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Structure of business - class-XI

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Fast growth plus relatively low market share means that there is still enormous opportunity for new players to outpace traditional industry leaders.

  1. True

  2. False


Correct Option: A
Explanation:

True. 

IF the market is growing fast and the sellers have very low market share then it indicates that there are enormous opportunities for all the new players to compete with the traditional industry leaders and outpace them. 

What are the disadvantages of e-commerce?

  1. Lack of warmth of interpersonal interactions between the seller and the buyer.

  2. Not suitable where the customer requires personalized service.

  3. Security continues to be a problem for online business.

  4. All of the above


Correct Option: D
Explanation:

The disadvantages of e-commerce business includes the lack of interpersonal relations between customers and business enterprise as they don't know about the physical existence of each other and it is not suitable where customer requires personalized services. Security is a main concern in pursuing e-commerce activities.

Benefit(s) of e-commerce is/are ___________.

  1. customers can shop from home or office.

  2. it allows quick response to the queries of customers and other business houses through the internet.

  3. it is easier to launch a new product through the internet

  4. all of above


Correct Option: D
Explanation:

E commerce activities helps in reducing the costs of business transactions as physical stores are not required by an enterprise to function, provides economies of scale that leads to reduction in the price of products and increases the customer satisfaction and maintaining the goodwill of business enterprise.

Benefit(s) of e-commerce is/are __________.

  1. it saves a lot of time, money and energy in receiving orders and executing the same under the traditional mode of commerce

  2. the business firm can get quick supplies from the vendors

  3. for the consumers, the whole world becomes a shop

  4. all of above


Correct Option: D
Explanation:

Buying and selling through internet i.e E commerce activities helps in reducing the costs of business transactions as physical stores are not required by an enterprise to function, provides economies of scale that leads to reduction in the price of products and increases the customer satisfaction and maintaining the goodwill of business enterprise.

Disadvantages of E-commerce in India are:
(i) Internet access is not universally available;
(ii) Credit card payment security is not yet guaranteed;
(iii) Trancstions are de-personalized and human contact is missing;
(iv) Cyber laws are not in place
Select the correct answer from the options given below.

  1. (i) and (ii)

  2. (ii) and (iii)

  3. (i), (ii), (iii)

  4. (i), (ii), (iii), (iv)


Correct Option: C
Explanation:

The drawbacks of e commerce business includes the lack of interpersonal relations between customers and business enterprise as they don't know about the physical existence of each other, internet is not available universally and it is not suitable where customer requires personalized services. Security is a main concern in pursuing e commerce activities.

E - business is____________________________________.

  1. the use of electronic communications for all business processes

  2. an organization using electronic media to purchase from its suppliers

  3. an organization using electronic media to sell direct to its customers

  4. any electronically mediated communication between an organization and its stakeholders


Correct Option: D
Explanation:

E- business is a form of conducting business in which transactions are carried out with the electronically mediated communication like internet, intranet etc. between an organisation and its stakeholders.

E-commerce includes buying and selling of ___________________.

  1. Goods-e.g. digital cameras, music systems, clothes, accessories

  2. Information-e.g. subscription to some law site may give access to some court cases

  3. Services. e.g. matrimonial services through shaadi.com, placement services through naukri.com

  4. All of above


Correct Option: D
Explanation:
E-commerce stands for electronic commerce where the information or trade between two parties are done through electronic transmission of data that includes text, sound and visual images. It makes use of various electronic platforms such as intranets, extranets and  the internet to deal in buying and selling of goods, services and information.

E-commerce includes buying and selling of which of the following:


P) Goods - e.g. digital camera, music system, clothes, accessories.
Q) Information - e.g. subscription to some law site may give access to some court cases.
R) Services - e.g. placement services by naukri.com.

  1. $P-X, Q-X, R- X$

  2. $P-\surd, Q-X, R- \surd$

  3. $P-\surd, Q-\surd, R- X$

  4. $P-\surd, Q-\surd, R- \surd$


Correct Option: D
Explanation:

E-Commerce in India, is the rapidly growing business platform as it includes buying and selling of goods, services and information. Goods and services that includes cameras, clothes, subscription to some law sites, placement services can be purchased and sold through internet. There is nothing in the market that cannot be purchased online.

______ refers to the idea of extracting business intelligence from the competitive web pages.

  1. Web farming

  2. Web theft

  3. Web heating

  4. None of the above


Correct Option: A
Explanation:

Web farms refers to the collection of servers in single location called a data center in order to function as a coordinated group that can be controlled and managed easily. Web farming refers to extracting the idea from the web pages.

Match the following:

Sr. No. List I Sr. No. List II
P B2C commerce  1. Electronic Commerce
Q Selling + customer satisfaction 2. Customers should approach business to buy
R Form of business transactions that is carried out through electronic processing andtransmission of data 3. E-commerce
S Allowing another firm in a foreign market to use technical know-how and trade mark 4. The basic concept of this model  is to sell the product online to the consumers
5. Marketing
6. Franchising
  1. $P-4, Q-5, R-3, S-6$

  2. $P-4, Q-5, R-6, S-3$

  3. $P-4, Q-5, R-6, S-1$

  4. $P-2, Q-5, R-3, S-6$


Correct Option: A
Explanation:
Answer: A
B2C commerce: This basically refers to business to customer where all the customer oriented products and services are provided online to all the customers from most of the business units. 
Selling+customer satisfaction: Marketing is a process that starts with the basic idea of a product, which is developed keeping in mind the customer satisfaction and continues even after the sale of the product by providing the customers with after sale services. 
E- commerce: E-commerce stands for electronic commerce where the information or trade between two parties are done through electronic transmission of data. 
Franchising: It is a farm of ownership parent company(franchiser) allows many firms(franchisee) in the foreign market to use the technical know-how and trade mark of the company to separate the business in agreement for a regular payment at a fixed rate. 

