Emerging Modes of Business

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Summary

Chapter 5: Emerging Modes of Business

Summary

E-business and outsourcing are reshaping business practices.
Internal and external pressures drive the shift towards e-business.
E-business offers opportunities for anytime, anywhere transactions but lacks personal touch.
Security and privacy concerns are significant in e-business.
Outsourcing is becoming common for various business processes.
E-business and outsourcing are referred to as emerging modes of business.

Learning Objectives

State the meaning of e-business.
Explain the process of online buying and selling as part of e-business.
Distinguish e-business from traditional business.
State benefits of switching to electronic mode.
Explain requirements for initiating e-business.
Identify major security concerns in e-business.
Discuss the need for business process outsourcing.
Appreciate the scope of business process outsourcing.

Key Differences Between Traditional Business and e-Business

Basis of Distinction	Traditional Business	e-Business
Ease of Formation	Difficult	Simple
Physical Presence	Required	Not required
Locational Requirements	Proximity to raw materials or market	None
Cost of Setting Up	High due to fixed charges	Low due to no physical facilities
Operating Cost	High	Low due to reliance on networks
Nature of Contact	Indirect through intermediaries	Direct
Nature of Internal Communication	Hierarchical	Non-hierarchical
Response Time	Long	Instantaneous
Shape of Organizational Structure	Vertical/tall due to hierarchy	Horizontal/flat due to directness of command
Business Processes	Sequential, longer cycle	Simultaneous, shorter cycle
Opportunity for Interpersonal Touch	Much more	Less, but significant for digital products

Common Mistakes & Exam Tips

Confusing e-business with e-commerce; remember e-business is broader.
Overlooking security risks in e-business; always mention them in discussions.
Not recognizing the importance of outsourcing in modern business practices.

Learning Objectives

State the meaning of e-business
Explain the process of online buying and selling as a part of e-business
Distinguish e-business from traditional business
State benefits of switching over to electronic mode
Explain requirements for a firm's initiation into e-business
Identify major security concerns of electronic mode of doing business
Discuss the need for business process outsourcing
Appreciate the scope of business process outsourcing

Detailed Notes

Chapter 5: Emerging Modes of Business

Learning Objectives

State the meaning of e-business.
Explain the process of online buying and selling as a part of e-business.
Distinguish e-business from traditional business.
State benefits of switching over to electronic mode.
Explain requirements for a firm's initiation into e-business.
Identify major security concerns of electronic mode of doing business.
Discuss the need for business process outsourcing.
Appreciate the scope of business process outsourcing.

Introduction

The way business is done has undergone fundamental changes, particularly through:

Digitisation - Conversion of content into electronic format.
Outsourcing - Contracting out business processes.
Internationalisation and Globalisation - Expanding business reach.

E-Business vs Traditional Business

Comparison Table

Basis of Distinction	Traditional Business	e-Business
Ease of Formation	Difficult	Simple
Physical Presence	Required	Not Required
Locational Requirements	Proximity to source	None
Cost of Setting Up	High	Low
Operating Cost	High	Low
Nature of Contact	Indirect	Direct
Internal Communication	Hierarchical	Non-hierarchical
Response Time	Long	Instantaneous
Organizational Structure	Vertical	Horizontal/Flat
Business Processes	Sequential	Simultaneous
Interpersonal Touch	Much More	Less

Applications of E-Business

e-Procurement: Internet-based sales transactions between businesses.
e-Bidding/e-Auction: Online bidding for goods and services.
e-Communication/e-Promotion: Online marketing and communication strategies.
e-Delivery: Electronic delivery of digital content and services.
e-Trading: Online buying and selling of financial instruments.

Security and Safety of e-Transactions

Types of Risks

Transaction Risks: Vulnerability in online transactions.
Data Storage and Transmission Risks: Risks associated with data handling.
Threat to Intellectual Property and Privacy Risks: Concerns over data protection.

Conclusion

E-business and outsourcing are reshaping business operations, driven by the need for efficiency and competitive advantage. These emerging modes of business continue to evolve, presenting both opportunities and challenges.

