Regular practice with AP Inter 1st Year Commerce Study Material Chapter 9 Emerging Trends in Business Questions and Answers helps students stay prepared for examinations.
AP Inter 1st Year Commerce 9th Lesson Emerging Trends in Business Questions and Answers
Fill in the Blanks
Question 1.
The Integration of business tools based on ICT to improve the functioning called ____________
Answer:
e-business
Question 2.
The term e-business was first used by ____________ in the year 1997.
Answer:
IBM
Question 3.
ICT full form is ____________ and communication Technology.
Answer:
Information
Question 4.
COD means ____________ on delivery.
Answer:
Cash
Question 5.
P2P means peer to ____________ payments.
Answer:
Peer
Question 6.
Demonetisation initiative took place in the year ____________
Answer:
2016
Question 7.
E-business used web based technology to improve relationship with ____________
Answer:
Customers
Question 8.
Transacting or facilitating business through internet is called ____________
Answer:
e-Commerce
Question 9.
_____________ is used for buying and selling stocks in stock markets.
Answer:
E-trading
Question 10.
____________ provides a platform for buying and selling of goods without having any geographical barriers.
Answer:
E-marketing
Question 11.
The turning point for speed up of online transactions in India with ____________ in 2016.
Answer:
Demonetisation
Question 12.
Online transaction stages are pre-purchase and ____________ stages.
Answer:
Delivery
Question 13.
Order issue is one type of ____________ risk.
Answer:
Transaction
Question 14.
Virus and ____________ come under the data storage and transmission risks.
Answer:
Hacking
Very Short Answer Questions
Question 1.
Explain E-Banking.
Answer:
E-Banking : Electronic banking is one of the most successful online businesses. E-Banking allows customers to access their accounts and execute orders through the use of website. Online banking allows the customers to get their money from an Automated Teller Machine. (ATM), instead of walking up to the cash desk in the bank, can view their accounts, transfer funds, and pay bills.
Ex : Net Banking.
Question 2.
E-Business.
Answer:
E-business : The term “E-Business” refers to the integration of business tools based on ICT to improve the functioning of the company. The term e-commerce, which is frequently mixed up with e-business, covers one aspect of e-business, i.e. the use of online support for building relationships between a company and its clients.
In term ‘e-business’ was first used by IBM in 1997, which defined it as “the transformation of key business processes through the use of interenet technologies.”
Question 3.
E-Commerce.
Answer:
E-Commerce : Transacting or facilitating business through internet is called e-commerce. E- commerce is short for “Electronic commerce.”
Popular examples of e-commerce revolve around buying and selling online. But the e- commerce universe contains other types of activities as well. Any form of business transaction conducted electronically is e-commerce.
Question 4.
E-Trading.
Answer:
E-Trading : E-Trading is also known as “online trading” or e-broking. It is used for buying and selling stocks in stock exchanges.
Question 5.
Crypto currency transaction.
Answer:
Crypto currency transaction : Digital currencies like Bitcoin, Ethereum and others are increasingly being use for online transactions.
Question 6.
Digital cash.
Answer:
Digital cash : Digital cash is an electronic formal of money used only online. First, we deposit real money into a Bank account. The bank provides software that lets us access and spend this digital cash online. We can then use it to buy products or services over the internet.
Question 7.
E-auctioning.
Answer:
E-auctioning : The internet enables people to participate in the auction without sacrificing their time. In e-auctioning the people, who want to participate in the auction, visit the website with a click and go through the details of goods offered or kept in auction on the concerned web pages and participate in an auction.
Ex : Bank Auctions tenders.
Question 8.
E-Marketing.
Answer:
E-Marketing : Electronic marketing provides a worldwide platform for buying and selling goods without having any geographical barriers. The internet allows companies to react to individual customer demands immediately without any loss of time. It does not mater where the customer is located. Bye e-mails etc.
Question 9.
B2B.
Answer:
B2B : E-Business can be divided into the following are as
- Within the organisation
- Business-to-Business (B2B) dealings
- Business-to-Customer (B2C) transactions.
