CBSE Class 11 Business Studies Emerging Modes Of Business Assignment

CBSE Class 11 Business Studies Emerging Modes Of Business Assignment . Students are advised to refer to the attached assignments and practise them regularly. This will help them to identify their weak areas and will help them to score better in examination. Parents should download and give the assignments to their children for practice.

 

Question. M/s Systema Shyam is engaged in the preparation and publications of online advertisements through banners and pop-ups, etc. Services provided by Systema Shyam are an example of
(a) e-delivery
(b) e-bidding
(c) e-promotion
(d) e-procurement

Answer : C

Question. ……… refers to the division of society on the basis of familiarity and nonfamiliarity with digital technology.
(a) Online bidding
(b) Digital divide
(c) e–business
(d) None of these

Answer : B

Question. ……… refers to unauthorised access to a computer network.
(a) Hacking
(b) Cyber crime
(c) Ethical fall out
(d) Problems of wires

Answer : A

Question. Common name for ATM, debit card, credit card, metro card etc is
(a) electronic card
(b) smart card
(c) visa card
(d) master card

Answer : B

Question. Various departments of an organisation like purchase, marketing, production, HR, etc can interact with one another using
(a) B2B commerce
(b) B2C commerce
(c) Intra-B commerce
(d) C2C commerce

Answer : C

Question. DELTA Ltd is a leader in online selling of sports item. Recently, the company received an e-mail in its mail junk folder from an anonymous person. On opening the e-mail and after clicking on the link given in the mail, the entire computer system of the company was damaged. Identify the type of e–business risk that has caused damage to the computer system of DELTA Ltd.
(a) Transaction risk
(b) Intellectual property and privacy risk
(c) Data storage and transmission risk
(d) None of the above

Answer : C

Question. Purchase of security lock system by Honda from Atom Mortice is an example of C2C transaction.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. C2C transactions originate from the consumer and they end on the consumer.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. …… is not an application of e–business.
(a) Online bidding
(b) Online procurement
(c) Online trading
(d) Contract research and development

Answer : D

Question. ‘‘Most shopping sites have ‘quote your price’ option whereby you can bid for the goods and services.’’ What application of e-business is described above?
(a) e-bidding/e-auction
(b) e-promotion
(c) e-procurement
(d) e-trading

Answer : A

Question. OLX market place is a platform for buying and selling services and goods such as electronics, furniture, household goods, cars and bikes. It connects local people to buy, sell or exchange used goods by making it fast and easy for anyone to post a advertisement through their mobile phone or on the web.
Identify the component of e–business being described in the given case.
(a) C2C
(b) B2B
(c) B2C
(d) C2B

Answer : A

Question. Tata Sons and company used a technology due to which employees do not have to come to office. Instead office goes to them and employees can work wherever they are with speed and time convenience their meetings can be held online via tele/video conferencing. Identify which technology is used by the company?
(a) e-communication
(b) Virtual Private Network technology (VPN)
(c) Both (a) and (b)
(d) None of the above

Answer : B

Question. Rendering of legal, accounting, medical and other consultancy services, electronic delivery of computer software, photographs and other multimedia services to the user’s computer by means of Information Technology Enabled Services (ITES) is known as
(a) e-procurement
(b) e-bidding
(c) e-delivery
(d) e-trading C

Question. It is widely used and internationally recognised coding system to represent characters in a standard way.What is this?
(a) SSL
(b) ASCII
(c) VPN
(d) None of these

Answer : B

Question. The scope of e–business is ……… than that of e–commerce.
(a) narrow
(b) wider
(c) Both (a) and (b)
(d) None of these

Answer : B

Question. Purchase of bike by Aman from Akshay using online Bikes 24 app is an example of C2C transaction.
(a) True
(b) False
(c) Can’t say
(d) Parially true

Answer : A

Question. Match the following.

