Unit 5: Emerging Modes of Business
1. **Which of the following best defines e-business?**
- A) Conducting business using physical transactions only
- B) Conducting industry, trade, and commerce using computer networks
- C) Business-to-business transactions only
- D) Business conducted only through mobile applications
- **Answer: B**
2. **What is one major distinction between e-business and e-commerce?**
- A) E-commerce is a subset of e-business
- B) E-business involves only online shopping
- C) E-business is only for large corporations
- D) E-commerce includes human resources management
- **Answer: A**
3. **In which type of e-business model does a firm primarily interact with individual customers?**
- A) B2B
- B) B2C
- C) C2B
- D) C2C
- **Answer: B**
4. **What is one benefit of e-business for business organizations?**
- A) Limited access to international markets
- B) Higher operational costs
- C) Competitive advantage over traditional business models
- D) Slower communication with suppliers
- **Answer: C**
5. **What does “B2E commerce” represent in e-business models?**
- A) Business-to-Educator transactions
- B) Business-to-Environment transactions
- C) Business-to-Employee transactions
- D) Business-to-Economy transactions
- **Answer: C**
6. **Which of the following is a primary concern associated with e-business?**
- A) High personal touch with customers
- B) Data storage and transmission risks
- C) Higher costs for setting up infrastructure
- D) Limited global reach
- **Answer: B**
7. **What is “Intra-B commerce” focused on?**
- A) External business transactions
- B) Customer-to-customer transactions
- C) Internal processes within a business
- D) Business-to-customer interactions
- **Answer: C**
8. **Which of the following payment methods is not commonly associated with online shopping?**
- A) Cash-on-delivery
- B) Debit or credit cards
- C) Cheque payments
- D) Cash payments directly at store
- **Answer: D**
9. **Which term refers to business conducted electronically between consumers and consumers?**
- A) B2B
- B) B2C
- C) C2B
- D) C2C
- **Answer: D**
10. **Which is NOT a limitation of e-business?**
- A) Increased risk due to anonymity
- B) High degree of personal touch
- C) Technology capability requirements
- D) Incongruence between order giving and delivery
- **Answer: B**
11. **What is one key benefit of e-commerce for consumers?**
- A) Limited product choices
- B) Higher product prices
- C) Flexibility in delivery and payment options
- D) Restricted availability of products
- **Answer: C**
12. **Which of the following describes the term "pull supply chain management"?**
- A) Demand-driven supply chain where products are produced based on customer orders
- B) Supplier-controlled inventory management
- C) Large stockpiling of products by manufacturers
- D) Physical transportation of products from supplier to customer
- **Answer: A**
13. **What is the main function of e-Procurement?**
- A) Physical store inventory management
- B) Internet-based sales transactions between businesses
- C) Digital record-keeping of business sales
- D) Customer relationship management
- **Answer: B**
14. **Which of the following best defines e-Bidding?**
- A) Fixed price sales only available online
- B) Online auction where buyers can bid for products
- C) Offline product purchasing through brokers
- D) Real-time negotiation between two individuals
- **Answer: B**
15. **What is a VPN primarily used for in e-business?**
- A) Online shopping without an internet connection
- B) Enabling employees to work remotely through secure networks
- C) Storing physical data at remote locations
- D) Conducting secure cash-on-delivery transactions
- **Answer: B**
16. **What is a key limitation of e-business compared to traditional business?**
- A) Slower delivery of digital products
- B) Lower reach for small businesses
- C) Lack of interpersonal interactions
- D) Limited use of technology
- **Answer: C**
17. **Which of these is an example of C2C (Consumer-to-Consumer) commerce?**
- A) A company purchasing raw materials from a supplier
- B) Online shopping at a retail website
- C) A customer selling a used laptop to another customer on a platform like eBay
- D) A business offering customized products to clients
- **Answer: C**
18. **What is a digital signature, as per the Information Technology Act 2000?**
- A) A typed name at the end of an email
- B) A scanned copy of a physical signature
- C) An encrypted electronic mark for document verification
- D) An electronic document without encryption
- **Answer: C**