- Customer-to-customer and
- Customer-to-Business
2) Business-to-Business (B2B) dealings : B2B E-Business refers to an exchange of prod-ucts & services one business & another.
Question 10.
B2C.
Answer:
B2C : E-Business can be divided into the following areas: (c) Business-to-customer (B2C): B2C E-Business refers to an exchange of products & services from a business to a customer.
Question 11.
Online Transactions.
Answer:
Online Transactions: An online transaction refers to any financial or non-financial activity that takes place over the internet. The financial transctions include online banking, bill payments, electronic fund transfers, and digital wallet transactions. The non-financial transactions include online shopping, purchasing digital products, and participating in online forums.
Question 12.
Credit card.
Answer:
Credit card : Offer referred to as plastic money, these cards are the most popular way to pay online. Allow us to buy now and pay later. The bank pays the seller on our behalf and we repay the bank later, after in installments.
Question 13.
Debit card.
Answer:
Debit card : often referred to as plastic money, these cards are the most popular way to pay online. Allow us to make purchases using the money in our bank account. The amount is instantly deducted from our account at the time of purchase.
Question 14.
P2P.
Answer:
Peer-to-Peer (P2P) Payments : Allow individuals to send money directly to one another.
Question 15.
C2C.
Answer:
C2C transactions are being facilitated by websites like Quicker, olx, where customers offer their products online, to be bought by other customers.
Question 16.
C2B.
Answer:
C2B transactions involve provision of project work by customers on internet to needy companies.
Short Answer Questions
Question 1.
What are the benefits of e-business to organization?
Answer:
Benefits of E-Business : E-business has many advantages, which can be broadly classified into the following categories.
A) Benefits to customer :
- Shopping at ease : E-business enables customers to shop or do other transactions 24 hours a day, year round from almost any location.
- Wide choice : Customers will have more choices or more alternative products and ser-vices.
- Price Savings : E-business provides customers with less expensive products and services by allowing them to shop in multiple places and conduct quick comparisons. It facilitates competition, resulting in substantial discounts.
- Exchange of Information : E-business allows customers to interact with other customers and exchange their options and experiences on purchased products.
B) Benefits to the Organization :
- Reach Beyond Boundaries : Expands the market place to National and International markets.
- Cost Savings : Reduce the cost of creating, processing, distributing, storing and retriev¬ing information. Allows reduced inventories and overheads.
- Competitive Benefits : The adjusted processing time allows for the customization of products and service to achieve competitive advantages.
- Earlier capital collection : Reduces the time between the outlay of capital and the receipt of products or services.
C) Benefits to Society :
- Environmental benefits : Enable more individuals to work at home, and do less travelling for shopping, resulting in less traffic on the roads, and lower air polution.
- Public welfare : Allows some merchadise to be sold at lower prices benefiting the poor.
- Availability of products : Enables people in third-world countries and rural areas to enjoy products and services which otherwise are not available to them.
Question 2.
What are the benefits of e-business to customers?
Answer:
E-business to customers : The following are the benefits of E-Business to customers.
- Shopping at ease: E-business enables customers to shop or do other transactions 24 hours a day, year round from almost any location.
- Wide choice : Customers will have more choices or more alternative products and services.
- Price savings : E-business provides customers with less expensive products and services by allowing them to shop in multiple places and conduct quick comparisons. It facilitates competition, resulting in substantial discounts.
- Exchange of Information : E-Business allows customers to interact with other customers and exchange their opinions and experiences on purchased products.
Question 3.
What are the benefits of e-business to the society?
Answer:
E-Business to the society : The following are the benefits of E-Business to the society.
- Environmental benefits : Enable more individuals to work at home, and do less travelling for shopping, resulting in less traffic on the roads, and lower air pollution.
- Public welfare : Allows some merchandise to be sold at lower prices benefitting the poor.
- Availability of Products : Enables people in third-world countries and rural areas to enjoy products and services which otherwise are not available to them.
