Worksheet Solutions: Emerging Modes of Business | Business Studies (BST) Class 11 - Commerce PDF Download

Multiple Choice Questions (MCQs)

Q1: What does E-Business refer to??
A) Business transactions conducted traditionally
B) All business transactions conducted electronically
C) Only online shopping
D) None of the above
Ans: B) All business transactions are conducted electronically

E-Business (Electronic Business) encompasses all business activities and transactions conducted electronically, including online sales (e-commerce), supply chain management, customer relationship management (CRM), and internal processes like electronic communication and data management. While "online shopping" (C) is part of e-business, it is not the entirety of it. Option A refers to traditional methods, which are unrelated to e-business. Thus, B is the correct answer.

Q2: What does SSL stand for?
A) Secure Sockets Layer
B) Simple Security Layer
C) Standard Security Layer
D) None of the above
Ans: A) Secure Sockets Layer

SSL stands for Secure Sockets Layer, a security protocol that establishes encrypted links between a web server and a browser to ensure data transmitted (e.g., login details, payment information) remains private. While TLS (Transport Layer Security) has largely replaced SSL in modern use, the term "SSL" remains widely recognized. Options B and C are incorrect, as they misrepresent the acronym’s meaning. Thus, A is correct.

Q3: Which of the following is NOT a benefit of e-Business?
A) Global reach/access
B) High personal touch
C) Convenience
D) Speed
Ans: B) High personal touch

E-Business provides global reach (A), convenience (C), and speed (D) as key advantages. However, "high personal touch" (B) is typically associated with traditional in-person interactions, where direct human engagement (e.g., face-to-face customer service, physical store experiences) is prioritized. While e-Business can offer personalization (e.g., tailored recommendations), it generally lacks the depth of interpersonal connection found in offline settings. Automation and digital interfaces often reduce direct human interaction, making B the correct choice.

Q4: What does B2B Commerce refer to?
A) Business to Business
B) Business to Customer
C) Customer to Customer
D) None of the above
Ans: A) Business to Business

B2B Commerce stands for Business to Business, referring to commercial transactions or interactions between two businesses. Examples include a manufacturer supplying raw materials to another company or a software provider offering enterprise solutions to corporations. In contrast:

• B2C (Business to Customer) involves businesses selling directly to consumers (e.g., Amazon).
• C2C (Customer to Customer) involves transactions between individuals (e.g., eBay).

Since B2B explicitly denotes inter-business activities, A is correct.

Q5: What is the primary focus of Business Process Outsourcing (BPO)?
A) To increase the workforce
B) To reduce costs and time
C) To improve product quality
D) None of the above
Ans: B) To reduce costs and time

The primary focus of BPO (Business Process Outsourcing) is to reduce operational costs and save time by delegating non-core business functions (e.g., customer support, payroll, IT services) to third-party providers, often in regions with lower labor costs. While BPO can indirectly lead to workforce expansion (A) or improved efficiency (C), its core objective is cost and time optimization. Thus, B is the correct answer.

Fill in the Blanks

Q1: E-Business includes all business activities conducted __________.
Ans: electronically

Q2: __________ is the technology used to secure online transactions.
Ans: Secure Sockets Layer (SSL)

Q3: Digital Cash exists only in __________.
Ans: cyberspace

Q4: E-Trading involves the online buying and selling of __________.
Ans: shares

Q5: __________ refers to the practice of outsourcing to reduce costs using low-cost manpower.
Ans: Sweat Shopping

Short Answer Questions

Q1: What is e-Business?
Ans: E-Business means doing business using the Internet. It includes all online activities like buying and selling, managing stock, and communicating with customers and suppliers. It helps businesses run faster and reach more people.

Q2: What does VIRUS stand for?
Ans: VIRUS stands for Vital Information & Resources Under Siege. It is a type of harmful software that can invade computers, causing problems by damaging data or making systems slow.

Q3: What is Digital Cash?
Ans: Digital Cash is money that exists only on the Internet. It is like real money but is used online to buy things. You cannot hold it in your hand, but you can use it to pay for items on websites.

Q4: What does e-Procurement mean?
Ans: E-Procurement is when businesses buy products or services online. They use the Internet to find suppliers, place orders, and manage purchases, making the buying process faster and easier.

Q5: What are Call Centres?
Ans: Call Centres are places where people help customers over the phone. Companies use call centres to provide support and answer questions all day and night, making it easier for customers to get help when they need it.

