Please refer to Emerging Modes of Business Class 11 Business Studies Important Questions with solutions provided below. These questions and answers have been provided for Class 11 Business Studies based on the latest syllabus and examination guidelines issued by CBSE, NCERT, and KVS. Students should learn these problem solutions as it will help them to gain more marks in examinations. We have provided Important Questions for Class 11 Business Studies for all chapters in your book. These Board exam questions have been designed by expert teachers of Standard 11.
Class 11 Business Studies Important Questions Emerging Modes of Business
Very Short Answer Type Questions
Question. What does ‘e’ stand for in e-business?
Answer : ‘e’ stands for electronic in 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’
Question. Jyoti wanted to sell her mobile phone but does not get any buyer. On her friends suggestion she posted the mobile on sale on www.olx.com and found a buyer within two days. Name the type of e-business.
Answer : It is a form of C2C commerce. The business originates from the consumer and the ultimate destination is also consumers. This type of commerce is best suited for dealing in goods for which there is no established market mechanism. For example: ebay, quikr etc where consumers sell their goods and services to other consumers. Another technology that has emerged to support C2C activities is that of the payment intermediary
Question. Ram stays in a hostel in USA and his parents stay in Mumbai. Ram’s birthday is in five days and his parents wish to gift him a pair of branded shoes. How can they gift?
Answer : They can use the mode of C@C commerce where the business originates from the consumer and the ultimate destination is also consumers This type of commerce is best suited for dealing in goods for which there is no established market mechanism For example: ebay, quikr etc where consumers sell their goods and services to other consumers. Another technology that has emerged to support C2C activities is that of the payment intermediary. For example: PayPal. Instead of purchasing items directly from an unknown, untrusted seller; the buyer can instead send the money to Pay Pal. From there, PayPal notifies the seller that they will hold the money for them until the goods have been shipped and accepted by the buyer
Question. State an important feature of outsourcing?
Answer : Important feature is Interchangeable or Fungible Activities. Activities which are not differentiable can be outsourced but unique activities can’t be outsourced.
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. What do you mean by –
(i) B2B Commerce
(ii) B2C commerce.
(iii) Intra B-commerce
(iv) C2C commerce
Answer : B2B Commerce
• Both the parties involved in e-commerce transactions are business firms, and, hence the name B2B, i.e., business-to business
• Creation of utilities or delivering value requires a business to interact with a number of other business firms which may be suppliers or vendors of diverse inputs; or else they may be a part of the channel through which a firm distributes its products to the consumers
• B2C (business-to-customers) transactions have business firms at one end and its customers on the other end
• It entails a wide gamut of marketing activities such as identifying activities, promotion and sometimes even delivery of products that are carried out online.
• It enables a business to be in touch with its customers on round-the-clock basis which helps in knowing the customer satisfaction level.
• 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
• The business originates from the consumer and the ultimate destination is also consumers
• This type of commerce is best suited for dealing in goods for which there is no established market mechanism
Question. State three benefits of e-business?
1. 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
2. Flexible Business Hours: Since the internet is always available. E-business breaks down the time barriers that location-based businesses encounter
3. Speed And Efficiency: Online ordering systems can process payments and orders in real-time, usually faster, more accurately and cheaper than human workers
Question. In details explain the features of outsourcing?
Answer : Features 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 skills.
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.
Long Answer Type Questions
Question. Elaborate the steps involved in online trading
Process of Online Trading
• Registration means that you have an ‘account’ with the online vendor.
• Among various details that need to be filled in is a ‘password’ as the sections relating to your ‘account’, and ‘shopping cart’ are password protected
¶ Placing an order:
• You can pick and drop the items in the shopping cart.
• Shopping cart is an online record of what you have picked up while browsing the online store
• After being sure of what you want to buy, you can ‘checkout’
¶ Payment Mechanism:
• Purchases through online shopping may be done in a number of ways:
• Cash-on Delivery: Payment for the goods ordered online may be made in cash at the time of physical delivery of goods.
• Cheque: The online vendor may arrange for the pickup of the cheque from the customer’s end. Upon realisation, the delivery of goods may be made.
• Net-banking Transfer: Modern banks provide to their customers the facility of electronic transfer of funds over the Internet using Immediate Payment Services (IMPS), NEFT and RTGS
• Credit or Debit Cards: Credit card allows its holder to make purchase on credit.
The amount due from the card holder to the online seller is assumed by the card issuing bank, who later transfers the amount involved in the transaction to the credit of the seller. Debit card allows its holder to make purchases through it to the extent of the amount lying in the corresponding account. The moment any
transaction is made, the amount due as payment is deducted electronically from the card.
• Digital Cash: This type of currency has no real physical properties, but offers the ability to use real currency in an electronic format. Like e-wallets , PayTm etc Registrattion
Question. www.olx.in, www.quicker.com etc are examples of websites used to conduct business. Dipti’s sofa set got spoiled in rain. Her friend suggested that she should change the fabric so that it looks new and put it for sale on www.olx.com Dipti followed her friend’s advice and got her sofa repaired so that it looks better and uploaded nicely clicked pictures on www.olx.com in without disclosing the fact that it was damaged from inside. She found a customer and sold it for Rs. 9,000. After one week the buyer found the real state of sofa set and called Dipti but she did not answer any of the call.
(i) Name the type of business in above case.
(ii) Which values did Dipti ignore while selling her sofa set?
(iii) Explain two advantages and disadvantages of e-commerce
i. C2C Commerce business
ii. Dipti gave false information about the product. Due to lack of personal touch one cannot feel the product before buying. They will not be able to check for any default.it lacks credibility
iii. Advantages of e-commerce
1. 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.
2. Flexible business hours: Since the internet is always available. E-business breaks down the time barriers that location-based businesses encounter
Disadvantages of e-commerce
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