Question 4.
What are the different types of online transactions?
Answer:
Types of Online Transactions :
- E-commerce Transactions : The most common type of online transaction is e-commerce which involves the purchase of physical goods or services over the internet.
- Peer-to Peer(P2P) Payments : Allow individuals to send money directly to one another.
- Bank Transfers : Online banking allows individuals and business to transfer money between accounts electronically.
- Crypto currency Transactions : Digital currencies like Bitcoin, Ethereum and other are increasingly being used for online transactions.
- Digital Subscriptions and content Payments : The purchase of digital subscriptions and content has become more popular in recent times. Streaming services like Aha, Prime and Hotstar as well as educational content purchases, like Byjus and non-academic courses, also involve online transactions.
- Mobile Payments : With the advent of smart phones, mobile payment systems such as UPI, Phonepe and payTM, allow consumers to make purchases in store and online with just a tap of their phones.
Question 5.
What is the process of online transactions?
Answer:
1) Registration : Before shopping online, we need to register with the website. This involves creating an account by filling out a form. There is a need to set up a password to secure our account and shopping details. This ensures that no one else can log in and shop using our account.
2) Placing an Order : We can browse the website and add items to a “shopping cart” which keeps track of the items we want to buy. Just like in physical store, we can add or remove items from the cart. Once we are ready to buy, we can proceed to checkout and choose our preferred payment method.
3) Payment: When we shop online, there are several ways to pay for purchases:
- Cash-on-Delivery (COD) : Payment is made after the goods are delivered to our home.
- Cheque : We pay by the cheque, and the seller may arrange for it to be picked up and once the cheque is cleared, the goods will be delivered.
- Net Banking Transfer : Banks offer services like IMPS, NEFT, and RTGS that allow us to transfer money online directly to the seller’s account. Once the payment is received, the seller ships order.
- Credit cards : Often referred to as plastic money, these cards are the most popular way to pay online.
- Credit cards : Allow us to buy now and pay later. The bank pays the seller on our
behalf and we repay the bank later, after in installments. - Debit cards : Allow us to make purchases using the money in our bank account. The amount is instantly deducted from our account at the time of purchase. For secure transactions, online sellers use systems like Secure Sockets Layer (SSL) certificates to protect our card details.
- Credit cards : Allow us to buy now and pay later. The bank pays the seller on our
- Digital cash : Cash in an electronic form of money used only online. First, we de-posit real money into a bank account. The bank provides software that let us access and spend this digital cash online. We can then use it to buy protects or services over the internet.
Question 6.
What are the different ways for payment mechanism for online transactions?
Answer:
Different ways for payment mechanism for online transaction :
1) Credit and debit cards : Often referred to as plastic money, these cards are the most popular way to pay online.
- Credit cards : Allow us to buy now and pay later. The bank pays the seller on our behalf and we repay the bank later, after in installments.
- Debit cards : Allow us to make purchases using the money in our bank account. The amount is instantly deducted from our account at the time of purchase.
2) Digital cash : Digtal cash is an electronic form of money used only online. First, we deposit real money into a bank account. The bank provides software that lets us access and spend this digital cash online. We can then use it to buy products or services over the internet.
- Bank Transfers : Online banking allows individuals and businesses to transfer money between accounts electronically.
- Cash on Delivery : Payment is made after the goods are delivered to our home. Crypto currency Transactions : Digital currencies like Bitcoin,
- Ethereum and other are increasingly being used for online transactions.
- Prepaid cards : These cards are loaded with a specific amount of money and can be used for online transactions.
Question 7.
What are the risks faced while involved in an E-business transaction?
Answer:
Risk Faced while involved in an E-Business Transaction :
- Risk of the information being unauthorizedly altered while travelling across the internet.
- Risks related to confidentiality of personal information and banking information like credit card details and passwords etc.
- Risks related to the legal enforceability of transactions entered into through e-commerce are of major concern as there will be no physical proof of such transactions.
- Risks of failure of electronic communications, which may result in the closure of a business.
