Gujarat Board GSEB Class 11 Organization of Commerce and Management Important Questions Chapter 4 Communication, E-Commerce and Outsourcing Important Questions and Answers.

GSEB Class 11 Organization of Commerce and Management Important Questions Chapter 4 Communication, E-Commerce and Outsourcing

Short Answer Type Questions

Question 1.
What is a dialect? Who use it as a tool for communication?
Answer:
Dialect is a form of language which is limited to a specific region or people. It is generally used by localites of that region.

Question 2.
State the types of communication.
Answer:
Verbal and non-verbal communication.

Question 3.
What does the ‘KISS’ principle says?
Answer:
It says that when a sender sends a message he should ‘keep It short and sweet (KISS)’ so that the receiver can understand the message easily.

Question 4.
What is verbal communication
Answer:
When information or messages are transmitted by using words in any language it is called verbal communication. Verbal communication can be either written or oral

Question 5.
What is non-verbal communication?
Answer:
Communication done without using words is called non-verbal communication.

Question 6.
How can you communicate non-verbally?
Answer:
Using signs, physical expressions, posture, facial and eye expressions, music, dance, singing, sculptures, paintings, drawing, map. firing canons, blowing sirens and whistler, etc.

Question 7.
With which two words is ‘internet’ made of?
Answer:
‘Interconnection’ and ‘network’

Question 8.
Into how many major types can you classify a network? Name them.
Answer:
Four:

1. Local Area Network (LAN),
2. Campus Area Network (CAN),
3. Metropolitan Area Network (MAN),
4. Wide Area Network (WAN).

Question 9.
What is LAN?
Answer:
LAN is a computer network that interconnects computers within a limited are a such as within a room, within an office, a school, etc.

Question 10.
Define CAN.
Answer:
CAN is a computer network that interconnects the computers within a geographical area such as a college campus, industrial complex, etc.

Question 11.
Define MAN.
Answer:
Metropolitan Area Network or MAN is a computer network that interconnects computers of entire city.

Question 12.
What is WAN?
Answer:
Wide Area Network (WAN) is a computer network that extends over a very large geographical distance compared to LAN, CAN or MAN. In this sense the computers under WAN are connected globally through telephone line, fiber optic cables, or satellite links.

Question 13.
State the two main types of WAN.
Answer:

1. Enterprise WAN and
2. Global WAN.

Question 14.
Which is the largest WAN of the world?
Answer:
Internet.

Question 15.
Give one example of enterprise WAN or intranet established in India?
Answer:
Indian railways have set-up enterprise WAN or say internet.

Question 16.
What is Global WAN? Why it is also called World Wide Web?
Answer:
Global WAN is a network that has no geographical bondages. It is spread in various countries and even continents. It is a collective network of networks of various organizations .. and is also called World Wide Web (WWW).

Question 17.
State the three major functions of internet.
Answer:

1. Contacting other persons,
2. Receiving information, and
3. Connecting other computer systems.

Question 18.
List the media’s needed fore-commerce trading.
Answer:
Media’s like computer, internet, e-mail account, credit and debit card, etc. are needed for e-commerce trading.

Question 19.
List out necessary equipments for successfully implementing e-commerce.
Answer:
Website, computer with internet, debit and , credit cards.

Question 20.
State two advantages of e-commerce.
Answer:

1. One can buy/sell products sitting at home,
2. Customer problems can be solved faster.

Question 21.
How can one save time and cost through e-commerce?
Answer:
Compared to traditional trading one can sit at home and buy/sell, advertise, perform banking transactions, etc. sitting at one place. This saves time of movement and expense incurred during movement.

Question 22.
State the scope of e-commerce.
Answer:

1. B2C (Business to Customer),
2. B2B (Business to Business),
3. C2C (Customer to Customer) and
4. C2B (Customer to Business).

Question 23.
How does B2C works? Give two names of such sellers.
Answer:
In Business to Customer (B2C) the businessman (seller) displays its product on the website. The customer who sees it and likes it buys it online; Amazon and Flipkart are two such sellers.

Question 24.
What is B2B? Give an example.
Answer:
In B2B model both the parties are businessman i.e. one businessman sells its product to another. For example, a businessman would like to create its website for its customers or would like to design brochures for advertising his products. On the other hand there is a businessman whose company does the activity of designing websites brochures, etc. for clients.

Question 25.
What is C2C model of e-commerce?
Answer:
In C2C a customer directly comes in contact

Question 26.
Give one example. with another customer without any mediator.
Answer:
Any internet user becomes a seller as well . as buyer. The best example for C2C would be e-bay.com.

