Here, we will discuss the summary and key facts in MCQ format of Chapter 5: Emerging Modes of Business | Part I: Foundations of Business | Business Studies |Textbook for Class XI
1. Which one is not one of the strongest trends for shaping the business?
a) Digitisation
b) Outsourcing
c) Internationalisation and globalisation
d) Telecommunication
Answer. d) Telecommunication
the three strongest trends that are shaping business would be:
(i) digitisation — the conversion of text, sound, images, video, and other content into a series of ones and zeroes that can be transmitted electronically,
(ii) outsourcing, and
(iii) internationalisation and globalisation.
2. The conduct of industry, trade and commerce using the computer networks is known as --
a) E-Governance
b) Digital Money
c) E-commerce
d) E-business
Answer. d) E-business
If the term business is taken to mean a wide range of activities comprising industry, trade and commerce, e-business may be defined as the conduct of industry, trade and commerce using the computer networks.
3. The firm’s interactions with its customers and suppliers over the internet are known as ---
a) E-Governance
b) Digital Money
c) E-commerce
d) E-business
Answer. c) E-commerce
Though, many a time, the terms e-business and e-commerce are used interchangeably, yet more precise
definitions would distinguish between the two. Just as the term ‘business’ is a broader term than ‘commerce’, e-business is a more elaborate term and comprises various business transactions and functions conducted electronically, including the more popular gamut of transactions called ‘e-commerce.’ e-commerce covers a firm’s interactions with its customers and suppliers over the internet. e-business includes not only E-commerce, but also other electronically conducted business functions such as production, inventory management, product development, accounting and finance and human resource management.
4. In B2B commerce, the parties involved in the transaction are:
a) Business and consumers
b) Consumers and consumers
c) Business firms and business firms
d) Government and consumers
Answer: c) Business firms and business firms
B2B = Business-to-Business, where both parties are business firms, such as manufacturers, suppliers, and distributors.
For example, the manufacture of an automobile requires assembly of a large number of components which in turn are being manufactured elsewhere — within the vicinity of the automobile factory or even overseas.
5. Historically, e-commerce originally referred to B2B transactions using which technology?
a) ATM technology
b) Electronic Data Interchange (EDI)
c) Video conferencing
d) Social media
Answer: b) Electronic Data Interchange (EDI)
Historically, the term e-commerce originally meant the facilitation of B2B transactions using Electronic Data Interchange (EDI) technology to send and receive commercial documents like purchase orders or invoices.
6. Intra-B commerce involves electronic transactions in :
a) Between two different companies
b) Between a business and its customers
c) Among different departments and persons within the same business firm
d) Between two individual consumers
Answer: c) Among different departments and persons within the same business firm
Intra-B Commerce involved in the electronic transactions are from within a given business firm, hence, the name intra-B commerce. As noted earlier too, one critical difference between e-commerce and e-business is that, e-commerce comprises a business firm’s interaction with its suppliers, and distributors/other business firms (hence, the name B2B) and customers (B2C) over the internet. While e-business is a much wider term and also includes the use of intranet for managing interactions anddealings among various departments
and persons within a firm
7. Which type of e-commerce involves consumers selling goods or services directly to other consumers?
a) B2B
b) B2C
c) Intra-B
d) C2C
Answer: d) C2C
C2C commerce originates from the consumer, and the ultimate destination is also consumers; thus the name C2C commerce. This type of commerce is best suited for dealing in goods for which there is no established market mechanism, for example, selling used books or clothes either on a cash or barter basis. The vast space of the internet allows persons to globally search for potential buyers.
8. Which of the following is a major benefit of e-business?
a) High investment requirement
b) Limited market reach
c) 24×7 convenience
d) Greater dependence on paperwork
Answer: c) 24×7 convenience
E-business allows business activities to be conducted anytime and anywhere, providing 24×7 convenience.
9. Which benefit of e-business refers to access to customers and markets across geographical boundaries?
a) Speed
b) Global reach
c) Paperless society
d) Low personal touch
Answer: b) Global reach
The Internet enables sellers to access global markets and buyers to choose products from different parts of the world.
10. Which of the following is a limitation of e-business?
a) Low personal touch
b) Global reach
c) Ease of formation
d) Reduced paperwork
Answer: a) Low personal touch
E-business lacks the warmth of face-to-face interpersonal interaction, making it less suitable for products requiring high personal touch.
11. The division of society based on familiarity and non-familiarity with digital technology is called:
a) Digital divide
b) Technology gap
c) Information divide
d) Communication barrier
Answer: a) Digital divide
The digital divide arises because different people have different levels of access to and familiarity with digital technology.
12. Which of the following is an example of e-Delivery?
a) Buying shares through a broker
b) Online delivery of an e-book
c) Physical delivery of furniture
d) Cash payment at a shop
Answer: b) Online delivery of an e-book
E-delivery includes electronic delivery of software, photographs, videos, e-books, e-journals, and multimedia content.
13. Which stage of an online transaction includes advertising and information-seeking?
a) Purchase/sale stage
b)Delivery stage
c) Pre-purchase/sale stage
d) Payment stage
Answer: c) Pre-purchase/sale stage
Online transactions broadly involve pre-purchase/sale, purchase/sale and delivery stages.
14. What is an online record of the items selected by a customer while shopping?
a) Digital wallet
b) Shopping cart
c) Cyber account
d) E-register
Answer: b) Shopping cart
A shopping cart records the items selected by the customer before checkout.
15. Which technology is used to transform information into an unreadable format to protect it during transmission?
a) Cookies
b) Cryptography
c) Digital divide
d) E-auction
Answer: b) Cryptography
Cryptography protects information by encrypting it into ciphertext, which can be converted back into plaintext using the appropriate key.
16. Which of the following is NOT a transaction risk in e-business?
a) Default on order taking/giving
b) Default on delivery
c) Default on payment
d) Global reach
Answer: d) Global reach
Transaction risks include default on order, delivery and payment. Global reach is a benefit of e-business, not a transaction risk.
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