MP Board Class 11th Business Studies Important Questions Chapter 5 Emerging Modes of Business
Emerging Modes of Business Important Questions
Emerging Modes of Business Objective Type Questions
Choose the correct answer:
(a) Restricts only to tire contracting out of Information Technology Enabled Services (ITES)
(b) Restricts only to the contracting out of non – core business processes
(c) Includes contracting out of manufacturing and R and D as well as service processes both core and non – core but restricts only to domestic territory
(d) Includes off – shoring.
(d) Includes off – shoring.
A call centre handles –
(a) Only in – bound voice based business
(b) Onlyout – boundvoicebasedbusiness
(c) Both voice based and non – voice based business
(d) Both customer facing and back – end business.
(a) Only in – bound voice based business
It is not an application of e – business –
(a) Online bidding
(b) Online procurement
(c) Online trading
(d) Contract R and D.
(a) Online bidding
The payment mechanism typical to e – business –
(a) Cash on Delivery (CoD)
(c) Credit and Debit Cards
(d) E – cash.
(c) Credit and Debit Cards
E – commerce does not include –
(a) A business’s interactions with its suppliers
(b) A business’s interactions with its customers
(c) Interactions among the various departments within the business
(d) Interactions among the geographically dispersed units of the business.
(c) Interactions among the various departments within the business
Fill in the blanks –
- E – commerce is also known as ……………..
- By E – commerce we can do bussiness by ……………..
- In E – commerce …………….. informations are exchanged.
- In E – commerce payment is done by ……………..
- Online business is called ……………..
- For the success of E – commerce we need effective …………….. system.
- Company sending the goods through online to its customer is called ……………..
- Call center supports ……………..
- Transcription service is a type of ……………..
- In E – business payment is done by ……………..
- Online bussiness
- E – commerce
- External source
- Credit and Debit card.
Give answer in one word/sentence:
What is E in E – commerce?
E stands for electronic.
Write the names of two normal risks which is present in e – commerce.
- Brand Hijacking
Write full form of B.P.O.?
Business Process Outsourcing.
Write the name of the service in which one firm take the help of other firm for getting their work done?
What is E – business?
When all industrial and commercial activities are done through the computer network then it is called as E-business.
Write two differences between traditional and e – business.
- It is hard to set-up traditional business and easy to start e-business.
- Physical presence is needed in traditional business but in e-business physical existence is not required.
Write two advantages of e – commerce?
- E – commerce make distribution simple and
- All the doubts are cleared immediately.
Write two resources required for e – commerce.
- Computer system and
- Internet connection.
Write two limitations of e – commerce?
The two limitations of e – commerce are:
- Less personal contact and
- Delay in delivery.
Write three levels required for doing e – business or online business.
- Payment system.
What do you mean by hacking?
Illegal entry or surfing into website is called as hacking. Sometime hackers destroy the important information and facts.
What is storage risk?
When due to any joke or for humiliation purpose, main information is stolen then it is called as storage risk.
How many normal storage risk are there? Name them.
There are two Normal Storage Risks. They are:
What do you mean by courier sendees?
When the private firms provide the postal services to carry the letters and parcels then it is called as courier services.
Write two limitations of Outsourcing of Services.
- Lack of Secrecy
- Lack of Skill of thinking.
Write different services of outsourcing.
Following are types of different services of outsourcing:
- Financial services
- Advertisement services
- Courier services
- Customer help services.
Write advantages of outsourcing of business.
- Focus on internal skill
- Economy in cost.
Into how many directions the transactions of e – business and its activities can be extended? Write those directions.
E – business and its activities can be extended into four directions:
- B – 2B commerce
- B – 2C commerce
- C – 2C commerce
- Intra – B commerce.
Write one difference between e-business and e – commerce?
In e – business,industry, trade and commerce is included but in e – commerce only purchase and sale of the goods are included.
Write two names of two methods of stopping crime in e – commerce?
The two methods are:
- Special Crime Cell
- Digital Signature.
What is Digital signature?
Digital signature is one of method certifying by the certification officer by issuing coded digital certificate, which helps in recognition of the sender.
Write the resources which are required for the successful operation of the e – business?
- Computer hardware
- Technical staff
- Digital payment technology
- Properly designed website
- Tele communication facilities.
Can the delivery of the car can be received immediately on the computer?
Give some examples of items whose delivery can be taken immediately on the computer?
- Computer software
- Tickets of flights
- Hotel reservation
- Information of tape, CD, etc.
What is the name given to delivery of goods immediately on the computer?
What is EFT?