Exam Tips & Common Mistakes

Common Mistakes and Exam Tips

Common Pitfalls

Misunderstanding e-business vs. traditional business: Students often confuse the definitions and characteristics of e-business with traditional business models. Ensure you can clearly distinguish between the two.
Ignoring security concerns: Many overlook the importance of discussing security risks associated with e-business transactions. Be prepared to explain these risks in detail.
Underestimating the need for business process outsourcing: Students may fail to appreciate the significance of outsourcing in the context of e-business. Understand its benefits and limitations.
Neglecting the process of online buying and selling: Some students do not adequately describe the steps involved in online transactions, such as registration, order placement, and payment mechanisms.

Exam Tips

Define key terms: Be sure to define terms like e-business, e-commerce, and digital cash clearly in your answers.
Use examples: When discussing concepts, use examples from the text to illustrate your points, such as e-procurement and e-bidding.
Discuss limitations: Always mention the limitations of e-business, such as lack of personal touch and security concerns, when asked about its scope.
Focus on the learning objectives: Ensure your answers align with the learning objectives outlined in the chapter to cover all necessary points.

Practice & Assessment

Multiple Choice Questions

Delayed delivery of goods

Unauthorized access and data theft

Increased operational costs

Higher transaction fees

Correct Answer: B

Solution:

Data stored in systems and during transmission is exposed to risks such as unauthorized access and data theft.

Buying and selling of consumer goods

Internet-based sales transactions between business firms

Online customer service

Digital marketing campaigns

Correct Answer: B

Solution:

E-procurement involves internet-based sales transactions between business firms, including reverse auctions and digital marketplaces.

High personal interaction

Security concerns over e-transactions

Limited access to global markets

High operational costs

Correct Answer: B

Solution:

E-business suffers from security concerns over e-transactions and privacy issues.

To reduce the cycle time of product delivery.

To facilitate online auctions between buyers and sellers.

To encrypt data for secure transmission over the internet.

To automate the process of supply chain management.

Correct Answer: C

Solution:

Secure Sockets Layer (SSL) technology is used to encrypt data, ensuring secure transmission over the internet, thereby protecting sensitive information from being intercepted.

Increased production costs

Threat to intellectual property and privacy

Limited product variety

Decreased global reach

Correct Answer: B

Solution:

A major security concern in e-business is the threat to intellectual property and privacy, as information available on the internet can be copied and misused.

High personal touch

Global reach

Reduced cycle time

Paperless transactions

Correct Answer: A

Solution:

E-business is characterized by a lack of personal touch, as interactions are conducted online.

High personal touch in customer interactions.

Limited access to global markets.

Concerns over security of e-transactions.

Inability to outsource business processes.

Correct Answer: C

Solution:

A significant limitation of e-business is the concern over the security of e-transactions and the privacy of individuals who transact business over the internet.

It speeds up online transactions

It enhances the visual appeal of websites

It protects data by transforming it into an unreadable format

It reduces the cost of digital marketing

Correct Answer: C

Solution:

Cryptography in e-business protects data by transforming it into an unreadable format called 'cyphertext', ensuring secure data transmission.

To reduce operational costs and increase efficiency

To enhance personal customer interactions

To focus on traditional manufacturing methods

To limit the use of digital technologies

Correct Answer: A

Solution:

Outsourcing allows businesses to reduce operational costs and increase efficiency by focusing on core activities and contracting out non-core processes.

Physical currency used in online transactions

Electronic currency without physical properties

A form of barter system for online exchanges

A method of traditional banking

Correct Answer: B

Solution:

Digital cash is a form of electronic currency that exists only in cyberspace, allowing the use of real currency in an electronic format without physical properties.

High personal touch with customers

Limited access to global markets

Low personal interaction with customers

Increased paperwork and red tape

Correct Answer: C

Solution:

E-business is high-tech but suffers from low personal touch, as customers do not get attended to on an interpersonal basis.

High cost of goods

Default on order taking/giving

Limited product variety

Long delivery times

Correct Answer: B

Solution:

Online transactions are prone to risks such as default on order taking/giving, where either the seller or buyer denies placing the order.