Question 27.
How does a C2B model works?
Answer:
In C2B model a consumer let’s say an individual who has something to offer either a service or a good sells them to companies (businesses) and in turn companies pay such customers for the work he provides. For example, a designer (i.e. a customer) may sell his designs to a garment manufacturing company. Since the customer is selling his product or service he decides its price.

Question 28.
What is a website?
Answer:
Website is a page or pages of information published by a person or an organization on the internet.

Question 29.
List the stages of online shopping from customer’s point of view.
Answer:

• Registration
• Placing an order and
• Making payment.

Question 30.
What do you mean by new user sign-in online shopping?
Answer:
When a customer needs to buy something in online he fills up a registration form on seller’s website. This is called new user sign-in.

Question 31.
What is shopping cart in online shopping?
Answer:
When a customer wants to buy something online he selects i.e. tick marks the item. The items that he selects is considered to be added to his shopping cart.

Question 32.
What is COD?
Answer:
It is a mode of payment while shopping online where in the customer pays after he receives the product at his address.

Question 33.
How can a buyer pay through cheque while shopping online?
Answer:
When the customer places an order online the seller sends his person to collect the cheque from the customer. Once the cheque amount is credited in seller’s account he sends the product.

Question 34.
How does credit card payment works in e-commerce?
Answer:
The customer while shopping provides his card details on seller’s website. Based on the buyer’s credit limit the bank pays the money to the seller and then recovers it from the buyer later.

Question 35.
What is digital cash (e-currency)?
Answer:
Digital cash is a system of purchasing cash credit from the banks, storing the credits in your computer in a banking software and spend whiie purchasing electronically over the internet.

Question 36.
State the major risks associated with online shopping.
Answer:

• Risk of wrong transactions,
• Risk of data getting stolen,
• Risk of intellectual wealth and privacy.

Question 37.
Give example of risks of wrong transactions.
Answer:
The seller may say he did not receive order, the buyer may say he did not place an order, wrong delivery, orders placed by mistake, etc.

Question 38.
How can one safeguard against risk of wrong transactions.
Answer:
Seller should verify name, address, order history of the buyer and buyer should buy only from reliable websites.

Question 39.
What is virus?
Answer:
Virus is a computer programme put on internet by hackers.

Question 40.
How can virus harm us?
Answer:
Virus may interrupt the screen, prevent the computer from working properly, damage data files and even whole computer system.

Question 41.
How can one safeguard against virus?
Answer:
By installing anti-virus software and surfing reliable websites.

Question 42.
How can one be secured against intellectual wealth and privacy?
Answer:
By providing personal information such as e-mail, address, phone number only on reliable web-sites and avoid visiting doubtful websites.

Question 43.
State reasons for outsourcing.
Answer:
Outsourcing can be done within the company or with othe. companies.

Reason for outsourcing are :

• Large companies outsource small works so that they can focus on main activities of the companies,
• Some companies even outsource their main activities in case they do not have sufficient infrastructure or knowledge to do on their own.
• To save costs.

Question 44.
State few activities that a company may outsource.
Answer:
Company may outsource activities like call centre, sales and marketing, research and development, canteen, production, legal activities, etc.

Question 45.
List out the reasons for need of BPO.
Answer:

• Cost-cutting
• Focus on principle activities of company
• Benefit of efficiency,
• To cater the dynamic demand and
• Increased benefits.

Question 46.
How can a business obtain benefit of efficiency in outsourcing?
Answer:
By outsourcing to a professional company a business can take benefit of the rich experience and efficiency professional unit possess. If might be quite difficult or even impossible for the business firm to carry out such outsourced work on its own with such efficiency and expertise.

Question 47.
State the scope of BPO.
Answer:

• Back-office outsourcing: A company can outsource its back-office works like billing, purchase, data entry, etc.
• Front-office outsourcing: This includes customer services like sales and marketing, technical assistance, etc.

Question 48.
What is KPO?
Answer:
A form of outsourcing in which knowledge and information-related work is given to another company or to some subsidiary department within the company is called outsourcing of knowledge-related process or Knowledge Process Outsourcing (KPO).

Question 49.
What kind of activities can be outsourced in KPO?
Answer:
Research and Development, Legal services, Analytical works, etc.

Question 50.
State two advantages of KPO.
Answer:

1. A business unit can obtain benefit of highly specialized skills and
2. Can pay proper attention to its core activities.