Codes
       A  B   C 
(a) (i) (ii) (iii)
(b) (iii) (i) (ii)
(c) (ii) (i) (iii)
(d) (i) (iii) (ii)

Answer : C

Question. Withdrawal of money from ATM is an example of ……… transaction.
(a) C2B
(b) C2C
(c) B2C
(d) B2B

Answer : C

Question. Creating blogs to form various consumer forums and pressure groups through which an aggrieved customer can share his experience about a product is an example of
(a) B2C commerce
(b) C2C commerce
(c) Intra B–commerce
(d) B2B commerce

Answer : B

Question. ……… is a pre-requisite for implementation of e-business.
(a) Website
(b) Virtual private network
(c) Anti-virus
(d) Payment mechanism

Answer : A

Question. Which distribution channel is used in e–business?
(a) Wholesaler
(b) Retailer
(c) Both (a) and
(b) (d) None of these

Answer : D

Question. The volume of B2B transactions is much ……… than the volume of B2C transactions.
(a) lower
(b) higher
(c) Both (a) and (b)
(d) None of these

Answer : B

Question. Virtual Private Network (VPN) technology is a technology due to which employees do not have to come to office.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. There is greater opportunity for interpersonal touch in case of e–business.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. In B2B transactions, a business interacts with a number of other business firms which may be suppliers or vendors of diverse inputs.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. Which one of the following is not an advantage of traditional business?
(a) Direct interaction with customer
(b) Low transaction risks than e-business
(c) Opportunity for physical sampling of goods
(d) Ease of going global

Answer : D

Question. Which one of the following is a factor which gives advantage to e-business over traditional business?
(a) Transaction risks
(b) Investment requirement
(c) Ethical fallouts
(d) Personal touch with customers

Answer : B

Question. In C2B transactions, parties involved in the electronic transactions are from within a given business firm only.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. Intra-B commerce transactions may be conducted for
(a) human resource management
(b) promotional activities
(c) selling and distribution of goods
(d) after sale service

Answer : A

Question. ‘‘It is the generic term for software programme that retrieve, display and print information on world wide web’’. Identify what term of e-business referred here.
(a) ASCII
(b) Browser
(c) VPN technology
(d) None of these

Answer : B

 

• Basic & Key Concepts Explanation
Key Terms
e – Business
e – Business refers to the process of performing Business activities electronically
through the means of internet.
Virus
Virus stands for Vital Information & Resources Under Siege e – Trading
e – Trading involves securities trading, i.e. online buying & selling of shares and other financial instruments.

Digital Cash
Digital Cash refers to electronic cash instead of actual money which exists only in cyberspace (also known as cyber currency)

Sweat Shopping
Firms that outsource seek to reduce their costs and get maximum benefit from the low –cost manpower. This is known as “Sweat Shopping”.

e – Commerce
e – Commerce refers to a firm’s interactions with its customers and suppliers over internet.

Secure Sockets Layer (SSL)
It is the technology used in encrypting and securing vital user information such as Credit/Debit card details etc. which are used in online transactions.

e – Procurement
It involves internet based – sales between business firms forming digital marketplaces facilitating online trading between multiple buyers and sellers.
Business Process Outsourcing (BPO)
The process of contracting out non‐core business activities to 3rd parties in order to reduce costs and time involved.

Online Trading
The act of selling and buying anything online.

e – Bidding
Most shopping sites have “Quote your price” option whereby you can bid for goods and services. This refers to process of conducting auctions online.

Call Centres
Firms generally outsource their customer support to 3rd parties, which provide 24x7 Customer Support by the means of tele calling.
The 3rd parties to whom this process is outsourced are called “Call Centres”.

Captive BPO units
The outsourced ‐ units over which the outsourcing firm has control.

Horizontals
The 3rd parties which undertake outsourcing contracts from many firms and doing a
wide variety of jobs and processes are known as “Horizontals”.

Verticals
The 3rd parties which undertake outsourcing contracts from other firms but are
specialized to do only certain specific non‐core to core activities.

B2B Commerce
Refers to electronically conducted business transactions between business to business.

B2C Commerce
Refers to electronically conducted Business transactions to Customers.

Intra‐B Commerce

Refers to electronically conducted business transactions within a given business firm.