Increased face-to-face interaction

Security of e-transactions

Limited access to global markets

Higher costs of digital marketing

Correct Answer: B

Solution:

A major concern for businesses in e-commerce is the security of e-transactions and the privacy of customer data.

To enhance website aesthetics

To verify customer identity and details

To encrypt transaction data

To store digital cash

Correct Answer: B

Solution:

Cookies are used in e-business to verify customer identity and details during online transactions, similar to caller ID in telephones.

High operational costs

Limited product availability

Low personal touch in customer interactions

Inflexibility in business processes

Correct Answer: C

Solution:

A major limitation of e-business is the low personal touch in customer interactions, which can affect customer satisfaction.

A company selling products to consumers

A consumer selling used books to another consumer

A business purchasing raw materials from a supplier

A retailer buying goods from a wholesaler

Correct Answer: B

Solution:

C2C commerce involves transactions between consumers, such as selling used books.

Vital Information Under Siege

Virtual Information Under Security

Vital Internet User System

Virtual Internet User Security

Correct Answer: A

Solution:

The acronym 'VIRUS' stands for Vital Information Under Siege, indicating a program that replicates itself on other computer systems.

Increased personal touch with customers

Global reach/access

Reduced cycle time

Movement towards a paperless society

Correct Answer: A

Solution:

E-business is high-tech but low in personal touch, which is a limitation rather than a benefit.

Physical retail space

Website development

Internet connection

Secure payment system

Correct Answer: A

Solution:

Physical retail space is not required for e-business as it operates online. Instead, a website, internet connection, and secure payment system are essential.

Mailing a physical book

Delivering groceries in person

Sending an e-book via email

Shipping a car

Correct Answer: C

Solution:

E-delivery includes the electronic delivery of items such as e-books, which can be sent via email.

To enhance the speed of online transactions

To transform information into an unreadable format for security

To increase the bandwidth of internet connections

To improve the visual appeal of websites

Correct Answer: B

Solution:

Cryptography is used to protect information by transforming it into an unreadable format called 'cyphertext', ensuring data security during transmission.

Increased operational costs

Limited access to global markets

Data theft and unauthorized modification

Reduced customer reach

Correct Answer: C

Solution:

Data stored in systems and during transmission is exposed to risks such as theft or unauthorized modification, which can lead to significant losses.

Physical currency used in online transactions

Electronic currency existing only in cyberspace

A form of cryptocurrency

Paper currency converted to digital format

Correct Answer: B

Solution:

Digital cash is a form of electronic currency that exists only in cyberspace and is used for online transactions without any physical form.

Transactions between businesses

Transactions between consumers

Transactions between businesses and consumers

Transactions between government and businesses

Correct Answer: B

Solution:

C2C commerce involves transactions where both the seller and the buyer are consumers.

Vital Information Under Siege

Virtual Information User System

Visual Input and Response Utility System

Variable Information and Resource Usage System

Correct Answer: A

Solution:

VIRUS stands for Vital Information Under Siege, indicating a program that replicates itself on other computer systems.

Default on order taking/giving

Physical theft

Natural disasters

Machine breakdown

Correct Answer: A

Solution:

Online transactions are prone to risks such as 'default on order taking/giving', where either the seller or the buyer denies placing the order.

Secure Sockets Layer (SSL)

Digital Cash

Cyphertext

Correct Answer: A

Solution:

Secure Sockets Layer (SSL) is a technology used to encrypt data, such as credit card details, to protect it during online transactions.

B2B

B2C

C2C

B2G

Correct Answer: C

Solution:

C2C commerce involves transactions between consumers, such as selling used goods.

Facilitating online transactions between consumers

Facilitating online sales transactions between businesses

Providing customer support through call centers

Managing digital marketing campaigns

Correct Answer: B

Solution:

E-procurement involves internet-based sales transactions between business firms, including auctions and digital marketplaces.

Internet-based sales transactions between business firms

Consumer-to-consumer transactions

A form of digital currency

A type of online advertising

Correct Answer: A

Solution:

E-procurement involves internet-based sales transactions between business firms.

