E-Business and Commerce

Questions and Answers

What distinguishes e-business from commerce?

E-business is solely focused on production activities.

E-business is limited to online transactions only.

E-business encompasses various business functions including finance and marketing. (correct)

E-business requires physical stores for operations.

How can companies utilize computer networks in e-business?

To limit their production processes.

To manage all business functions including planning and controlling. (correct)

Only for customer service interactions.

Exclusively for marketing campaigns.

In the context of e-business, what does real-time control allow firms to do?

Eliminate the need for physical inventory.

Increase the number of employees required.

Reduce all operational costs immediately.

Monitor production and delivery more effectively. (correct)

Which of the following activities is NOT typically associated with e-business?

Conducting face-to-face meetings with suppliers. Signup and view all the answers

What is a likely benefit of exercising real-time control in an e-business environment?

Improved efficiency in managing stock and distribution. Signup and view all the answers

What is one of the primary benefits of business organization for firms?

Competitive advantage over competitors Signup and view all the answers

Which benefit to consumers is associated with e-commerce?

Quick and timely delivery of digitised products Signup and view all the answers

How does business organization contribute to supply chain management?

Facilitates 'pull' supply chain management Signup and view all the answers

What aspect of e-commerce enhances consumer interaction?

Facilitation of e-Auctions and e-Tenders Signup and view all the answers

What is a key feature of e-commerce mentioned in the context of delivery?

Delivery at the consumer's pleasure Signup and view all the answers

What is the impact of the internet on the cycle time for business processes?

Cycle time is substantially reduced due to parallel processing. Signup and view all the answers

How has the internet affected globalization?

It has broadened the scope and speed of globalization. Signup and view all the answers

Which of the following best describes e-trading?

Online buying and selling of financial instruments. Signup and view all the answers

What advantage does the internet provide in terms of sourcing materials and components?

Enhanced flexibility in sourcing from global suppliers. Signup and view all the answers

What transformation does the internet facilitate in the definition of money?

Money is defined as electronic pulses transmitted quickly. Signup and view all the answers

What is the requirement for the legal recognition of digital signatures?

It must conform to a prescribed manner determined by the Central Government. Signup and view all the answers

How can the requirements for filing documents with government agencies be satisfied?

Through electronic forms as prescribed by the appropriate Government. Signup and view all the answers

What does the retention of electronic records imply under the law?

Electronic forms of records are acceptable for retention. Signup and view all the answers

Which of the following statements is correct regarding the use of digital signatures in legal matters?

Digital signatures are legally acceptable if they meet prescribed regulations. Signup and view all the answers

What does Section 5 of the Information Technology Act state about authentication?

It states that digital signatures can satisfy legal signature requirements. Signup and view all the answers

What do cookies resemble in the context of their function?

Caller ID in telephones Signup and view all the answers

What is one of the main risks when data is transmitted online?

Information may be stolen or modified Signup and view all the answers

What does the acronym 'VIRUS' stand for?

Vital Information Under Risky Use Signup and view all the answers

What is a recommended safety measure when shopping online?

Only use well-established shopping sites Signup and view all the answers

Which of the following statements is true regarding internet information?

Anyone can access information stored online Signup and view all the answers

What tool is considered important for safeguarding data in online transactions?

Cryptography Signup and view all the answers

What is a common motivation behind data theft online?

To pursue selfish motives Signup and view all the answers

Which scenario represents a threat to intellectual property online?

Data accessed by multiple users Signup and view all the answers

Study Notes

Overview of E-Business

E-business encompasses all business functions, including production, finance, marketing, and managerial activities.
Operates through computer networks for tasks like placing orders, monitoring production, delivery, and payment processes.

Scope and Benefits of E-Business

Expands marketplace reach both nationally and internationally.
Reduces operational costs over time.
Enables ‘pull’ supply chain management enhancing efficiency.
Provides businesses with a competitive advantage.
Improves time management and supports various business processes.
Facilitates coexistence between small and large firms, creating win-win scenarios.

Consumer and Societal Benefits

Offers consumers flexibility and competitive pricing.
Increases availability of options and customized products.
Ensures quick and timely delivery, particularly of digitized products.
Generates employment opportunities and enables participation in e-Auctions and e-Tenders.
Enhances interaction between firms and consumers, broadening outreach.

E-Commerce Variants and Functions

Business-to-Consumer (B2C): Allows businesses to maintain constant communication with customers.
E-Trading: Involves online buying and selling of securities, with platforms like Sharekhan leading in India.
Transition towards a paperless society, minimizing reliance on physical documentation.

Technological Impact on Business Processes

E-commerce accelerates cycle time from demand to fulfillment, streamlining operations.
Electronic funds transfer technology redefines money transactions as electronic pulses.
Digital signature legislation enables the verification of electronic documents, enhancing legal transactions.

Risk and Security in E-Business

E-commerce security involves safeguarding data from potential threats and data breaches.
Risks associated with data storage include unauthorized access and potential information theft.
Consumers are advised to transact only with established and reliable online sellers.

Intellectual Property and Privacy Concerns

Internet environments make information vulnerable, leading to risks of intellectual property theft and loss of privacy.
Awareness of viruses and hacking is crucial for maintaining online security.
Data once exposed to the internet transcends private ownership, highlighting the importance of robust cybersecurity measures.

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Description

Explore the various aspects of e-business as an advanced form of commerce. This chapter covers essential business functions including production, finance, and marketing, highlighting the significance of e-commerce in today's business landscape.

E-Business and Commerce - Chapter 5