19. **Which of the following is an example of e-Delivery?**
- A) Shipment of physical goods
- B) Delivery of digital products like e-books and software over the internet
- C) Customer collection of items from a retail store
- D) Online fund transfer between businesses
- **Answer: B**
20. **The term "digital divide" refers to:**
- A) The high cost of digital products
- B) The difference between online and offline businesses
- C) The gap between those with and without access to digital technology
- D) The distinction between traditional and digital payments
- **Answer: C**
21. **Which technology is commonly used to secure online payment details?**
- A) VPN
- B) Secure Sockets Layer (SSL)
- C) USB drive encryption
- D) Computer antivirus software
- **Answer: B**
22. **Which risk is associated with data storage in e-business?**
- A) Delays in product delivery
- B) Loss of competitive advantage
- C) Unauthorized access or modification of data
- D) Loss of physical office space
- **Answer: C**
23. **One of the main benefits of e-commerce is the movement towards a paperless society. Which of these supports this transition?**
- A) Using email for business communications
- B) Conducting all transactions via postal services
- C) Requiring physical copies of all records
- D) Reducing digital document storage
- **Answer: A**
24. **In B2B e-commerce, which parties are involved?**
- A) Consumer and consumer
- B) Business and consumer
- C) Business and business
- D) Employee and customer
- **Answer: C**
25. **Why is e-business said to have a global reach?**
- A) It is limited to local markets
- B) It allows access to international customers and sellers
- C) It restricts buyers to physical store locations
- D) It operates only in certain countries
- **Answer: B**
26. **Which of the following statements about e-Business is correct?**
- A) It requires physical stores to operate.
- B) It is not affected by technological advancements.
- C) It includes both internal and external transactions using networks.
- D) It is solely focused on consumer-to-consumer transactions.
- **Answer: C**
27. **What is the main purpose of encryption in e-business?**
- A) To increase the transaction speed
- B) To make data accessible to everyone
- C) To protect data by converting it into an unreadable format
- D) To enable sharing of data across multiple devices
- **Answer: C**
28. **Which of the following best describes "Business Process Outsourcing" (BPO)?**
- A) An internal process where businesses manage their own data
- B) Outsourcing only manufacturing processes to third-party companies
- C) Contracting out non-core business processes to external firms
- D) Limiting business operations within one country
- **Answer: C**
29. **Which model allows customers to set their own prices or place bids for products?**
- A) B2B
- B) C2C
- C) e-Bidding
- D) e-Banking
- **Answer: C**
30. **Which of the following best describes e-commerce?**
- A) A subset of e-business focused on online transactions with suppliers and customers
- B) An electronic communication tool for personal use only
- C) A business that requires in-person interactions
- D) An outdated mode of business with limited reach
- **Answer: A**
31. **Which is NOT a benefit of Business Process Outsourcing (BPO)?**
- A) Cost savings for businesses
- B) Access to specialized expertise
- C) Increased operational control
- D) Flexibility in managing non-core tasks
- **Answer: C**
32. **What is one of the primary security concerns for e-business transactions?**
- A) Excessive use of paper for documentation
- B) Long wait times for order confirmation
- C) Risks of identity theft and data breaches
- D) Limited product selection
- **Answer: C**
33. **Which term refers to business transactions made entirely within the company?**
- A) C2B Commerce
- B) B2C Commerce
- C) B2B Commerce
- D) Intra-B Commerce
- **Answer: D**
34. **Which feature distinguishes traditional business from e-business?**
- A) Traditional businesses have flat organizational structures
- B) E-business allows direct interactions with customers
- C) Traditional businesses do not involve human capital
- D) E-business transactions cannot be done online
- **Answer: B**
35. **Which of the following is a step involved in online trading?**
- A) Physical store setup
- B) Order processing and payment
- C) Stockpiling products in multiple warehouses
- D) Manual catalog creation
- **Answer: B**
36. **Which of these is a limitation of traditional business compared to e-business?**
- A) Easy global reach
- B) Lower operational costs