EFT stands for Electronic Fund Transfer in which money can be transferred by the code given by the bank of the credit card number.
What do you mean by documents? Is it full safe? Give reason for your answer.
Document is related to the invoice, warranty card, payment receipts, etc. They are fully safe as they are received by means of the internet.
What is important to deal in the e – business ?
It is very important to know the address of the website.
Emerging Modes of Business Very Short Answer Type Questions
The process of availing various kinds of socialized services from agents external to one’s own organization, at economical rates is called as outsourcing.
What advancements in the business field has been made in order to run business skillfully?
Following changes have taken place:
Write difference between E – business and E – commerce?
Normally E – business and E – commerce both the words seems to Synonyms but E – business word is very wide in which not only E – commerce is included but also function of business such as production, distribution, personal management etc., are also included. Transactions done by different – different firms are also included.
What is Cryptography?
Cryptography is that process of saving information in which the data is converted to cyber text.
What do you mean by website?
Website is related tb the world wide web. In short the position of the firm on the world wide web is called as website. Website is not any geographical position but it is the matter which only visible online which the firm is willing to show others.
What is KPO?
Knowledge Process Outsourcing or KPO is one way of doing work by transferring work to others belonging to the same firm or the other firms. Generally, this work is done by high value skilled employees.
Difference between KPO and Production Outsourcing?
KPO is done by more skilled employees as compared to the work done by the Production Outsourcing.
Write two functions of KPO firms.
The two functions of KPO firms are:
- They provide self – process specialization and
- They take lower level decisions of their own.
Write the name of process outsourcing which is continuity of BPO and have more business complexities.
Write two characteristics of KPO.
The two characteristics of KPO are:
- It is knowledge related business process or It is one of the continuity of BPO.
- It required highly skilled employees or workers.
What is central theme of KPO?
The main central theme of the KPO is to create price for the customers by having business specialization instead of central process specialization.
What are the services included in KPO?
Following services are included in KPO:
- Investment Research Services
- Business Research Services
- Data Analysis
- Market Research Services
- Valuation and Firm decision
- Legal Process Outsourcing
- Patent Research Services
- Business Operation Support and Management
- Editor Process Outsourcing.
How does outsourcing represent a new mode of business?
Outsourcing represents a new mode of business and it is a departure from the traditional thinking of self – sufficiency in business. It refers to a long – term contracting out of business activities to captive or third party specialists with a view to benefitting from their experience, expertise, efficiency and even investment. Generally, the non – core business activities are outsourced but of late even some of the core activities have started being outsourced.
Outsourcing comprises four key segments:
- Contract manufacturing
- Contract research
- Contract sales and
Global competitive pressures for higher quality products at lower costs, demanding customers and emerging technologies have induced a retook at business processes and hence, resulted in outsourcing as a new mode of business which is now being resorted to not out of compulsion but out of choice.
Write the utility of the smart card?
Following is the utility of the smart card:
- For Banking and Retail
- As an Electronic purse
- For Health Care
- Identity verification.
Emerging Modes of Business Short Answer Type Questions
State any three differences between E – business and Traditional business.
Differences between Traditional business and E – business:
Describe briefly any two applications of E – business.
Two applications of E – business:
1. E – Procurement:
It involves internet – based sales transactions between business firms, including “reverse auctions” that facilitate online trade between a single business purchaser and many sellers and, digital market places that facilitate online trading between multiple buyers and sellers.
2. E – Communication / E – Promotion:
It includes e – mails, publication of online catalogues displaying images of goods, advertisement through banners, pop – ups, opinion polls and customer surveys, etc. Meetings and conferences may be held by the means of video conferencing.
How outsourcing is representing the development of new technique of business?
Due to outsourcing business have got help in touching the new horizons because under it the businessmen keep some work with them and remaining work they transfer to these who are having specialization. This makes those work done on time at economical rate and also increase the employment opportunities in the society.
Wbat is B2B?
Or, Write the risks which are there in data storing and transmission in E – business.
There are lots of risks whether data is stored inside the computer or the way of its transmission. Important informations are stolen by the hackers only in order to destroy them or due to humiliation purpose.
Explain the areas of e – business.
Under e – business not only the functions like production, distribution, personnel management comes but also management works like planning, organizing and controlling is also done by the medium of computerized system. Following are also included in the e – business:
1. B2B Commerce:
Under this process of e – business both the firms which participate are included. Business firms cannot do all the work of its own. They also need the subsidiary firms also like, scooter manufacturing company requires help of so many firms as it cannot produce all the components by its own and if doing so can make their manufacturing cost very high. Hence, under this category the work is selected and given to secondary firm for their completion.