- Risks to the management in controlling and cleaning the E-commerce, transactions and in selecting the best suited communication techniques to transact.
- Risks related to technology, such as viruses and backing.
Question 8.
Explain the Scope of E-business.
Answer:
Scope of e-business : E-business can be divided into following are as :
- Within the organisation
- Business-to-Business (B2B) dealings
- Business-to-Customer (B2C) transactions.
- Customer-to-customer and
- Customer-to-Business
- B2B E-business refers to an exchange of products & services one business & another.
- B2C E-business refers to an exchange of products & services from a business to a customer.
- C2C – transactions are being facilitated by websites like Quicker, olx, where customers after their products online, to be bought by other customers.
- C2B – transactions involve provision of project work by customers on internet to needy companies.
These scope of e-business is extended to the various field of the business segments. They can be explained under :
- E-commerce : Transacting or facilitating business through internet is called e-commerce. E-commerce is short for “Electronic commerce.”
- E-auctioning : The internet enables people to participate in the auction without sacrificing their time. In e-auctioning the people, who want to participate in the auction, visit the website with a click and go through the details.
- E-Banking : Electronic Banking is one of the most successful online business. E-Banking allow customers to access their accounts and execute orders through the use of website. Online Banking allows the customers to get their money from an Automated Teller Machine (ATM).
- E-marketing : Electronic marketing provides a worldwide platform for buying and selling goods without having any geographical barriers. The internet allows companies to react to individual customer demands immediately without any loss of time. It does not matter where the customer is located. By e-mails etc.
- E-Trading : E-trading is also known as “online trading” or e-broking. It is used for buying and selling stocks in stock exchanges.
Question 9.
Explain the characteristics of online Transactions.
Answer:
Characteristics of online Transactions :
- Exchange : Online transactions involve the exchange of money or goods and services between two or more parties using he internet.
- Convenience : Online transactions offer ease and speed, eliminating the need for physical presence or paper work.
- Security : Online transactions are considered more secure provided necessary precautions are taken.
- Payment : Online transactions use various payment methods such as credit cards, debit cards, digital wallets, bank transfer etc.
- Digital platforms : Online transactions are executed through electronic devices like computers, smartphones or tablets.
- Real-time Processing : Online transactions are processed almost instantaneously.
- Wide Accessibility : Online transactions are conducted from anywhere with an internet connection.
- Coverage : Online transactions include both financial and non-financial transactions.
Question 10.
Discuss the Security and safety of online transactions.
Answer:
Security & Safety of online transactions : Ensuring the safety & security of these transactions is a key concern in e-business. The risks can be grouped into three main categories.
1) Transaction Risks : Online transactions may face the following challenges:
- Order Issue : The seller may deny receiving the order, or the customer may claim they never placed it. This is known as “Order taking /giving default.”
- Delivery Problems : Goods may not be delivered may be sent to the wrong address, or the wrong items may arrive. This is known as “delivery default.”
- Payment Disputes : The seller may not receive payment even though the customer claims to have paid. This is referred to as “Payment default.”
2) Data Storage and Transmission Risks : Data, whether stored in systems or transmitted online, can be vulnerable to theft or tampering. Here are same common risks.
- Viruses : Malicious programs, called viruses, can disrupt system functioning or damage files. Anti-virus software can help protect against these threats if kept regularly updated.
- Hacking : Unauthorized access to systems can result in stolen or altered information.
3) Threats to Intellectual Property and Privacy : Once data is shared online, it’s difficult to keep it private. Risks include.
- Intellectual Proprety Theft : Information shared on the internet may be copied without permission.
- Privacy Invasion : Personal information shared during transactions may be sold or misused, leading to unwanted spam and junk e mails.
By understanding these risks and using tools like encryption, anti-virus programs, and trusted e-commerce platforms, we can make online transactions safer and more secure.
Long Answer Questions
Question 1.
What are the benefits of E-business?