Long Answer Questions

Q1: Briefly explain the benefits of e-Business.
Ans: The benefits of e-Business are numerous and can greatly enhance the efficiency and effectiveness of business operations. Here are five key benefits:

• Easy to Form: E-Businesses can be established more easily compared to traditional businesses. There are fewer regulatory requirements, and many processes can be handled digitally, reducing the time and effort needed to get started.
• Requires Less Investment: Starting an e-Business typically demands less capital than a traditional business. This makes it accessible for small entrepreneurs who might not have significant financial resources, allowing them to tap into the market.
• Convenience: E-Business operates 24/7, meaning customers can shop anytime and anywhere. This flexibility enhances customer satisfaction as it accommodates different schedules and lifestyles.
• Speed: Transactions in e-Business can be completed quickly, often with just a few clicks. Processes like electronic payments and digital communications eliminate delays experienced in traditional commerce.
• Global Reach: E-Business eliminates geographical barriers, allowing businesses to reach customers worldwide. This global access expands market opportunities and can lead to increased sales and brand recognition.

Q2: Briefly explain any five limitations of e-Business.
Ans: While e-Business offers many advantages, it also has several limitations that can impact its effectiveness. Here are five notable limitations:

• Low Personal Touch: One significant drawback of e-Business is the reduced personal interaction between businesses and consumers. This lack of face-to-face communication can affect customer relationships and trust.
• Delayed Delivery: Online orders can sometimes experience delays in delivery, which can frustrate customers. Timely delivery is crucial for customer satisfaction, and any discrepancies can lead to a negative experience.
• Technological Dependence: E-Business requires a certain level of technological proficiency. If either the buyer or seller is not comfortable with digital tools, the process can become complicated, leading to potential losses.
• Cybersecurity Risks: The risk of cyber threats, such as hacking and data breaches, is a significant concern for e-Businesses. Sensitive information can be compromised, posing a threat to both the business and its customers.
• People’s Resistance: Many individuals are resistant to adopting e-Business practices, particularly those who are accustomed to traditional methods. This resistance can hinder the transition to online business models.

Q3: Briefly explain the different payment mechanisms available for online shopping.

Ans: Online shopping utilizes various payment mechanisms to facilitate transactions. Here are several common methods:

• Cash on Delivery (COD): This option allows customers to pay in cash when the goods are delivered. It is popular among consumers who prefer to inspect products before payment.
• Cheque Payments: Customers can opt to pay via cheque, which the vendor arranges to collect. Delivery usually occurs after the cheque has cleared, providing a secure transaction method.
• Net-Banking Transfers: This method enables customers to transfer funds directly from their bank accounts to the seller. It is a secure and swift way of completing online payments.
• Credit/Debit Cards: These cards are widely used in online transactions. Credit cards allow purchases on credit, while debit cards withdraw funds directly from the customer’s bank account.
• Digital Cash: Digital cash represents a form of electronic currency that exists online. Customers can deposit money into a digital wallet and use it for purchases, providing a convenient and often anonymous payment option.

Q4: Briefly explain the need for outsourcing.

Ans: Outsourcing has become a vital strategy for many businesses seeking to improve efficiency and reduce costs. Here are five reasons why outsourcing is necessary:

• Focus on Core Activities: By outsourcing non-core functions, businesses can concentrate their resources and efforts on their primary operations. This focus can lead to improved performance and growth.
• Access to Expertise: Outsourcing allows companies to tap into the specialized skills and knowledge of external providers. This can lead to higher quality work and innovative solutions that may not be available in-house.
• Cost Reduction: Outsourcing often results in lower operational costs. Companies can benefit from the cost efficiencies of outsourcing partners, allowing them to offer competitive pricing and improve profit margins.
• Flexibility and Scalability: Outsourcing provides businesses with the flexibility to scale operations up or down as needed. This adaptability is especially valuable in rapidly changing markets or during peak seasons.
• Economic Growth: Outsourcing can stimulate economic development by creating jobs and boosting productivity. It can also enhance the competitiveness of businesses in the global marketplace.

Q5: State the concerns over outsourcing.

Ans: While outsourcing has clear benefits, it also presents several concerns that businesses must address. Here are five key concerns associated with outsourcing:

• Confidentiality Risks: Sharing sensitive information with outsourcing partners can lead to potential breaches of confidentiality. Companies must ensure that their data is protected and that partners adhere to strict privacy standards.
• Sweat Shopping: Some companies may exploit low-cost labor in developing countries, leading to ethical concerns regarding working conditions. This practice, known as sweat shopping, can harm a company's reputation and violate human rights.
• Ethical Concerns: Outsourcing can raise ethical issues, particularly when it involves questionable labor practices or exploitation of workers. Businesses must evaluate their partners to ensure compliance with ethical standards.
• Resistance from Employees: Outsourcing can lead to job losses in the home country, creating resistance from employees and the public. This backlash can damage a company's image and affect employee morale.
• Dependence on Third Parties: Relying on external providers for critical functions can create vulnerabilities. If an outsourcing partner fails to deliver, it can disrupt operations and negatively impact customer satisfaction.