2. B2C Commerce:
Under it the relation between business and the customers are kept. This method is useful when purchasing is done by going to the unknown shopkeepers. Customers can find the information online and can inform to the firm about their requirement and then they can get those goods and services on their own way as per their taste.
3. Intra B Commerce:
When all the units of the firm are electronically connected
with each other then it is called as Intra B commerce. By this method different departments like sales, production etc., get information of other departments online and hence there is less possibility of mistakes at all the levels. .
Explain E – business.
E – business is the electronical method of doing business. This system makes the firm to make available any commodity at any place at any time to its customers; Instead of. purchasing any commodity from the unknown seller the purchaser send the required amount directly to the concerned seller. Seller will be keeping that amount with him up till that time until unless the goods have not been sent and was accepted by the purchaser e.g„ if any person got blocked in traffic then he can phone to another person in order to guide to him not to get blocked in the traffic.
What do you understand by Virus?
Virus is a kind of program which goes on circulating to the main program frequently. The effect of the virus can be seen as follows:
Level – 1
virus leads to normal affecting to the screen.
Level – 2
virus goes on affecting the work process.
Level – 3
virus goes on affecting the targetted files and destroy them.
Level – 4
virus can destroy the whole system of the computer.
Antivirus programme should be established and should be run from time – to – time in order to save the files and disks from the attack of the virus.
Explain the various services of the E – business?
Following are the various services of the E-business:
1. E – procurement:
Under it purchase and sell goes on among the business firms. This makes the Business Firms have to work on properly as all die activities are done online.
2. E – bidding / E – auction:
In many of the purchasing websites the prices are presented automatically so that the bidding can be made. In it E-Auction is also included.
3. E – communication / E – promotion:
In this all the brochures are published which show the factors of the goods. Advertisement through banner, knowing of the consent, customer survey etc., meetings and the conferences can be held through the video conferencing.
4. E – delivery:
It includes the e – delivery of computer software, photos, videos, books and magazines (e – magazines) and multimedia materials through the electronic medium. In it through the electronic medium various other services like legal, financial and other services can also be availed.
What are the ethical concerns involved in outsourcing?
Outsourcing has raised certain ethical concerns which need to be considered. In search of cheap labour, manufacturing processes are being outsourced to developing countries where they use child labour/women in the factories and working conditions are unhygienic and even unsafe. The companies cannot do so in their developed home countries due to stringent laws forbidding use of child labour.
This raises the ethical concern whether this sort of cost cutting by using child labour justified. Similarly, there is a concern over the ethical aspect’of outsourcing the work to countries where gender based wage discrimination is done and hence women are paid lower wages.
What are the main problems in the outsourcing?
Following are the main problems in the outsourcing:
1. Lack of confidentiality:
Since the work is divided into different parts and is given to different person, the secrets of the work is also known to the others and advantage can be taken by the other competitor company.
2. Sweet shopping:
Under the outsourcing the workers and the labours are paid very less amount as a result of which they are exploited.
3. Ethical concerns:
The people of the under developed and the developing nations get ready to sell their services even at cheaper rates for earning money as a result they can be physically and mentally exploited.
Explain the advantages of the outsourcing?
Following are the advantages of the outsourcing:
1. Reduction in labour problems:
Due to outsourcing business has to appoint internal employees only which reduces labour problems.
2. Cost reduction:
Because of the outsourcing the work is transferred and is done by the other parties which reduces the cost. It is predicted that around 10 to 20% cost reduction is there.
3. Enhancement in production:
Outsourcing firms have good skill in their work which the other firms cannot have, and they do their work very skillfully. So due to outsourcing there is upgradation in the production capacity of the business undertaking.
What is E – business risk? Explain its different types.
Online business is totally different from the normal business and also it is having different types of business risk. Here risk means any such incidence which can cause financial, social or mental loss.
Types of E – business risk:
1. Transaction risk:
Online transaction have their own risk. They are of following types:
(i) Transactional order mistake:
The seller can refuse the customer that the customer has given order any time and similarily customer can also refuse regarding the order given by him.
(ii) Delivery mistake:
Delivery of wrong goods, delivery to the wrong address and similar kinds of problem arises.
(iii) Mistakes related to the payments:
Sometimes after delivery of the goods also payment is not received.
2. Data storage and transmission risk:
Data either stored in computer or is in transit, it has always risk. Many times important information is stolen by soihe antisocial elements for the purpose of humiliation or destroying. Virus hitting or hacking are some of the examples.