Long Answer Type Questions

Question 1.
Explain the meaning of communication.
Answer:

• The English word communication has been evolved from two Latin words ‘Communis’ which means ‘Common’ or ‘Sharing’ and ‘Communicare’ which means ‘make something common’. With time the meaning of the word communication evolved and it has now become quite comprehensive.
• Primitive man used to communicate through signs and expressions. Later, people created their own local languages for communication which were called ‘dialects’. As civilization progressed people developed languages and ways to communicate. When science and technology emerged it brought several ways to communicate which we all see today.

Communication process:

• Communication is a two-way process. It deals with sending information from a source to a target.
• In this process, the sender collects the information in proper form and then sends it via. a proper medium. On the other hand the receiver of information interprets the information he receives and replies accordingly.
• One can exchange information, concepts, emotions, feelings, instructions, etc. to communicate with other.

We can classify communication in two types. They are:
1. Verbal communication:

• When an information or a message is transmitted using words of any language it is called verbal communication.
• Verbal communication can be either written or oral. In verbal communication one needs to select the words and their proper use in the sentence so as to communicate correctly. While creating a message for communication one should maintain the principle of ‘Keep It Short and Sweet (KISS)’ so that the message can be effective.

2. Non-verbal communication:

• Communication done without using words is called non-verbal communication.
• Non-verbal communication is done with the help of signs, physical expression, posture, facial and eye expressions. It can also be done with the help of music, singing, dancing, sculptures, painting, drawings, maps, paying tribute by firing cannons, blowing sirens and whistles, etc.

Question 2.
State various definitions of communication.
Answer:
Various definitions of communication:

• Communication can be defined as sharing of thoughts, opinions and information through speech, writing or signs.
• Communication is a process of transmitting information related to knowledge, thoughts, concepts, understanding, emotions, feelings and opinions on information through proper medium which can then affect information receiver, change his behavior and establish and maintain relationship with him.
• The process of introducing our thoughts into other’s mind is called communication.

Question 3.
State the advantages of e-commerce.
Answer:
Advantages of e-commerce:

• E-commerce has made buying-selling, delivery of goods and services and making payment quite easy and fast compared to traditional methods of business.
• It saves time and money.
• One can buy-sell goods and services any time and from any place because there is no need of any physical shop.
• Due to e-commerce many works related to marketing, delivery, phone calls, post and printing, etc. have reduced. This has resulted in savings of time, efforts and transportation.
  One gets better and quicker service through e-commerce.
• Communication becomes faster due to internet. As a result, issues of customers related to price, quality, etc. of goods can be solved faster.

Question 4.
Write a short-note on Business to Customer model of e-commerce.
Answer:
Business to Customer (B2C):

• In business to customer (B2C) there exists a seller (businessman) at one end and customers on the other.
• The seller creates its website, puts it on internet and displays the products it sells on that website.
• Thebuyer (customer) sees these products on the seller’s website and if he likes them he places an order on the website itself.
• Once the seller receives the order be sends the product to the customer without the need of any mediator such as wholesaler, retailer, etc.
• Companies like Amazon, Flipkart, etc. provide online shopping facility which is an excellent example of B2C.
• B2C model is quite prevalent due to quick and easy sales and purchase transactions it offers.
  Online banking, railway ticket booking, etc. are other examples.

Question 5.
Write a short note on B2B.
Answer:
Business to Business (B2B):

• In B2B model both the parties are businessman i.e. one businessman sells its product to another.
• For example, a businessman would like to create its website for its customers or would like to design brochures for advertising his products. On the other hand – there is a businessman whose company does the activity of designing websites brochures, etc. for clients.
• When these two businessmen come in contact online we call it Business to Business (B2B) transaction achieved through e-commerce.
• In today’s fast changing world business units are interdependent. They need B2B trading for faster and effective results.
• Through B2B, suppliers, distributors, and other mediators come in contact. Since several businesses provide their services online to other businesses they compete among themselves which results in better products and services. It increases efficiency of routine business activities like that of supply management, inventory management, managing payments, etc.

Question 6.
Write a short note on customer to customer model of e-commerce.
Answer:
Customer to Customer (C2C):
In C2C, a customer directly comes in contact with another customer, without any mediator.

• Any internet user becomes a seller as well as buyer.
• The best example for C2C would be e-bay.com. It is an e-auction website where in a customer (seller) who wishes to sell logs into e-bay website and provide detail about the item and asks interested customers (buyers) to bid. The highest bidder buys that item.
• Other examples are Olx.com, quicker.com where a customer (seller) posts details of the items he wish to sell and interested customer (buyer buys it).

Question 7.
Write a short note on C2B.
Answer:
Customer to Business (C2B):

• In C2B model a consumer let’s say an individual who has something to offer either a service or a good sells it to companies (businesses) and in turn companies pay such customers, for the work they provide. For example, a designer (i.e. a customer) may sell his designs to a garment manufacturing company.
• Since the customer is selling his product or service he decides its price.