C2C Commerce
Refers to electronically conducted Business transactions between Consumer to Consumer.

• e – Business
e – Business refers to all business transactions and functions conducted electronically.

• e – Business vs. e – Commerce
e – Business is more inclusive term than e – Commerce while e – Commerce refers to a firm’s interactions with its customers and its supplier over the internet. e – Business, apart
from e – Commerce includes all other electronically conducted business activities such as inventory management, production, product development, accounting, finance, etc.,

• Scope of e – Business
The scope of e – Business is quite vast, it includes the following :‐
1. B2B Commerce :‐ Refers to electronically conducted business transactions between business to business.
2. B2C Commerce :‐ Refers to electronically conducted Business transactions to Customers.
3. Intra‐B Commerce:‐ Refers to electronically conducted business transactions within a given business firm.
4. C2C Commerce :‐ Refers to electronically conducted Business transactions between Consumer to Consumer.

• Benefits of e – Business 

1. Easy to form
Very easy to start e – business because host of procedures required for traditional business are not required for e – Business

2. Requires Less Investment
Both big and small business gets the benefits of internet equally. Thus even one start of small business with less investment can derive the benefit of e – Business.

3. Convenience
Internet offers the convenience of 24 hours X 7 days a week with a less investment – i.e. one can access anything, anywhere, any time.

4. Speed
Any business transaction can be made simply at the click of the mouse button, for e.g. Electronic Funds Transfer takes place at the speed of light

5. Global reach/access
In e – Business both businessmen and consumers have no national boundaries because internet is without such boundaries. In absence of such internet, globalization may be restricted in scope and speed.

6. Movement towards paperless society
Cutting thousands and thousands of trees to make paper adversely affects the environment but internet has considerably reduced the dependence on paper.

1. Low Personal Touch
Interpersonal touch between businessmen and the consumer is very important. e – Business may be high tech but the lacking interpersonal interaction is truly one of its shortcomings.

2. Delayed Delivery
Sometimes order may be placed at once through internet but delivery may be delayed, which may disturb the customers.

3. Need for technological capability and competence of parties
If any one party – either buyer or seller is not familiar with digital technology, e – Business becomes difficult.

4. Risk of Non‐Traceability of parties
Cyber personalities participate in e – Business, when any one is in remote area –Traceability may be one the biggest problem.

5. People’s Resistance
In general, people resist changes and halt will be more if any organization prefers to go fully online.

6. Ethical Fallout
In e – Business, unless until you have high degree of protection, any one can keep an electronic eye on your transaction, even intrude into your privacy – which is ethically incorrect.

• Despite limitations, e – Commerce is the way
Yes, it is absolutely true, because when you wish to buy something especially from other countries or from distant seller, problems faced by you in traditional business is more
than e – Commerce – thinking in terms of travelling – carrying money – time required – speed involved – mode of payment etc.
Therefore, despite limitations e – Commerce is the way.

• Online Transactions
Involves three stages:‐
1. Pre‐Purchase/ Sale Stage – Including advertising and information seeking.
2. Purchase / Sale Stage – Comprising of price negotiation, closing deal & payment.
3. Delivery Stage – Involves physical delivery of goods.
The first two steps – involves only interaction and thus can be effectively done online.
• Steps involved in online purchase

1. Registration
Register yourself with online vendor by filling up registration form – i.e. now you have an account with the online vendor and you receive your account’s password and an online shopping cart.

2. Placing an Order
You can pick and drop the items of your choice in the online ‘shopping cart’ (Just an online record) – choose check out and payment option.

3. Payment Options

a. Cash on Delivery(COD)
Pay cash at the time of physical delivery of goods b. Cheque
Vendor arranges the pick up of the buyer’s cheque(s) – Upon realization the delivery is made

c. Net‐Banking Transfer
Electronic transfer of funds from the buyer to the seller, after which the seller makes the delivery

d. Credit/Debit Cards
These are also called ‘Plastic Money’, the buyer enters the respective card’s details and the transaction is made. Credit cards allow the buyer to make purchases on credit, whereas Debit cards make use of the buyer’s existing money.

e. Digital Cash
This form of currency exists only in cyberspace. The buyer deposits money into the Digital Cash account and this money are utilized for making purchases online.