Increased demand for personalized customer service

Quest for improvement and efficiency within firms

Lack of traditional business opportunities

Decrease in global internet connectivity

Correct Answer: B

Solution:

The emergence of e-business is primarily driven by the internal quest for improvement and efficiency within firms, as well as external competitive pressures.

SSL (Secure Sockets Layer)

HTTP (Hypertext Transfer Protocol)

FTP (File Transfer Protocol)

SMTP (Simple Mail Transfer Protocol)

Correct Answer: A

Solution:

SSL (Secure Sockets Layer) is used to encrypt credit card details to protect them from being misused during online transactions.

A company converting its physical product catalog into an online digital format.

A business outsourcing its customer service operations to another country.

A retailer opening a new physical store in a different city.

A company using traditional mail to send invoices to customers.

Correct Answer: A

Solution:

Digitisation refers to the conversion of text, sound, images, video, and other content into a series of ones and zeroes that can be transmitted electronically. Converting a physical product catalog into an online digital format is a direct application of digitisation.

Default on order taking/giving

Increased physical store traffic

Higher production costs

Limited product variety

Correct Answer: A

Solution:

In e-business, a significant risk is 'default on order taking/giving', where either the seller or the buyer denies the transaction, leading to potential financial or reputational losses.

A type of digital currency

Encrypted information that is unreadable without a secret key

A virus that replicates itself

A method of online payment

Correct Answer: B

Solution:

Cyphertext refers to encrypted information that is unreadable without a secret key, used to protect data during transmission.

Firewall

Cryptography

Digital Signature

Biometrics

Correct Answer: B

Solution:

Cryptography is the technology used to protect data during transmission by converting it into an unreadable format called 'cyphertext'. Only those who possess a secret key can decrypt the message back into 'plaintext'.

Guaranteed delivery

Default on payment

Increased face-to-face interaction

Reduced data security

Correct Answer: B

Solution:

Default on payment is a common risk where the seller may not receive payment for goods supplied.

Secure Sockets Layer (SSL)

Firewall

Antivirus software

Correct Answer: B

Solution:

Secure Sockets Layer (SSL) is a standard security technology for establishing an encrypted link between a server and a client.

To enhance website design

To protect information by encrypting it

To increase server speed

To improve customer service

Correct Answer: B

Solution:

Cryptography is used to protect information by transforming it into an unreadable format called 'cyphertext', which can only be decrypted by those with a secret key.

Reduced operational costs

Increased global reach

Higher personal touch with customers

Faster transaction processing

Correct Answer: C

Solution:

E-business lacks the personal touch that is often present in traditional business interactions.

Increased physical storage costs

Data theft or modification

Faster data retrieval

Enhanced data accuracy

Correct Answer: B

Solution:

Data stored in e-business systems is exposed to risks such as theft or unauthorized modification.

To enhance website graphics

To verify consumer's identity and previous purchases

To increase internet speed

To store website passwords

Correct Answer: B

Solution:

Cookies are used to verify consumer's identity and previous purchases, similar to caller ID in telephones, providing relevant information to sellers.

Higher personal interaction with customers

Reduced security risks

Ability to operate 24/7 without location constraints

Lower technological requirements

Correct Answer: C

Solution:

E-business allows firms to operate 24/7 and reach customers globally without being constrained by physical location or time, unlike traditional business models.

A company develops its own software in-house.

A company hires a local firm to manage its payroll processing.

A company expands its physical store locations.

A company increases its in-house production capacity.

Correct Answer: B

Solution:

Business Process Outsourcing involves contracting out certain business processes, such as payroll processing, to external firms to improve efficiency and focus on core activities.

To encrypt data for secure transmission

To verify customer details during registration

To enhance website graphics

To store large files for download

Correct Answer: B

Solution:

Cookies are used to verify customer details during registration, similar to caller ID in telephones, providing relevant information such as the consumer's name and address.

High operational cost

Limited geographical reach

Lack of personal touch

Inability to offer customization

Correct Answer: C

Solution:

E-business is limited by the lack of personal touch, as interactions are not conducted on an interpersonal basis, unlike traditional business models.