Other models in e-commerce:
If we consider government as an autonomous body then we may have following different categories too:
(A) Government to Business
(B) Government to Citizen
(C) Government to Government

Question 8.
State and explain the resources needed for successful implementation of e-commerce business.
Answer:
For a traditional business capital, human resources and machinery may be sufficient at primary stage to set-up a business but in e-commerce one needs other equipment’s and infrastructure too. Some of them are discussed bein’”.
1. Website:

• -» Just like every trader or businessman has a place or address from where he operates his business, a firm trading through e-commerce needs its web address or say a website.
• In the term website, web means WWW (World Wide Web) and ‘site’ means place.
• The firm creates its website and provides its www i.e. world wide web address to customers. Thus, website is the address of a firm at World Wide Web.
• Note that a website is not a physical or geographical location or address but it is a location on the internet which contains one or more web pages providing information to the users.

2. Computer with internet connectivity:

• A person or firm engaged in e-commerce activity need to have a computer with an internet connection for helping and monitoring purchase and sales of products or services on his website.
• The person also needs to conduct several other e-commerce activities on his computer for continuity of his online business.

3. Credit/debit card:

• In e-commerce the buyers and sellers hardly come in contact face to face. Hence, the seller always has a threat if the buyer will pay for his product whereas the buyer has a threat if the seller will send him goods once the payment is made.
• To solve this problem the buyer uses his credit card to make the payment. In case he feels cheated he can ask the bank within 7 days to stop the payment of the seller.
• Thus, cards play a very important role in e-commerce.

Question 9.
Explain the need of a website in e-commerce.
Answer:
Website:

• Just like every trader or businessman has a place or address from where he operates his business, a firm trading through e-commerce needs its web address or say a website.
• In the term website, web means WWW (World Wide Web) and ‘site’ means place.
• The firm creates its website and provides its www i.e. world wide web address to customers. Thus, website is the address of a firm at World Wide Web.
• Note that a website is not a physical or geographical location or address but it is a location on the internet which contains one or more web pages providing information to the users.

Question 10.
In e-commerce, credits cards help to safeguard a buyer. Give reason.
Answer:
Credit/debit card:

• In e-commerce the buyers and sellers hardly come in contact face to face. Hence, the seller always has a threat if the buyer will pay for his product whereas the buyer has a threat if the seller will send him goods once the payment is made.
• To solve this problem the buyer uses his credit card to make the payment. In case he feels cheated he can ask the bank within 7 days to stop the payment of the seller.
• Thus, cards play a very important role in e-commerce.

Question 11.
State the stages through which a person decides to buy or sell a product through e-commerce.
Answer:
Before the buyer actually makes a purchase or a seller wishes to make a sell, both pass through following stages.

Stage 1: Pre-buying/selling stage:

• In this stage, the buyer comes across the product information displayed by the seller on the website.
• If he likes the product he moves to stage 2.

Stage 2: Conditions of buying/selling:
In this stage the buyer studies the conditions put by the seller. The conditions could be related to warranty/guarantee on the product, terms and conditions to be agreed by the buyer, etc.

Stage 3: Delivery of goods and payment:
This stage provides information about the ways in which a buyer can buy a product. For example, one can buy using credit/debit card, internet banking or even cash on delivery method. Except cash on delivery all other modes of payment are quick and easy.

Question 12.
Explain the various modes of payment that a customer can use to buy products online.
Answer:
Mode of payment available in online shopping:
1. Cash on Delivery (COD):
Under Cash on Delivery (COD) mode the customer needs to pay for the product in cash after he receives it.

2. Cheque:

• Under cheque system the seller sends his person at customer’s place to collect the cheque for the order placed.
• The seller then deposits the cheque in his account. Once the cheque gets clear he sends the product to the buyer.

3. Transfer through net banking:

• The banks and seller together provide the facility to the customer for transferring the money into seller’s account using internet banking.
• In this system the seller’s account is linked with our bank’s website. Once the seller gets his money he sends the product.

4. Credit and debit cards:

• Credit and debit cards are also called plastic money. These cards are used quite widely in online shopping.
• While making payment through credit cards the banks provide credit to the buyer which he uses to shop online. The buyer pays to the seller by providing his card details. The bank pays to the seller on behalf of the buyer.
• The bank then adds this amount to the buyer’s account and sends him a statement. The buyer pays to the bank as per the time limit mentioned in the statement.
• If the buyer buys using debit card the amount gets debited from his bank account immediately. The buyer can buy only till the balance is available in his account.