3. Risk of threat to intellectual property and privacy:
Internet is one of the open kind of place where if once the information is available then they lose their privacy andean be used by anyone. .
Emerging Modes of Business Long Answer Type Questions – I
Differentiate between B.P.O. and K.P.O.
Differences between B.P.O. and K.P.O:
Write the advantages of E-business.
Following are the advantages of the e – business:
1. Easy formation:
It is very easy to start e – business as compared to the traditional business which require lot of formalities to be completed. The advantages of internet is equally available to both the format of the business small and big.
Internet provides the facility of business 24 hours, 7 days and 365 days of the year. Hence the employees also get the flexibility to work at the different time and from the different place.
In the sale and purchase of the goods many other information is also required which is made available by the internet only at only click of the mouse. Many information and software, e – films, e – books and magazines can be delivered online. Here as per the demand the information can be made available speedily.
4. Global reach:
In the real sense internet reach is limitless. On one side it provides the seller a global reach and on the other hand it provides opportunity to the customer to select goods at the any place of the world.
5. Movement towards a paperless society:
Internet has reduced the use of the paper and also red tapism. Government department and various regulatory tribunals are also shifting towards the paperless society, under which all the information is made available online on the internet. In this context Information Technology Act 2000 is admirable.
Discuss the limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope ? Give reasons for your answer.
E – Business has its own limitations as discussed below:
1. Low personal touch:
e – Business lacks the warmth of interpersonal interactions and personal touch for satisfaction of customer. Thus, it is relatively less suitable mode of business for product categories requiring personal touch for convincing the customers such as garments, etc.
2. Incongruence between order taking/giving and order fulfillment speed:
In e – Business orders can be placed at the click of a mouse, but the physical delivery of the product takes time. Customers are sometimes not patient enough to bear with this Incongruence. At times the users even get frustrated due to technical reasons when web – sites take unusually longtime to open.
3. Need for Technology Capability and Competence of Parties to E – business:
E – Business requires the parties to be fairly familiar with computers and internet. The digital divide has thus limitedthe use of E – business.
4. Increased transaction:
Risk Internet transactions occur between cyber personalities and it is difficult to establish the identity of the parties or know the location from where the parties may be operating. E-business is also risky due to additional hazards of Impersonation and leakage of confidential information such as credit card details. Problems of ‘virus’ attacks and ‘hacking’ also pose security concerns in e – busipess.
5. Resistance to change:
The process of adjustment to new technology and new way of doing things causes stress and a sense of insecurity due to change. As a result, people may resist a change from traditional business to E – business.
Explain the advantages of smart card.
Followings are the advantages of smart card:
1. Multiple use device:
It is one smart card which do lot of big works like credit card, debit card, identification card, medical history, telephone directory etc. There is no need to keep separate document for each and everything.
2. Full security:
Smart card is tamper proof, hence the data stored in it cannot be manipulated. PIN is required for its use. User thumb impression and Id make it more safe to use. If any person try to use it illegally then the card reader makes the card blocked.
It can be carried to any place with ease as it very small in size and light.
4. More storage capacity:
Smart card can store large amount of data which is helpful at the time of its need.
5. Easy to use:
It can be carried anywhere and can be used easily and it is consumer friendly.
Differentiate between the Traditional business and E – business.
Why are e – business and outsourcing referred to as the emerging modes of business? Discuss the factors responsible for the growing importance of these trends.
E – Business and outsourcing are referred to as ‘emerging modes of business’ as these have brought about new changes in the way or manner in which business is conducted and it is believed that these trends are likely to continue. E – Business may be defined as the conduct of industry, trade and commerce using the computer networks.
E – Business covers a firm’s interactions with its customers and suppliers over the internet and also other electronically conducted business functions such as production, inventory management, product development, accounting and finance and human resource management.
The various factors responsible for the growing importance Of these trends are:
1. Business managers and thinkers keep evolving newer and better ways of doing things in an effort to improve the business processes.
2. Business firms have to strengthen their capabilities of creating utilities and delivering value to successfully meet the competitive pressures.
3. Consumers have become far more demanding than ever in terms of higher quality, lower prices, speedier deliveries and better customer care.
4. Business as an activity has to keep evolving by adopting new trends in order to benefit from emerging technologies.
Emerging Modes of Business Long Answer Type Questions – II
Elaborate the steps involved in online trading.
The following steps are involved in online trading:
1. Registration before online shopping one has to register with the online vendor by filling up a registration form. In this form one has to give a password to protect the account otherwise anyone can log in your account.
