Please see Chapter 5 Emerging Modes of Business Exam Questions Class 11 Business Studies below. These important questions with solutions have been prepared based on the latest examination guidelines and syllabus issued by CBSE, NCERT, and KVS. We have provided Class 11 Business Studies Questions and answers for all chapters in your NCERT Book for Class 11 Business Studies. These solved problems for Emerging Modes of Business in Class 11 Business Studies will help you to score more marks in upcoming examinations.
Exam Questions Chapter 5 Emerging Modes of Business Class 11 Business Studies
Very Short Answer Type Questions
Question. What is ‘e’ commerce?
Answer : e-business is a more elaborate term and comprises various business transactions and functions conducted electronically, including the more popular gamut of transactions called ‘e-commerce’. e-commerce covers a firm’s interactions with its customers and suppliers over the internet. e-business includes not only e-commerce, but also other electronically conducted business functions such as production, inventory management, product development, accounting and finance and human resource management
Question. What is outsourcing?
Answer : It refers to a long-term contracting out generally the non-core and of late even some of the core activities to captive or third-party specialists with a view to benefitting from their experience, expertise, efficiency and, even investment.
Question. What do you mean by Intra B Commerce?
Answer : Intra B Commerce refers to business where parties involved in the electronic transactions are from within a given business firm. It is largely due to use of intra-B commerce that today it has become possible for the firms to go in for flexible manufacturing. Use of computer networks makes it possible for the marketing department to interact constantly with the production department and get the customized products made as per the requirements of the individual customer. For example: Virtual Private Network (VPN) technology would mean that employees do not have to come to office. Instead, in a way the office goes to them and they can work from wherever they are, and at their own speed and time convenience. Meetings can be held online via tele/ video conferencing
Question. Briefly state the scope of business on the basis of business function ?
Answer : Scope of business on the basis of business function are production, finance, marketing and personnel administration as well as managerial activities like planning, organising and controlling can be carried out over computer networks.
Question. Briefly state the scope of business on the basis of parties involved in electronic transaction?
Answer : Scope of business on the basis of parties involved in electronic transaction are B2B which is a firm’s interactions with other businesses, B2C i.e., a firm’s interactions with its customers and Intra-B or a firm’s internal processes
Short Answer Type Questions
Question. Distinguish between e-commerce and e-business
• The conduct of industry, trade and commerce using the computer networks is defined as e-Business
• e-business is a more elaborate term and comprises various business transactions and functions conducted electronically, including the more popular gamut of transactions called ‘e-commerce’
• e-commerce covers a firm’s interactions with its customers and suppliers over the internet.
• e-business includes not only e-commerce, but also other electronically conducted business functions such as production, inventory management, product development, accounting and finance and human resource management.
Question. Explain briefly points in opposition with outsourcing?
Explain any four limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope? Give reasons for your answer.
Question. State three limitations of e-business?
1. Security issues: There are a lot of people who scam through online business. Also, it is easier for hackers to get your financial details. It has a few security and integrity issues. This also causes distrust among potential customers
2.Delivery time: The delivery of the products takes time. This lag time often discourages customers. However, ebusinesses are trying to resolve such issues by promising very limited delivery times. For example, Amazon now assures one-day delivery
3. Lack of Personal Touch: One can touch or feel the product. So it is difficult for the consumers to check the quality of a product. In the traditional model, we have contact with the salesperson. This lends it a touch of humanity and credibility. It also builds trust with the customer. An e-Business model will always miss out on such attributes
Long Answer Type Questions
Question. Explain Nature and need for outsourcing service
Why are e-business and outsourcing referred to as the energing modes of business? Discuss the facts
responsible for the growing importance of these trends?
Answer : Nature of Outsourcing
1. Interchangeable or Fungible Activities: Activities which are not differentiable can be outsourced but
unique activities can’t be outsourced.
2. Requiring Explicit knowledge which is Formal and Codifiable: An IT programmer’s job can be
outsourced but not that of a CEO, because CEO’s job involves managerial, technical and human relations
3. Activity is Measurable: You cannot outsource what you cannot measure.
4. Activity is not interconnected to other jobs: A job which is fungible, specialised, and measurable may
not be outsourced, if it is connected to other critical activities within the organisation. Interconnectedness
may be pooled, sequential and mutual.
Question. Explain briefly benefits of e-business.
1. Easy to set up: we can set up an online business even by sitting at home if we have the required software, a device, and the internet.
2. Cheaper than traditional business: The cost taken to set up an e-business is cheaper. Also, the transaction cost is effectively less.
3. No Geographical Boundaries: Anyone can order anything from anywhere at anytime. On the one hand, it allows the seller an access to the global market; on the other hand, it affords to the buyer a freedom to choose products from almost any part of the world.
4. Flexible business hours: Since the internet is always available. E-business breaks down the time barriers that location-based businesses encounter
5. Speed and Efficiency: Online ordering systems can process payments and orders in real-time, usually faster, more accurately and cheaper than human workers
6. Movement towards paperless society: Use of internet has considerably reduced dependence on paperwork In fact, e-commerce tools are effecting the administrative reforms aimed at speeding up the process of granting permissions, approvals and licences
Question. Explain risks involved in e-business in detail?
Answer : ♦ Transaction Risks:
• Seller denies that the customer ever placed the order or the customer denies that he ever placed the order. This may be referred to as ‘default on order taking/giving
• The intended delivery does not take place, goods are delivered at wrong address, or goods other than ordered may be delivered. This may be regarded as ‘default on delivery’.
• Seller does not get the payment for the goods supplied whereas the customer claims that the payment was made. This may be referred to as ‘default on payment’.
• Thus, in e-business risk may arise for the seller or the buyer on account of default on order taking/giving, delivery as well as payment
♦ Data storage and transmission risks:
• Data stored in the systems and en-route is exposed to a number of risks. Vital
information may be stolen or modified to pursue some selfish motives or simply for fun/ adventure
• Installing and timely updating anti-virus programmes and scanning the files and disks with them provides protection to your data files, folders and systems from virus attacks.
• Data may be intercepted in the course of transmission. For this, one may use cryptography. It refers to the art of protecting information by transforming it (encrypting it) into an unreadable format called ‘cyphertext’. Only those who possess a secret key can decipher (or decrypt) the message into ‘plaintext’
♦ Risks of threat to intellectual property and privacy:
• Once the information is available over the internet, it moves out of the private domain.
It then becomes difficult to protect it from being copied.
• Data furnished in the course of online transactions may be supplied to others who may start dumping a host of advertising and promotional literature into your e-mail box.