By reducing the need for skilled labor

Through economies of scale in mass production

By using digital platforms to tailor products to individual needs

By eliminating the need for physical inventory

Correct Answer: C

Solution:

E-commerce allows businesses to offer customised products at lower costs by using digital platforms to tailor products to individual needs, combining the benefits of mass production with customisation.

It has increased the cost of production.

It has led to mass production of homogeneous products.

It has enabled mass customization at lower costs.

It has reduced the need for skilled labor.

Correct Answer: C

Solution:

E-commerce allows for flexible manufacturing and mass customization, enabling businesses to offer customized products at lower costs, which was traditionally associated with mass-produced items.

Vital Information Under Siege

Virtual Information Under Security

Verified Information Under Surveillance

Vulnerable Information Under Scrutiny

Correct Answer: A

Solution:

The acronym 'VIRUS' stands for Vital Information Under Siege, referring to a program that replicates itself on other computer systems, potentially causing harm.

A virus that causes mere annoyance with on-screen displays.

A virus that disrupts the functioning of software applications.

A virus that damages target data files.

A virus that leads to the complete destruction of the system.

Correct Answer: D

Solution:

A Level-4 virus in computer security refers to a virus that causes complete destruction of the system, which is the most severe level of impact a virus can have.

A physical store location

A website on the World Wide Web

A large sales team

A traditional business model

Correct Answer: B

Solution:

A website on the World Wide Web is essential for a firm to conduct e-business.

Physical currency used in online transactions

Electronic currency existing only in cyberspace

Cash payments made at delivery

Checks and drafts used for online purchases

Correct Answer: B

Solution:

Digital cash is a form of electronic currency that exists only in cyberspace and is used for online transactions.

In-house production of goods

Contracting out business processes

Increasing physical retail outlets

Reducing the number of employees

Correct Answer: B

Solution:

BPO involves contracting out business processes to third-party service providers.

Limited reach to local markets

Increased paperwork

Global reach/access

Higher operational costs

Correct Answer: C

Solution:

A major benefit of e-business is its global reach/access, allowing sellers to access global markets and buyers to choose products from around the world.

Installing firewalls

Using cryptography

Regular software updates

Creating strong passwords

Correct Answer: B

Solution:

Cryptography is used to transform information into an unreadable format called 'cyphertext' to protect it during transmission, ensuring only those with a secret key can decrypt it.

Transactions are conducted between businesses and consumers.

Goods are sold by manufacturers directly to retailers.

Consumers sell goods and services to other consumers.

Businesses sell goods to wholesalers.

Correct Answer: C

Solution:

C2C commerce involves transactions where consumers sell goods or services directly to other consumers, often facilitated by platforms like eBay.

Reduced physical space requirements

Increased personal interaction

Higher operational costs

Limited global reach

Correct Answer: A

Solution:

E-business reduces the need for physical space as it operates online, unlike traditional businesses which require physical locations.

High transaction costs

Default on delivery

Excessive paperwork

Limited product variety

Correct Answer: B

Solution:

Online transactions are prone to risks such as default on delivery, where goods may not be delivered as intended.

True or False

Correct Answer: True

Solution:

Cryptography involves encrypting information into 'cyphertext', which can only be decrypted by someone with the secret key.

Correct Answer: True

Solution:

E-business and outsourcing are reshaping the way business is conducted and are considered emerging modes due to their evolving nature.

Correct Answer: True

Solution:

The acronym 'VIRUS' is explained as Vital Information Under Siege, indicating its potential to harm computer systems.

Correct Answer: True

Solution:

Level-4 viruses can lead to complete destruction of computer systems, making them a significant threat.

Correct Answer: False

Solution:

Online transactions are prone to various risks, including transaction, data storage, and transmission risks.

Correct Answer: False

Solution:

While internet access may be less widespread in rural areas, online shopping is still possible wherever internet connectivity is available.

Correct Answer: False

Solution:

E-business operates through a website, which is an online embodiment of the firm's content, not a physical location.

Correct Answer: False

Solution:

The internet significantly enhances the global reach of businesses by allowing access to global markets and enabling buyers to choose products from around the world.

Correct Answer: False

Solution:

While e-business reduces the reliance on physical locations, it does not completely eliminate the need for them, as some operations may still require physical presence.