E-Business has many advantages, which can be broadly classified into the following categories :
A) Benefits to Customer :
- Shopping at ease: E-business en&bles customers to shop or do other transactions 24 hours a day, year round from almost any location.
- Wide choice: customers will have more choices or more alternative products and ser-vices.
- Price savings: E-business provides customers with less expensive products and services by allowing them to shop in multiple places and conduct quick comparisons. It facilitates competition, resulting in substantial discounts.
- Exchange of Information: E-business allows customers to interact with other customers and exchange their opinions and experiences on purchased products.
B) Benefits to the organisation :
- Reach beyond boundaries : Expands the market place to national and international markets.
- Cost savings : Reduces the cost of creating, processing, distributing, storing and retriev¬ing information. Allows reduced inventories and overheads.
- Competitive benefits : The adjusted processing time allows for the customization of products and services to achieve competitive advantages.
- Earlier capital collection : Reduces the time between the outlay of capital and the receipt of products or services.
C) Benefits to Society :
- Environmental benefits: Enable more individuals to work at home, and do less travelling for shopping, resulting in less traffic on the roads, and lower air pollution.
- Public welfare: Allows some merchandise to be sold at lower prices benefiting the poor.
- Availability of Products : Enables people in third-world countries and rural areas to enjoy products and services which otherwise are not available to them.
Question 2.
What is E-business and explain its scope.
Answer:
Meaning : The term “E-business” refers to the integration of business tools based on 1CT to improve the functioning of the company. The term e-commerce, which is frequently mixed up with e-business, covers one aspect of e-business, i.e. the use of online support for building relationships between a company and its clients.
Definition : The term ‘e-business’ was first used by IBM in 1997, which defined it as the transformation of key business processes through the use of internet technologies.
Scope of E-Business : E-business can be divided into the following are as
- Within the organisation
- Business-to-Business (B2B) dealings
- Business-to-Customer (B2C) transactions.
- Customer-to-customer and
- Customer-to-Business
- B2B E-busines refers to an exchange of products & services one business & another.
- B2C E-business refers to an exchange of products & services from a business to a cus¬tomer.
- C2C – transactions are being facilitated by websites like Quicker, olx, where customers offer their products online, to be bought by other customers.
- C2B – transactions involve provision of project work by customers on internet to needy companies.
These C2C & C2B transactions are a result of recent advancements in technology.
Most of us are aware of buying products on time through some sites like Flipkart, Jabong & Amazon. Almost everything from gym equipment to laptops, apparel to jewelry, is available online in this age of e-commerce. Even people are also buying services online. Business con-sultants, lawyers and doctors are offering their services/advice to their potential clients via internet.
Electronic business is a superset of business cases. E-commerce is one of the aspects of e-business. Other important aspects of e-business that are successfully carried out through the internet, include e-auctioning, e-directories, e-engineering, e-franchising, e-gambling, e-learning, e-mailing, e-marketing, e-operational resource management e-supply and e-trading. The scope of e-business is discussed in terms of the following broad elements viz.
- E-commerce : Transacting or facilitating business through internet is called e-commerce. E-commerce is short for “Electronic commerce.”
- E-Auctioning : The internet enables in the auction without sacrificing their time. In e- auctioning the people, who want to participate in the auction, visit the website with a click and go through the details.
- E-Banking : Electronic banking is one of the most successful online businesses. E-Banking allows customers to access their accounts and execute orders through the use of website online banking allow the customers to get their money from an Automated Teller Machine (ATM).
- E-marketing : Electronic marketing provides a worldwide platform for buying and selling goods without having any geographical barriers. The internet allows companies to react to individual customer demands immediately without any loss of time. It does not matter where the customer is located. By e-mails etc.
- E-Trading : E-trading is also known as ‘online trading’ or e-broking. It is used for buying and selling stocks in stock-exchanges.
Check Your Knowledge
I. Fill in the blanks for the following questions :
Question 1.
Which term is wider e-business or e-commerce ____________
Answer:
E-business
Question 2.