• e – Business Risks
There are three types of possible risks as listed below:

1. Transactions Risks
• Seller may deny that customer ever placed the order or the customer may deny that he ever placed the order. It is called “Default on Order taking/ Giving”.
• Goods may be delivered at wrong address or wrong goods may be delivered which is referred as “Default on Delivery”.
• Seller may claim/complain that he didn’t receive payment while customer may claim that payment was over. This is referred as “Default on Payment”.

2. Data Storage and Transmission Risk
• VIRUS – Virus can create annoyance, disrupt functioning, damage target data even may cause complete destruction of the system.
• Interception – Data maybe intercepted in the course of transmission by others.
If it goes in the wrong hands it may be detrimental to the business.

3. Threat to intellectual property & Privacy
• Once the information is made available over the internet, it moves out of the private domain. So any secret formulae or research findings, improved/ new method of production and other such intellectual properties may be stolen by others.
• When data furnished goes in the hands of others they may start dumping with lot of advertising & promotional literature into our e‐mail box.

• Outsourcing
Features of Outsourcing

1. Outsourcing involves contracting out
Non – Core activities such as maintaining cleanliness, gardening, housekeeping etc. maybe contracted out to the outside agencies so that the business can concentrate on core activities.

2. Generally non‐core business activities are outsourced
For some organizations, non‐core activities may be their core activities e.g. House Keeping for hotel business, so every organization used to identify its own non – core activities and outsource them.

3. Processes may be outsourced to a captive unit or 3rd Party
Multinational Companies (MNCs) normally outsource different processes such as recruitment, selection, training, pay roll, customer support etc. to business units created especially for this purpose and ensure efficiency.

• Scope of Outsourcing
Outsourcing comprises four key segments:
• Contract Manufacturing
• Contract Sales
• Contract Research
• Informatics

• Need for Outsourcing
Outsourcing is being resorted to not out of compulsion but also out of choice. The major reasons of outsourcing are as follows:

1. Focusing of attention
By contracting out some of the non – core activities, the business may have sufficient time to focus its attention on core‐activities.

2. Quest for excellence
Outsourcing does not mean contracting out some of our work to any outsider but it means contracting out to a specialist who can perform the contracted work in an excellent way.

3. Cost Reduction
Due to global competition, not only a firm needs to ensure global quality but also global competitive pricing. For this the company needs to reduce its cost of operation by contracting out the work to specialists who are cost‐efficient.

4. Growth through alliance
A business may have a ownership stake in the other business to whom it is interested to contract out its own work. By doing so not only the profit of the outsourcing business goes up but it can have a share in the profit of the contracted business, as it is a stakeholder in that.

5. Fillip to economic development
Outsourcing stimulates entrepreneurship, employment & exports thus it helps the economy to develop. For example, as far as global outsourcing in software development and IT enabled services are concerned, India has 60% of the global outsourcing share.

• Concerns over Outsourcing
Outsourcing has its own benefits and has to stay globally but it has its own limitations as discussed below:

1. Confidentiality
Outsourcing depends on sharing a lot of vital information and knowledge. If the outsourcing partner passes it on to competitors it can harm the business to a greater extent. Not only that even the outsourcing partner may start a competent business.

2. Sweat Shopping
As the firms that outsource seek to lower their costs, they try to get the maximum from the low‐cost manpower of the host countries, this may result in sweat shopping and the firm that goes in for outsourcing may look for ‘doing’ skill rather than development of ‘thinking’ skill.

3. Ethical Concerns
In the name of cost cutting, unlawful activities such as child labour, wage discrimination maybe encouraged in other countries.

4. Resistance in home countries
Contracting out ultimately result in contracting out of employments; this may create resistance in the home countries. Particularly if the home country is suffering from problem of unemployment.