5. Digital cash:

• Digital cash is a system of purchasing cash credit is from the banks, storing the credit in your computer in a banking software and spend while purchasing electronically over the internet. In this sense digital cash is called e-currency and it exists only in the cyber space i.e. the digital world.
• Digital cash is not physical money as we see.
• The customer pays real physical money to the bank to buy digital cash. The bank then provides the buyer e-cash or say, digital cash in the form of credit. Banks provides the software which the buyer needs to install in his computer and use it for making online payment.

Question 13.
Explain cheque and COD system of payment in online shopping.
Answer:
1. Cash on Delivery (COD):
Under Cash on Delivery (COD) mode the customer needs to pay for the product in cash after he receives it.

2. Cheque:

• Under cheque system the seller sends his person at customer’s place to collect the cheque for the order placed.
• The seller then deposits the cheque in his account. Once the cheque gets clear he sends the product to the buyer.

Question 14.
How is payment made using debit card and in online shopping?
Answer:
Credit and debit cards:

• Credit and debit cards are also called plastic money. These cards are used quite widely in online shopping.
• While making payment through credit cards the banks provide credit to the buyer which he uses to shop online. The buyer pays to the seller by providing his card details. The bank pays to the seller on behalf of the buyer.
• The bank then adds this amount to the buyer’s account and sends him a statement. The buyer pays to the bank as per the time limit mentioned in the statement.
• If the buyer buys using debit card the amount gets debited from his bank account immediately. The buyer can buy only till the balance is available in his account.

Question 15.
Mention ways to safeguard ourselves against risks associated with online shopping.
Answer:
One should follow the given precautions to safeguard against risks associated with online shopping:

• The seller should verify customer’s identity and address when he fills the / registration form.
• The customers should purchase from reliable websites only.
• Order history of buyer must be checked.
• One should have proper anti-virus software installed on the computer.
• One should not surf unreliable websites.
• One should be careful while placing information such as e-mail, address, phone number, bank details, password, etc. during online transactions.
• One should provide information only when necessary that too only to reliable websites.

Question 16.
What do you mean by outsourcing? Explain.
Answer:
Outsourcing:

• When a company or individual hands over some of its processes or works to another company or a professional group it is called outsourcing.
• Both the companies sign an agreement and decide the nature of work, payment and its terms, time of delivering the work, etc.
• Outsourcing can be done within the company or with other companies.

Reason for outsourcing the works:

• Large companies outsource small works so that they can focus on main activities of the companies.
  Some companies even outsource their main activities in case they do not have sufficient infrastructure or knowledge to do on their own.
• To save costs.

Examples of outsourcing:
A company may outsource call-center activity, production, marketing activity, product installation, after sales service, Research and Development, Analytical activities, etc.

Question 17.
What do you mean by BPO? Explain.
Answer:
Business Process Outsourcing (BPO):

• When a company hands over its business activities (or processes) on a contractual basis to another company it is called Business Process Outsourcing (BPO). For example, a company would outsource the work of call centre or data entry to reduce its expenditure.
• Outsourcing has become quite popular in recent years because human resource is available at very low rates in populated countries like India and China. Several foreign companies set-up their call centers in these countries to provide sales, after sales, online technical assistance to their customers.

Need of BPO:
1. Cost-cutting:
To save infrastructure set-up and other costs companies outsource their activities like billing, data entry, marketing survey, etc.

2. Focus on principal activities of company:
By outsourcing some activities the senior level employees and managers can focus properly on the core activities of the business.

3. Benefit of efficiency:
By outsourcing to a professional company a business can take benefit of the rich experience and efficiency a professional unit possess. If might be quite difficult or even impossible for the business firm to carry out such outsourced work on its own with such efficiency and expertise.

4. To cater the dynamic demand:
As a nation develops, expectations and demands of customers keep on increasing and changing. It may not be possible to meet the expectations and demands and so it becomes important to outsource some tasks to BPO who can handle such tasks. For example, in olden days companies did not have a large customer-care center which now has become quite important with increased sales through online shopping and expanded market. –

5. Increased benefits:
Business units can outsource few works to their subordinates in order to focus more on important activities like increasing sales, developing new products, expanding business and to serve and satisfy their customers better and thus increase the profits.

Scope of BPO:
The extent to which a company can outsource its work can be classified into two categories. They are:

1. Back-office outsourcing: A company can outsource its back-office works like billing, purchase, data entry, etc.
2. Front-office outsourcing: This includes customer services like sales and marketing, technical assistance, etc.