E-business is defined as the conduct industry, trade and commerce using the ____________
Answer:
Internet
Question 3.
E-business includes ____________
Answer:
E-commerce. Human Resouces management, Inventory management.
Question 4.
In a B2B transaction both the parties involved are ____________
Answer:
Business Firms
Question 5.
What is the fullform of EDI ____________
Answer:
Electronic Data Inter change
Question 6.
In a B2C business transaction which parties are involved ____________
Answer:
Both business & customer
Question 7.
One of the benefits of a B2C business transaction is ____________
Answer:
Business can be in touch with their customers 24 × 7
Question 8.
Internet is truly without boundaries which benefit of e-business is highlighted in this statements? ____________
Answer:
Global Reach
Question 9.
Withdrawal of money from ATM is an example of ____________ type of transaction.
Answer:
B2C
Question 10.
In an intra-B transaction parties involved are ____________
Answer:
Within a business firm
Question 11.
Chirag decided to sell his old books to his friend’s brother, Ashish. This is a ____________ transaction.
Answer:
C2C
Question 12.
Service provided by e-bay is an examples of ____________
Answer:
C2C
Question 13.
Which business is easy to setup e-business or traditional business ____________
Answer:
E-business
Question 14.
A firm’s electronic transactions and net works are extending into ____________ directions.
Answer:
3
Question 15.
What do you mean by the term B2B transaction ? ____________
Answer:
Business-to-Business
Question 16.
Which of the following is a benefit of e-business ? ____________
Answer:
Ease of Formation
Question 17.
The payment mechanism typical to e-business is ____________
Answer:
Credit card & Debit card
Question 18.
Tradition 3RS refers to ____________
Answer:
Reading, writing and arithmetic
II. State whether the statements are True or False.
Question 1.
Risks related to technology, such as viruses and hacking. (True/False)
Answer:
True
Question 2.
Public welfare allows some merchandise to be sold at lower prices, benefiting the high class people. (True/False)
Answer:
True
Question 3.
Delivery stages is when the goods or services are delivered to the buyer. (True/False)
Answer:
False
Question 4.
Before shopping online, we need to register with the website. (True/False)
Answer:
False
Question 5.
Payment is made before the goods are delivered to our home.(True/False)
Answer:
True
Question 6.
E-Trading is also known as “online Trading.” (True/False)
Answer:
False
Question 7.
E-Business can be divided into four areas. (True/False)
Answer:
True
Question 8.
ICT stands for Internet Communication Technology. (True/False)
Answer:
False
Question 9.
Transactions mainly involve 4 stages. (True/False)
Answer:
True
Question 10.
SSL stands for Secure Sockets Loss.(True/False)
Answer:
False
Question 11.
P2P means Peer-to-Paid Payments. (True/False)
Answer:
True
Student Activity
State whether the statements are True or False.
Question 1.
The transformation of key business processes through the use of internet technology is called e-business. (True/False)
Answer:
False
Question 2.
The concept of e-business is not flexible. (True/False)
Answer:
True
Question 3.
E-business is one aspect of e-commerce. (True/False)
Answer:
False
Question 4.
Information shared on the internet may be copied without permission, which is called in intellectual property theft. (True/False)
Answer:
False
Question 5.
Hacking is authorised access to a system where information can be stored or altered. (True/False)
Answer:
False
Question 6.
Credit cards and debit cards are also called plastic money. (True/False)
Answer:
False
Question 7.
The turning point for online transactions in India came with the demonetization initiative in 2016. (True/False)
Answer:
False
Question 8.
E-commerce is short form of economical commerce. (True/False)
Answer:
False
Question 9.
E-auctioning is participating in an auction personally. (True/Fake)
Answer:
False
Question 10.
E-Banking allows customers to access their accounts through the use of a website. (True/False)
Answer:
False
Question 11.
E-Trading is not useful for buying and selling stocks and through stock exchanges. (True/False)
Answer:
False
Question 12.
In e-business transactions there is a risk of the information being unauthorizedly altered (True/False)
Answer:
False