Correct Answer: False

Solution:

The excerpt highlights that online transactions are prone to a number of risks, making security and safety issues crucial in e-business.

Correct Answer: True

Solution:

The internet allows business processes to transform from being sequential to parallel, thereby significantly reducing the cycle time from demand origin to fulfillment.

Correct Answer: False

Solution:

E-business allows transactions to occur anywhere and anytime, removing traditional time and location constraints.

Correct Answer: True

Solution:

E-business allows firms to operate online, which means they do not require a physical location, as the website serves as their location on the World Wide Web.

Correct Answer: False

Solution:

The excerpt clarifies that a website is not a physical location but an online embodiment of a firm's content.

Correct Answer: True

Solution:

The excerpt states that 'VIRUS' means Vital Information Under Siege.

Correct Answer: True

Solution:

The internet allows sellers to access global markets and buyers to choose products from around the world, enhancing global reach.

Correct Answer: False

Solution:

E-business transactions are prone to various risks, including transaction risks, data storage and transmission risks, and threats to intellectual property and privacy.

Correct Answer: True

Solution:

E-business enables firms to offer services and products to customers anytime and anywhere, removing traditional time and location constraints.

Correct Answer: True

Solution:

While e-business offers numerous advantages, it lacks the interpersonal interactions that are possible in traditional business settings.

Correct Answer: False

Solution:

E-business is high-tech but lacks the personal touch that traditional business offers, as interactions are not conducted on an interpersonal basis.

Correct Answer: True

Solution:

C2C commerce, facilitated by the internet, allows consumers to search globally for buyers, enhancing the market reach for selling goods like used books or clothes.

Correct Answer: True

Solution:

E-commerce allows organizations to offer customized products at costs previously associated with mass-produced items, thanks to advancements in technology.

Correct Answer: False

Solution:

Online transactions are prone to various risks, including transaction risks, data storage and transmission risks, and threats to intellectual property and privacy.

Correct Answer: True

Solution:

Cryptography involves encrypting information into 'cyphertext' to protect it during transmission, ensuring only those with the secret key can decrypt it.

Correct Answer: False

Solution:

E-business and traditional business differ significantly in their modes of operation, with e-business leveraging digital technologies to conduct transactions online.

Correct Answer: False

Solution:

Computer viruses can range from causing minor annoyances to completely destroying computer systems, as they replicate and spread.

Correct Answer: True

Solution:

The shift towards e-business and outsourcing is driven by internal factors like efficiency and improvement, and external factors such as competitive pressures and customer demands.

Correct Answer: True

Solution:

The effect of computer viruses can range from mere annoyance to complete destruction of the system.

Correct Answer: False

Solution:

E-business operates online and does not require a physical location. A website serves as the firm's location on the World Wide Web.

Correct Answer: False

Solution:

While e-business primarily operates online, it does not completely eliminate the need for physical locations, especially for certain operations like warehousing.

Correct Answer: True

Solution:

The excerpt mentions that e-business dismantles time and space/locational constraints on its performance.

Correct Answer: True

Solution:

E-commerce allows for customised products to be offered at costs previously associated with mass-produced items.

Correct Answer: False

Solution:

The internet significantly enhances globalization by providing global market access and freedom of choice for buyers.

Correct Answer: False

Solution:

Despite advanced security measures, online transactions are prone to various risks such as transaction risks, data storage and transmission risks, and threats to intellectual property and privacy.

Correct Answer: True

Solution:

E-commerce enables organizations to offer customized products/services at lower costs, similar to mass-produced items.

Correct Answer: False

Solution:

E-business and outsourcing are not new forms of business; they are new ways of conducting existing business activities.

Correct Answer: False

Solution:

E-business has enabled mass customisation at lower costs, previously associated only with mass-produced items.

Correct Answer: True

Solution:

C2C commerce allows consumers to sell goods like used books or clothes, which lack a formal market mechanism.

Correct Answer: True

Solution:

E-business involves setting up a firm's location on the world wide web, which requires resources beyond traditional business needs.