Question 18.
State the scope of KPO.
Answer:
A company may outsource the following knowledge related processes:

• Business and market researches
• Legal services
• Medical services
• Employee training
• Research and Development (R&D)
• Computer programming like software development, etc.
• Animation and designing

Question 19.
State and explain the need of KPO.
Answer:
Need of Knowledge Process Outsourcing (KPO):
1. Benefit of highly specialized skills attained by KPO:

• An organization providing KPO services invests heavily in training its human resources, developing methods and systems and hence possesses advanced and highly specialized skills.
• As a result KPO units had achieved advance expertise and have rich experience. A business unit can take benefit of such KPO service providers at quite a lower cost compared to the cost incurred on hiring such staff in its own unit.

2. Maximum use of resources:

• It is extremely important that a business unit makes optimum use of its human resource by involving it in core business activities.
• By outsourcing some activities to KPO units the human resources of the business units can be made to focus on customer-related activities.

3. Solution of complex problems:
Some complex business problems which require advanced technical and professional skills can be solved through KPO.

4. Proper attention to principle (core) functions:

• By outsourcing, business units can focus on principle functions i.e. core activities of business.
• For example, if a school outsources its work like computer laboratory set-up and computer education then it can focus in the core activity i.e. teaching.

5. Maximum use of capital:
A business unit can outsource and save its precious capital to use it in important business related functions.

6. Reduce the expenditure:
Decreased expenditure is the principle reason for outsourcing. A business unit ‘ can outsource such activities which otherwise would require a lot of investment and time to set-up on its own.

7. Reduce risks:
Market, competition, government policy and industrial laws keep on changing. Under such situation the need of knowledge related issues like marketing, legal procedures, R&D, etc. also keep on changing. If a company establishes such in-house facilities then it may anytime face a risk of such facilities getting out¬dated. To save itself from such risks it is advisable for a company to outsource.

Question 20.
Differentiate between communication in 20th century and means of communication in 21st century.
Answer:

Communication in 20th century	Communication in 21st century
1. Communication was done using posts, telegrams and telephones to some extent.	1. Modern communication takes place with e mail, mobile phones and internet.
2. Technology was mainly based on telephone lines.	2. Today’s technology is heavily based on fiber optic cables, satellite links, mobile towers and computer networks.
3. Computer was used mainly in government and large organizations that too for limited applications and minimal or no use of internet.	3. Common man now owns personal computers, laptops, mobiles and even tablets to communicate and transact.
4. The purpose of communication was mainly exchanging information.	4. Over and above exchanging information the purpose is also obtaining entertainment, remaining connected socially, sharing text photographs, audio and video, etc.
5. Communication was quite expensive.	5. Communication has become quite cheap.
6. A person might have to move out of his house for communicating with others.	6. A person sitting in his house can communicate with anyone in the world.

Question 21.
Differentiate between traditional business and e-commerce.
Answer:

Traditional business	e commerce
1. Generally, one needs shop, office, godown, etc. at specific location to conduct business.	1. One can do business from anywhere that too without the need of shop, or office, godown, etc.
2. Business can be done even without computer and internet.	2. Business cannot be done without computer and internet
3. One needs a heavy capital investment.	3. E commerce can be done even with quite a less capital investment.
4. Most tradition businesses are confined within the state or country.	4. It is quite easy to do business at international level and so e commerce is not confined by geographical boundaries.
5. The means and speed of communication are slower.	5. Communication is extremely fast.
6. Business transactions are slower.	6. Business transactions are quite fast.

Question 22.
Differentiate between payment modes or Cash on Delivery (COD) and credit and debit cards.
Answer:

Payment through cash on delivery (COD)	Payment through credit and debit card
1. One does not need to have a bank account.	1. Bank account is must for paying with credit/debit cards.
2. There is no risk of bank details getting stolen.	2. Bank details may get hacked.
3. Buyer remains safe as he needs to pay after he receives the product and checks it himself.	3. In case buyer does not receive a product or receives a defective product he faces a risk of losing his money.
4. Seller may not provide COD facility on all products and so the buyer may not be able to buy those products if he does not use other modes of payment.	4. Seller provides credit and debit card facility for every product listed on the website.
5. Credit is not available in this mode.	5. One can buy products on credit.

Question 23.
State two differences between BPO and KPO.
Answer:

BPO	KPO
1. A business unit can outsource any process but, generally those processes that are not the core processes.	1. The business unit outsources only knowledge related processes that require highly specialized skills.
2. For example, a business can outsource telemarketing, data entry, canteen, etc.	2. Legal services, analytical services, Research and Development activities, etc. can be outsourced.