2. Placing an order in online transactions the order can be placed by picking and dropping the items in the shopping cart. Shopping cart is an online record of what you have picked up while browsing. After being sure of what you want to buy then check out from shopping cart and choose your payment option.
3. Payment through mechanism in an online purchase payment is made through
- Cash on delivery.
- Through cheque.
- Net banking transfer.
- Credit or Debit card.
- Digital cash.
(Note: If they ask steps in e – trading then following steps are to be mentioned)
- Opening bank account.
- Opening demat account with a depository participant.
- Opening online trading account with stock brokers.
- Trading software installation.
- Bidding and trading in securities.
Evaluate the need for outsourcing and discuss its limitations?
Global competitive pressures for higher quality products at lower costs. Ever demanding customers and emerging technologies are responsible for the continuing emergence of outsourcing as a mode of business. Need for outsourcing is outlined in the following points:
1. Focussed attention business firms are realizing that focusing their limited resources on a few areas where they have core competence, and contracting out the rest of the activities to their outsourcing partners can lead to better efficiency and effectiveness.
2. Quest for excellence outsourcing enables the firms to pursue excellence by virtue of limited focus and also by extending their capabilities through contracting out the remaining activities to those who excel in performing them.
3. Cost reduction it has become necessary for firms operating in global markets to maintain quality of products while keeping prices low. Thus, the only way, to survival and profitability is cost reduction. The outsourcing partners deliver the same service to a number of organizations and hence benefit from economies of large scale leading to lower cost.
But there are certain limitations of outsourcing as given below:
1. Confidentiality outsourcing depends on shafting a lot of vital information and knowledge. If the outsourcing partner does not maintain the confidentiality it can harm the interest of the party that outsources its processes.
2. Sweat shopping outsourcing firms seek to lower their costs by utilizing the low – cost manpower of the host countries. Moreover the work that is outsourced is not of the type which may build the competency and capability of the outsourcing partner.
3. Ethical concerns in search of cheap labour manufacturing processes are being outsourced to developing countries where they use child labour/women in the factories and working conditions are unhygienic and even unsafe this raises ethical concerns.
Explain ATM along with its utility?
ATM stands for Automatic Teller Machine, is a kind of machine in which if ATM card is inserted and PIN is typed then money can be withdrawn and can be deposited in it. This machine works on 24 x 7 basis. This has reduced the burden of the bank on large scale. Its use is going on increasing day by day. Bank not only allow the customers to deposit money and withdrawals but also other facilities are also provided. The services provided by the ATM differs for bank to bank.
Followings are the utility of ATM:
1. Cash withdrawals:
Through the ATM user can withdraw money at any time as per the requirement. For withdrawing money from the ATM it is necessary to use the card issued by the bank and type the PIN.
2. Cash deposit:
Money cannot only be withdrawn but can be deposited also through the ATM. When the cash is kept in the slot by the customer machine count it and credit to the concerned account and receipts is issued regarding it.
3. Balance enquiry:
As the name certifies as soon as the card is inserted and the PIN is typed ATM machine issued a printed receipt which consists of balance of the concerned account.
4. Mini statement:
Under the mini statement option the user can get the print of last 10 transactions of his account, through the ATM.
Explain the resources which are required for the e – commerce?
For successful functioning of e – commerce following facilities are necessary:
1. Computer System:
E – commerce is a business conducted over the internet. Hence, the most basic requirement is a well endowed computer system, whereby we can place or take orders with ease and convenience. A computer would be sufficient to effect business deals.
2. Internet Connection:
The next basic necessity to effectively carry out e – commerce is to get a connection froth an Internet Service Provider (ISP).BSNL is the country’s largest ISP. Apart from this, there are other private players in the field, like Mantra on – line, Satyam Infoway, Sigma on – line, Dishnet, etc. are ISP’s.
3. Technically Qualified Workforce:
E – commerce cannot function Without sufficiently qualified, technically efficient personnel, who are comfortable with operating computer networks as well as the internet. They must be absolutely certain about the formalities concerning how to receive on – line orders, receive on – line payments, and design a website and to deliver products on – line
4. Safe System of Receiving Payments:
In order to receive payments, it is essential that companies develop such safe modes, whereby the buyers may be immediately intimated about how much payment is to be made, and how it is to be made. Besides, it must also be decided and intimated to the buyers as to what arrangements have been made for any excess payments made by them.
5. Well – designed Website:
Every company should design its won website in order to provide complete information to its customers and other dealers, about its product and services, while designing its web site, it must provide graphic details of its products.