Correct Answer: True

Solution:

Online transactions are prone to risks such as data interception and unauthorized access, making security a crucial concern.

Correct Answer: False

Solution:

Digital cash exists only in cyberspace and does not have physical properties, though it represents real currency in electronic format.

Correct Answer: True

Solution:

Cryptography involves encrypting information into 'cyphertext' to protect it, which can only be decrypted by someone with the secret key.

Correct Answer: True

Solution:

E-business transforms business processes from being sequential to simultaneous, thereby reducing the cycle time from demand origin to fulfillment.

Correct Answer: False

Solution:

Online shopping can be done at any time, including late hours, as it does not depend on the physical presence of stores.

Correct Answer: True

Solution:

The excerpt describes C2C commerce as business originating from the consumer and ending with the consumer, exemplified by platforms like eBay.

Correct Answer: True

Solution:

Computer viruses can range in severity from minor annoyances to complete destruction of a system, as indicated by Level-4 viruses.

Correct Answer: True

Solution:

E-business allows sellers to access global markets and buyers to choose products from around the world, significantly contributing to globalisation.

Emerging Modes of Business

AI Learning Assistant

Summary

Chapter 5: Emerging Modes of Business

Summary

Learning Objectives

Key Differences Between Traditional Business and e-Business

Common Mistakes & Exam Tips

Learning Objectives

Detailed Notes

Chapter 5: Emerging Modes of Business

Learning Objectives

Introduction

E-Business vs Traditional Business

Comparison Table

Applications of E-Business

Security and Safety of e-Transactions

Types of Risks

Conclusion

Exam Tips & Common Mistakes

Common Mistakes and Exam Tips

Common Pitfalls

Exam Tips

Practice & Assessment

Multiple Choice Questions

Q1.What is the primary risk associated with data storage and transmission in e-business?

Correct Answer: B

Q2.In the context of e-business, what does 'e-procurement' involve?

Correct Answer: B

Q3.Which of the following is a limitation of e-business?

Correct Answer: B

Q4.In e-business, what is the role of Secure Sockets Layer (SSL) technology?

Correct Answer: C

Q5.Which of the following is a major security concern in e-business?

Correct Answer: B

Q6.Which of the following is NOT a characteristic of e-business?

Correct Answer: A

Q7.What is a significant limitation of e-business mentioned in the excerpts?

Correct Answer: C

Q8.What role does cryptography play in e-business?

Correct Answer: C

Q9.Which of the following is a primary reason for the growing trend of outsourcing in business?

Correct Answer: A

Q10.Which of the following best describes the concept of 'digital cash'?

Correct Answer: B

Q11.Which of the following is a significant limitation of e-business?

Correct Answer: C

Q12.What is a major risk associated with online transactions in e-business?

Correct Answer: B

Q13.What is a major concern for businesses engaging in e-commerce?

Correct Answer: B

Q14.In e-business, what is the primary role of 'cookies'?

Correct Answer: B

Q15.What is one of the major limitations of e-business mentioned in the text?

Correct Answer: C

Q16.Which of the following is an example of a C2C commerce activity?

Correct Answer: B

Q17.What does the acronym 'VIRUS' stand for in the context of computer security?

Correct Answer: A

Q18.Which of the following is NOT a benefit of e-business?

Correct Answer: A

Q19.Which of the following is NOT a component required for the initiation of e-business?

Correct Answer: A

Q20.Which of the following is an example of e-delivery?

Correct Answer: C

Q21.In the context of e-business, what is the function of cryptography?

Correct Answer: B

Q22.In e-business, which of the following is a major risk associated with data storage and transmission?

Correct Answer: C

Q23.Which of the following best describes the concept of 'digital cash' in e-business?

Correct Answer: B

Q24.Which of the following is a characteristic of C2C commerce?

Correct Answer: B

Q25.What is the full form of the acronym 'VIRUS' as mentioned in the context of computer security?

Correct Answer: A

Q26.Which of the following is a risk associated with online transactions?

Correct Answer: A

Q27.Which of the following technologies is used to protect credit card details during online transactions?

Correct Answer: A

Q28.Which type of commerce involves transactions between consumers?