Question 24.
Modern means of communication have become multi-purpose. Give reason.
Answer:

• Traditional equipments used to fulfill only one or two tasks of communication. For example, telephones were used only to make and receive calls, printers were only made to print and televisions were manufactured only for viewing purpose.
• The role modern equipment play has become multifaceted. For example, mobile phones are used for several purposes like calling, SMS, chatting, surfing the internet, gaming, etc.
• Similarly printers are now also used to scan, print, xerox and even fax the documents.
• Televisions are used not only to view but also to surf the internet and obtain information, as hoardings in cafe and restaurants, as a screen to play office presentations, etc.
• Owing to all these reasons one can say that modern means of communication have multipurpose.

Question 25.
E-commerce has motivated small manufacturers. OR E-commerce has given platform to several small manufacturers. Give reason.
Answer:
A businessman who manufactures or trades with traditional modes need to have establishment like a shop, office, etc. needs to do marketing by personally visiting / people and sell its products.

Moreover, it is extremely difficult for him to market across the state or at national and international level.

• The case is quite different in e-commerce. Any person having basic knowledge of computers can start selling his products through e-commerce to anyone in the country or even outside.
• Internet and online shopping websites give him the platform to market his product at every nook and corner of the world.
• On the other hand people largely use internet and e-commerce. They can access websites displaying products even from their mobile phones.
• All these have led even small manufacturers to produce and sell to anyone through e-commerce. Thus, e-commerce has given platform to several small manufacturers.

Question 26.
The business has started making more profits due to e-commerce. Give reason.
Answer:

• In traditional business one needs to have some commercial set-up like shop, office, etc.
• The businessman also needs to have some staff for manufacturing (in case of the manufacturing unit) and some for sales and marketing and distribution too.
• When a person does business through e-commerce he can save expenses of shop or office and even sales and marketing.
• One can start-up the business from home and display his products either on his website or on online shopping websites. By doing so buyers can view the products online and purchase them.
• These activities can save a lot of money and hence increase the profit of business.

Question 27.
A businessman needs to be ethical while selling through e-commerce. Give reason.
OR
One needs to take extra care of customers while selling online. Give reason.
Answer:

• When a customer buys products or services online he does not come in physical contact of the seller.
• The customer looks at product photo and description put by the seller on the website and trusts the seller about quality of the product.
• In such cases there are always chances that a customer may not be able to understand the product or its quality properly.
• There is no verbal communication with the seller and so the customer may miss out some important information that he may obtain while talking to a seller.
• Under such circumstances the seller needs to see that he understand customer requirement, provides sufficient information clearly and also assures him to take the product back or repair it in case of defects in the product.
• Since the customer and seller are unaware of each other and do not meet physically it is extremely important for the online seller to be ethical towards customers.

Question 28.
Outsourcing activities reduce the administrative hassles. Give reason.
OR
A business can grow well if it follows outsourcing. Give reason.
Answer:

• A business has to deal with enumerable tasks on a daily basis. These tasks include production, purchase, sales, marketing, billing, customer care, etc.
• If thought well some of these tasks can be categorized as tasks with lesser priority and others with more priority.
• If a businessman can outsource some of his tasks which are either of lesser priority or which require large investment or specialized skills then he can focus more on other tasks that are directly related to generate revenues for the business. -» For example, maintaining a canteen or call center is tedious and would eat-up important time of business personnels. Outsourcing such activities can save both money and time.

Multiple Choice Questions

Question 1.
From which word is the word ‘communication’ not originated?
(A) Communis
(B) Communic
(C) Communicare
(D) Both (B) and (C)
Answer:
(B) Communic

Question 2.
With reference to communication ‘KISS’ means
(A) Know in short and simple
(B) Keep it short and simple
(C) Keep it short and sweet
(D) Know it soon and straight
Answer:
(C) Keep it short and sweet

Question 3.
Which of the following is verbal communication?
(A) Physical
(B) Map
(C) Facial
(D) SMS
Answer:
(D) SMS

Question 4.
The word ‘inter’ in ‘internet’ refers to
(A) Internal
(B) Intercrossed
(C) Interlinked
(D) Inter-network
Answer:
(A) Internal

Question 5.
You cannot call internet with the name
(A) Net
(B) Cyber space
(C) Information super-highway
(D) Network
Answer:
(D) Network

Question 6.
In CAN, ‘C’ stands for
(A) Corporate
(B) Co-operative
(C) Company
(D) Campus
Answer:
(D) Campus

Question 7.
Which of the following is the largest WAN?
(A) Enterprise WAN
(B) Global WAN
(C) Internet
(D) Metropolitan WAN
Answer:
(C) Internet

