Emerging Modes of Business Chapter 5

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Questions and Answers

What is a key difference between e-business and e-commerce?

E-business exclusively refers to sales transactions.

E-business covers a broader range of activities beyond just transactions. (correct)

E-commerce is solely conducted over the internet.

E-commerce includes internal management functions.

Which of the following is NOT included in e-business activities?

Human resource management

Television advertising (correct)

Customer service via email

Production management

What primarily differentiates the networks used for e-business from the public internet?

E-business networks require no technical expertise.

E-business networks are free to use.

E-business networks are more private and secure. (correct)

E-business networks offer faster internet speeds.

Which of the following functions are part of e-business?

Inventory management Signup and view all the answers

In the context of e-business, what does the term 'scope' refer to?

The breadth of activities included in e-business. Signup and view all the answers

What is required for a seller to accept credit cards as an online payment type?

An SSL Certificate Signup and view all the answers

Which of the following statements about digital cash is true?

It exists only in cyberspace. Signup and view all the answers

What is the primary concern associated with online transactions compared to traditional methods?

Risk of mishappenings Signup and view all the answers

Which payment method allows for electronic transfer of funds without physical involvement?

Digital Cash Signup and view all the answers

What does 'risk' refer to in the context of e-transactions?

Possibility of mishappenings Signup and view all the answers

Why are e-business and outsourcing considered emerging modes of business?

They enhance efficiency and reduce operational costs. Signup and view all the answers

Which step is NOT typically involved in online trading?

Maintaining a physical storefront. Signup and view all the answers

What is essential before conducting online transactions to acquire digital cash?

Paying the bank an amount equivalent to the desired digital cash Signup and view all the answers

What is one major limitation of outsourcing?

Loss of control over certain business processes. Signup and view all the answers

Which aspect does B2C commerce primarily focus on?

Direct sales to consumers. Signup and view all the answers

Which of the following does NOT fall under transaction risks as described?

Data transmission errors Signup and view all the answers

How significant are the limitations of electronic modes of doing business in restricting its scope?

They can be severe enough to deter users from electronic business. Signup and view all the answers

What software is typically provided by banks for online transactions?

Special software to manage digital cash Signup and view all the answers

What does default on order taking/giving indicate in online transactions?

Failure on the seller's part to deliver the order Signup and view all the answers

Which of the following is NOT a major concern in e-business?

Customer loyalty programs Signup and view all the answers

What is a primary advantage of e-business compared to traditional business?

Simple ease of formation Signup and view all the answers

Which characteristic differentiates the organizational structure of e-business from traditional business?

Flat/horizontal structure Signup and view all the answers

What is the impact of e-business on the response time for customer requirements?

Instantaneous response Signup and view all the answers

What type of communication is typical in a traditional business compared to e-business?

Indirect communication through intermediaries Signup and view all the answers

Which of the following best describes the cost implications of e-business?

Low because of network reliance Signup and view all the answers

Which of the following is NOT a characteristic of e-business?

Complex formation process Signup and view all the answers

How does the nature of contact with suppliers differ between traditional and e-business?

Direct in e-business Signup and view all the answers

In terms of locational requirements, how do e-business and traditional business compare?

E-business has no proximity to market requirements Signup and view all the answers

What is a common organizational structure in traditional business?

Vertical/tall hierarchy Signup and view all the answers

What is a typical cost factor for traditional business operations?

High associated with physical facilities Signup and view all the answers

Study Notes

e-Business Overview

e-Business encompasses various electronic transactions and functions, including e-commerce.
e-Commerce specifically involves interactions with customers and suppliers via the internet.
e-Business extends beyond buying and selling to include production, inventory management, and finance.

Key Differences between Traditional Business and e-Business

Formation Ease: Traditional businesses are often difficult to start; e-businesses are simpler to establish.
Physical Presence: Traditional businesses require physical locations; e-businesses do not necessitate a physical footprint.
Locational Requirements: Traditional models depend on proximity to raw materials; e-businesses eliminate these constraints.
Setup Costs: Traditional businesses incur high costs due to infrastructure; e-business setups are comparatively low.
Operating Costs: Traditional businesses bear high operating costs; e-businesses generally rely on networks, reducing ownership costs.
Supplier & Customer Interaction: Traditional businesses interact indirectly through intermediaries; e-businesses allow direct contact.
Internal Communication: Traditional firms use hierarchical structures; e-business models favor non-hierarchical, flat structures.
Response Times: e-Business facilitates instantaneous responses compared to traditional businesses' longer wait times.

Payment Methods in e-Business

Credit Card Acceptance: Requires secure systems for processing payment information, including online authorization.
Net Banking Transfers: Enables electronic transfer of funds, utilizing SSL certificates for security.
Digital Cash: Exists only in cyberspace, representing electronic currency without physical attributes.

Security and Risks in e-Business

Transaction Risks: Risks from online transactions include potential disputes over order fulfillment.
Data Security: Ensuring safe storage and transmission of data is critical to mitigate risks like hacking and data breaches.
Intellectual Property Threats: e-Businesses must protect intellectual property to prevent theft and misuse.

Notable Considerations

Ethical considerations arise regarding the monitoring of online activities, such as user tracking and data privacy.
Platforms like eBay provide customer protection measures, including seller ratings and reimbursement for undelivered orders.

Discussion Points

Explore reasons for the rise of e-business and outsourcing as modern business strategies.
Analyze the steps involved in online trading, from product selection to payment.
Evaluate the benefits and drawbacks of outsourcing within e-business models.
Discuss the unique features and significance of B2C (Business to Consumer) commerce.
Examine limitations of electronic business, assessing if they significantly hinder its growth potential.

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Description

This quiz focuses on Chapter 5 of the 'Emerging Modes of Business' material, which delves into the concepts of e-Business. It covers transactions and functions that are conducted electronically. Test your understanding of these modern business practices and their implications.