- C) Limited flexibility in response times
- D) High-speed customer interaction
- **Answer: C**
37. **The term "sweat-shopping" in the context of Business Process Outsourcing refers to:**
- A) A highly automated work process
- B) Low-cost labor practices often under poor working conditions
- C) High-cost outsourcing models
- D) Environmentally friendly business practices
- **Answer: B**
38. **Which of the following e-business risks relates to non-traceability?**
- A) Data loss due to natural disasters
- B) Anonymity of parties involved in online transactions
- C) Outdated software systems
- D) Limited use of online marketing strategies
- **Answer: B**
39. **In e-business, what is a "pull supply chain"?**
- A) A strategy where products are manufactured in bulk without considering demand
- B) A supply chain controlled entirely by suppliers
- C) A demand-driven chain where production is based on consumer demand
- D) A distribution model that only delivers to local customers
- **Answer: C**
40. **Which of the following is an example of e-Auction?**
- A) Listing a product at a fixed price online
- B) Selling products directly in stores
- C) An online marketplace where buyers can bid for products
- D) Trading goods physically at a marketplace
- **Answer: C**
41. **Which law provides legal recognition to digital signatures in India?**
- A) Indian Evidence Act
- B) Information Technology Act, 2000
- C) Data Protection Act
- D) Cyber Security Act
- **Answer: B**
42. **What is one benefit of e-Communication in e-business?**
- A) Limited audience reach
- B) High costs of communication
- C) Faster and cost-effective communication with customers
- D) Delayed feedback from consumers
- **Answer: C**
43. **How does e-business improve operational efficiency?**
- A) By reducing the quality of customer service
- B) By eliminating the need for skilled labor
- C) Through faster information exchange and lower transaction costs
- D) By reducing the number of available products
- **Answer: C**
44. **What does “digitisation” mean in the context of e-business?**
- A) Conversion of physical assets into digital form
- B) Decreasing production levels to reduce costs
- C) Setting up a physical office for online businesses
- D) Using only printed documents for transactions
- **Answer: A**
45. **Which of the following is an example of e-Trading?**
- A) Purchasing groceries in a physical store
- B) Online trading of stocks and shares through platforms like Sharekhan
- C) Paying with cash at a supermarket
- D) Registering a new business with a government agency
- **Answer: B**
46. **Which of these is a component of e-Commerce?**
- A) Only internal organizational communication
- B) Transactions limited to a company’s local area
- C) Online interactions between a company and its customers or suppliers
- D) Traditional in-store shopping
- **Answer: C**
47. **Which of the following statements is true regarding the flexibility of e-business?**
- A) E-business operations are restricted to certain hours.
- B) E-business allows businesses to operate 24/7, anytime, anywhere.
- C) E-business requires a physical presence for every transaction.
- D) E-business has the same limitations as traditional business hours.
- **Answer: B**
48. **The concept of "cyber space without boundaries" in e-business refers to:**
- A) The ability to conduct business activities globally through the internet
- B) The need for a specific local office for each business transaction
- C) Limitations of reaching customers only within a specific region
- D) A focus only on domestic markets
- **Answer: A**
49. **Which of the following best illustrates Business Process Outsourcing (BPO)?**
- A) A company handling all its own customer service tasks
- B) Contracting with an external vendor for payroll and accounting services
- C) Storing product inventory within company facilities
- D) Conducting all human resources functions in-house
- **Answer: B**
50. **What is the primary benefit of e-bidding for customers?**
- A) Fixed pricing options
- B) Opportunity to suggest or negotiate the price they are willing to pay
- C) Limited selection of goods
- D) Standardized payment options only
- **Answer: B**
51. **Which payment method is most commonly used in online transactions?**
- A) Cash-on-delivery
- B) Digital wallet payments
- C) Cheques
- D) Credit and debit cards
- **Answer: D**
52. **What is the purpose of the Information Technology Act, 2000, in e-business?**
- A) To restrict online shopping in India
- B) To establish legal recognition of electronic records and digital signatures