Question 8.
Which of the following you cannot share on the internet?
(A) Photograph
(B) Sculpture
(C) Your song
(D) A movie
Answer:
(B) Sculpture

Question 9.
Which of the following is not a browser?
(A) Yahoo
(B) Opera
(C) Mozilla
(D) None of these
Answer:
(D) None of these

Question 10.
_______ is not possible in e-commerce.
(A) Touching the product
(B) Obtaining a physical copy of product description
(C) Knowing the seller
(D) Returning a product
Answer:
(A) Touching the product

Question 11.
Without which of the following you can use e-commerce?
(A) Computer
(B) E-mail
(C) Credit and debit card
(D) All of these
Answer:
(D) All of these

Question 12.
Which of the. following is out of the scope of e-commerce?
(A) C2C
(B) C2D
(C) B2C
(D) B2B
Answer:
(B) C2D

Question 13.
_______ can be called good example of B2C.
(A) Olx.com
(B) Supply management
(C) Amazon
(D) e-bay
Answer:
(C) Amazon

Question 14.
Which is an example of B2B?
(A) Stock management
(B) Online shopping
(C) e-auction
(D) quicker.com
Answer:
(A) Stock management

Question 15.
e-auction is an example of
(A) B2C
(B) C2B
(C) B2B
(D) C2C
Answer:
(D) C2C

Question 16.
You buying a pair of shoes from a website is an example of
(A) C2B
(B) B2B
(C) B2C
(D) C2C
Answer:
(C) B2C

Question 17.
Which of the following is false?
(A) Government to business
(B) Government to service
(C) Government to government
(D) Government to business
Answer:
(B) Government to service

Question 18.
Website Is a/an ___________ of the firm at WWW.
(A) Storage
(B) Address
(C) Contact detail
(D) All of these
Answer:
(B) Address

Question 19.
Which of the following is not an equipment necessary for implementing e-commerce?
(A) Website
(B) Debit and credit card
(C) Computer with internet
(D) None of these
Answer:
(D) None of these

Question 20.
Sign-in into e-commerce also means _____________
(A) Registration
(B) Transacting
(C) Welcome to e-commerce
(D) All of these
Answer:
(A) Registration

Question 21.
Who provides password for online transactions?
(A) www community
(B) Seller’s website
(C) Internet
(D) User
Answer:
(D) User

Question 22.
To buy a product online the buyer adds it to his _______________
(A) Cart
(B) Bag
(C) Box
(D) Kitty
Answer:
(A) Cart

Question 23.
Which facility is not available while shopping online?
(A) Digital cash
(B) Debit card
(C) Paying cash online
(D) Internet fund transfer
Answer:
(C) Paying cash online

Question 24.
Select the odd one out.
(A) COD
(B) Internet bank transfer
(C) Digital cash
(D) Adding to cart
Answer:
(D) Adding to cart

Question 25.
Which is the safest mode of payment in online shopping?
(A) Debit card
(B) Net banking
(C) COD
(D) Digital cash
Answer:
(C) COD

Question 26.
_______ is also called plastic money.
(A) Net banking
(B) Digital cash
(C) Credit card
(D) All of these
Answer:
(C) Credit card

Question 27.
Which currency exists only in cyber space?
(A) Credit card
(B) Digital cash
(C) Cheque
(D) COD
Answer:
(B) Digital cash

Question 28.
To use which mode of payment does a customer need to install an additional software?
(A) Digital cash
(B) Debit and credit cards
(C) Net banking
(D) COD
Answer:
(A) Digital cash

Question 29.
Into how many categories can you classify risks associated with online transactions?
(A) 2
(B) 3
(C) 4
(D) 5
Answer:
(B) 3

Question 30.
In online shopping the customer’s name and address is verified
(A) When he places the order
(B) During delivery
(C) When customer registers on seller’s website
(D) When customer is redirected to payment section
Answer:
(C) When customer registers on seller’s website

Question 31.
Virus is a _______
(A) Preventive tool
(B) Program to track hackers
(C) Computer programme
(D) Both (B) and (C)
Answer:
(C) Computer programme

Question 32.
In BPO, ‘P’ stands for _______
(A) Phase
(B) Parameter
(C) Permissible
(D) Process
Answer:
(D) Process

Question 33.
The chief reason for BPO is _______
(A) Better performance
(B) Focus on core activities
(C) Cheap labour
(D) Avoid small and less important works
Answer:
(C) Cheap labour

Question 34.
Generally, kind of works are given to KPO.
(A) Advanced and specialized skill based
(B) Minor routine
(C) Billing and collection
(D) All of these
Answer:
(A) Advanced and specialized skill based