Cyber personalities participate in e –
Business, when any one is in remote area – Traceability may be one the biggest
problem.
e)
People’s Resistance: In general, people resist changes and halt
will be more if any organization prefers to go fully online.
Q.3.
Mention the
resources required for successful implementation of e-business.
Ans: Resources required for e-business:
a)
Adequate computer
systems
b)
Internet
connection and telecommunication system
c)
A website
d)
Technically
qualified workforce
e)
Fool-proof system
of receiving payments
Q.4.
What is the
meaning of e-commerce? Distinguish between e-business and e-commerce.
Ans: E - commerce is an electronic system of
dealing in all-commercial activities and business transactions through
Internet. E-commerce can take place within or among three groups of economic
factors namely business, government and individuals.
Difference
between e-business and e-commerce:
E – Business is
more inclusive term than e – Commerce while e – Commerce refers to a firm’s
interactions with its customers and its supplier over the internet. e – Business, apart from e – Commerce
includes all other electronically conducted business activities such as
inventory management, production, product development, accounting, finance,
etc.,
Q.5.
What are essential
elements for security and safety of e-business
transactions?
Ans: There are five essential elements for
security and safety of transactions carried out through e-business:
a)
Authenticity: It implies that each party in a transaction
must ascertain with certainly the identity of the other party
b)
Integrity: It implies that there must be honesty in
dealings.
c)
Confidentiality: It implies that there must be privacy of the
transaction
d)
Non-
reputability of origin:
It implies that the parties to a transaction cannot subsequently deny their
production
e)
Non-reputability
of receipt: It implies that
the seller subsequently cannot deny the payment received.
Q.6.
List the
opportunities offered by E-Business.
Ans: E-business offers tremendous
opportunities to following four parts of the business:
a)
Opportunity
to producers: E-Business
enables producers to select the best suppliers regardless of their geographical
location. The producers can acquire quality raw materials and latest production
technology from new suppliers.
b)
Opportunity
to wholesaler / distributes:
Wholesaler by taking the advantage of e-business can work more closely with
their suppliers and they can be more responsive to the needs and expectations
of their retailers and customers
c)
Opportunity
to retailer: A retailer can
save his existence by linking his business with the on – line Distribution.
There fore the retailers who have the capacity to link their business with the
online, E-business is a good opportunity
d)
Opportunity
to customer: Customers can
purchase required quality products and services at competitive prices from
suppliers anywhere in the world.
Q.7.
What do you
understand by outsourcing? What is the Need for outsourcing of Services? 2015
Ans: Outsourcing of services means delegation
of one or more business processes to an outside agency that would normally have
been performed within the organization on a regular basis.
Need for
Outsourcing of services:
a)
To obtain
specialized Services
b)
To Get Benefits
of latest developments
c)
To avoid fixed
investment
d)
To run business
efficiently
Q.8.
Mention the
nature of outsourcing of services.
Ans: Nature of outsourcing of services:
a)
Availability of
specialized service agencies
b)
Quality service
c)
Cheaper service
d)
Increase in
efficiency of the users
Q.9.
Name the
types of services which are outsourced.
Ans: Types of outsourcing services:
a)
Financial
Services
b)
Advertising
services
c)
Courier Services
d)
Customer Support
Services
Q.10.
Mention the major drawbacks of outsourcing.
Ans:
Problems of Outsourcing:
1.
Confidentiality: Outsourcing depends on sharing a lot of vital information and
knowledge. If the outsourcing partner passes it on to competitors it can harm
the business to a greater extent.
2. Sweat
Shopping: As the firms that outsource seek to lower their costs, they try to
get the maximum from the low-cost manpower of the host countries, this may
result in sweat shopping.
3. Ethical
Concerns: In the name of cost cutting, unlawful activities such as child
labour, wage discrimination maybe encouraged in other countries.
4. Resistance in
home countries: Contracting out ultimately result in contracting out of
employments; this may create resistance in the home countries.
Q.11.
Define the following in one line.
Ans: E –
Business: E – Business
refers to the process of performing Business activities electronically through
the means of internet.
E – Trading: e – Trading involves securities trading, i.e.
online buying & selling of shares and other financial instruments.
Digital Cash: Digital Cash refers to electronic cash instead
of actual money which exists only in cyberspace (also known as cyber currency)
E – Commerce: e – Commerce refers to a firm’s interactions
with its customers and suppliers over internet.
Business Process
Outsourcing (BPO): The process of
contracting out non-core business activities to 3rd parties in order to reduce
costs and time involved.
Online Trading: The act of selling and buying anything online.
Q.12.
What are the various steps involved in online purchases?
Ans: Steps involved in online purchase
1. Registration: Register yourself with online
vendor by filling up registration form.
2. Placing an Order: You can pick and drop
the items of your choice in the online ‘shopping cart’.
3. Payment Options:
a. Cash on
Delivery(COD) b. Cheque
c. Net-Banking Transfer d.
Credit/Debit Cards e. Digital Cash
Q.13.
What are the various steps involved in online transactions?
Ans: Online
Transactions involves three
stages:-
1. Pre-Purchase/
Sale Stage – Including advertising
and information seeking.
2. Purchase /
Sale Stage – Comprising of
price negotiation, closing deal & payment.
3. Delivery Stage
– Involves physical delivery of goods.
The first two
steps – involves only interaction and thus can be effectively done online.
Q.14.
Distinguish between Traditional business and e-business.
Ans: Difference
between traditional and e-business are mentioned below:
|
Basis of distinction |
Traditional Business |
e – Business |
|
Ease of
formation |
Difficult |
Simple |
|
Physical
Presence |
Required |
Not Required |
|
Location
Requirements |
Need to be near
market or Raw Materials |
None |
|
Cost of Setting
Up |
High |
Low |
|
Operation Cost |
High |
Low |
|
Nature of
Contact with suppliers & Customers |
Indirect –
Through Intermediaries |
Direct |