- C) To increase tax rates on digital services
- D) To prevent businesses from adopting e-commerce
- **Answer: B**
53. **Which e-business model involves a consumer selling directly to another consumer?**
- A) B2B
- B) C2B
- C) B2C
- D) C2C
- **Answer: D**
54. **An advantage of e-commerce over traditional business is that it:**
- A) Requires a high number of intermediaries
- B) Limits product availability to local regions
- C) Enables faster response to customer demands
- D) Restricts global market reach
- **Answer: C**
55. **Which of the following describes the purpose of cookies in e-business?**
- A) Track customer preferences and login information
- B) Increase the loading time of web pages
- C) Restrict access to online stores
- D) Reduce product prices automatically
- **Answer: A**
56. **Which of the following is a form of digital currency used in online transactions?**
- A) Cheque
- B) Cash
- C) Digital cash
- D) Bank transfer
- **Answer: C**
57. **What does the term "supply chain management" mean in an e-business context?**
- A) Managing product returns exclusively
- B) The flow of goods, information, and finances from supplier to consumer
- C) Storing extra inventory in a single location
- D) Limiting product distribution to only local areas
- **Answer: B**
58. **Which risk associated with e-business relates specifically to intellectual property?**
- A) Data theft
- B) Low transaction costs
- C) Delayed order processing
- D) Need for physical presence
- **Answer: A**
59. **What feature of e-business allows employees to work from any location?**
- A) Hierarchical structure
- B) Fixed operating hours
- C) Use of intranet and VPN technology
- D) High physical infrastructure cost
- **Answer: C**
60. **Which e-business model is characterized by a consumer initiating an interaction to buy a product from a business?**
- A) B2B
- B) B2C
- C) C2B
- D) Intra-B
- **Answer: C**
61. **Which of the following illustrates a limitation of e-business?**
- A) The inability to connect with consumers globally
- B) High transaction costs
- C) Lack of interpersonal touch in transactions
- D) Limited access to digital payment options
- **Answer: C**
62. **A key difference between traditional and e-business structures is that:**
- A) E-business has a vertical, hierarchical structure
- B) E-business often uses a flat or horizontal structure for communication
- C) Traditional businesses use only flat structures
- D) E-business lacks clear communication channels
- **Answer: B**
63. **One of the primary objectives of e-commerce for consumers is to:**
- A) Reduce global market reach
- B) Limit choices and options
- C) Provide flexibility and convenience in shopping
- D) Increase personal interaction in transactions
- **Answer: C**
64. **Which of the following describes an advantage of B2B commerce?**
- A) It limits the flow of information between firms
- B) Allows firms to streamline operations with suppliers
- C) Encourages individual consumers to shop more frequently
- D) Relies on in-person interactions only
- **Answer: B**
65. **What is the purpose of SSL (Secure Sockets Layer) in e-commerce?**
- A) Enhance website speed
- B) Secure data during online transactions
- C) Increase the storage capacity of servers
- D) Provide free access to online resources
- **Answer: B**
66. **What is the role of a call center in e-business?**
- A) To manage only internal company tasks
- B) To provide 24/7 support and interaction with customers
- C) To limit customer outreach
- D) To enhance physical store interactions
- **Answer: B**
67. **Which of the following terms is used to describe unauthorized access to data during e-business transactions?**
- A) Intranet
- B) Virus
- C) Hacking
- D) Call center breach
- **Answer: C**
68. **Which e-business application includes online trading of stocks and other financial instruments?**
- A) e-Delivery
- B) e-Trading
- C) e-Procurement
- D) e-Auction
- **Answer: B**
69. **A primary reason businesses are shifting to e-business models is:**
- A) Limited access to digital tools
- B) Decrease in customer expectations
- C) Increased competitive pressure and customer demand
- D) To reduce access to international markets
- **Answer: C**
70. **The primary objective of intranet use within a company is to:**
- A) Facilitate communication with external customers only
- B) Manage inventory in physical stores
- C) Enable secure communication within a business
- D) Improve transaction speeds for B2C interactions
- **Answer: C**
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