Which type of business can be conducted online _________.

  1. B2B

  2. B2C

  3. C2B

  4. All of the above


Correct Option: D
Explanation:

There are many types of e-commerce activities i.e. business to business (B2B) transactions, Business to Customer, Consumer to Consumer, Consumer to Business(C2B) etc.

_________ model defines the Buyer and Seller as two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler.

  1. B to B

  2. B to C

  3. C to B

  4. C to C


Correct Option: A
Explanation:

Business to business form of e-business includes transactions that takes place between two business enterprises without including customers. For example: Car manufacturing firm can ask for quotation of prices from spare parts manufacturing firm.

Who is called the 'father of email' and is credited with its invention?

  1. Aristotle

  2. Tomlinson

  3. Merriam

  4. None of the above


Correct Option: B
Explanation:

Raymond Samuel Tomlinson was a pioneering American Computer Programmer who implemented the first email program on the ARPANET system. He is internationally known and credited as the inventor of email.

The Tax Collected by E-Commerce Operators from the actual Suppliers of Goods is termed as ___________.

  1. TDS

  2. TCS

  3. Service tax

  4. All of the Above


Correct Option: B

Where buyers decide their own prices, such type of e-commerce is called _______.

  1. B2C

  2. B2B

  3. C2B

  4. None of the above


Correct Option: D
Explanation:

When buyers are carrying out the transactions between them, then this form of e-commerce is known as customer to customer e-business. Here, buyers or consumers communicate with each other on the given platform regarding buying and selling of products.

__________ is a B2B type of trading network that links a particular seller with its own trading partners. 

  1. Search driven network

  2. Private trading network

  3. Virtual network

  4. Catalog drive network


Correct Option: B
Explanation:

B2B is a type of business in which two business firm carries out a transaction without involving any customer. For example: Private trading market is a form of e business in which a particular seller deals with other trading partners.

Parties involved in the electronic transactions are from within a given business firm is known as ____________.

  1. B2B

  2. B2C

  3. C2C

  4. Intra-B


Correct Option: D
Explanation:

Intra-B Commerce refers to the transactions that takes place between the parties or persons who are the part of one firm only. Generally a firm deals with customers, suppliers, employees etc. These are called intra business transactions.

E-mail is commonly known as ______.

  1. E- correspondence

  2. E- communication

  3. Both (A) and (B)

  4. None of the above


Correct Option: C
Explanation:

E - mail is commonly known as E- correspondance and E- communication as email is a medium to exchange ideas, information between people through computing devices for making the communication between them easy.

B2C commerce _______.

  1. includes services such as legal advice

  2. means only shopping for physical goods

  3. means only customers should approach customers to sell

  4. means only customers should approach business to buy


Correct Option: A
Explanation:

B2C commerce means transactions offered by business enterprises directly to customers. It includes services such as legal services and goods like clothes, shoes, camera, other accessories. In these transactions, customer is communicating directly to the business enterprise.

Creation of utilities or delivering value requires a business to interact with a number of other business firms which is known as ___________.

  1. B2B

  2. B2C

  3. G2B

  4. Intra-B


Correct Option: A
Explanation:

Business to Business refers to a situation when one business firm makes a commercial transaction with another firm. For example: a chips manufacturing business enterprise communicates with salt manufacturing business firm so as to deliver its own product in the market.

Business that originates from consumers and the ultimate destination is also consumers is known as ___________.

  1. B2B

  2. B2C

  3. C2C

  4. C2B


Correct Option: C
Explanation:

In consumer to consumer (C2C) form of e-commerce, transactions takes place between the customers. For example: OLX is an application in which one customer uploads a photo of their used product which they want to sell and another person can purchase the product if it matches their requirement.

What if an e-commerce operator having no physical presence in the taxable territory, does not have a representative in the taxable territory?

  1. His will have to discharge his tax liability in foreign currency

  2. He will not be liable to tax

  3. He has to appoint a person in the taxable territory for the purpose of paying tax on his behalf

  4. None of the above


Correct Option: C

The email message should be sent immediately after writing.

  1. True

  2. False

  3. Partly true

  4. None of above


Correct Option: B
Explanation:

It is not necessary to send emails immediately after writing. One can write the email and save it as drafts. Saving as drafts facilitated the editing of messages written if needed for the further use. Emails can be sent anytime without any restriction on time.

Which method is adopted for industrial marketing?

  1. Statistical methods

  2. Sales composite method

  3. User's expectation method

  4. Jury executive opinion method


Correct Option: C
Explanation:

Under the End Use Method, also called as the User Expectation Method, the list of several users of the product under forecasting is prepared first,who are then asked about their individual purchasing patterns and then from such information the complete product demand forecast is ascertained.

Digital products are best suited for B2C e-commerce because they __________________.

  1. Are commodity like products

  2. Can be mass-customized and personalized

  3. Can be delivered at the time of purchase

  4. All of the above


Correct Option: D

When can a supplier making supplies through E-commerce operator opt not to register?

  1. Always

  2. When the e-commerce operator is not required to collect tax at source u/s 52

  3. When the supplier doesn't cross the threshold limit specified under section 22.

  4. Option (b) and (c), cumulatively fulfilled


Correct Option: D

In 1965, the Massachusetts Institute of Technology (MIT) was the first to demonstrate the use of the first email system, known as ___________.

  1. Email

  2. Mailbox

  3. Test mail

  4. Internet


Correct Option: B
Explanation:

The Massachusetts Institute of Technology is a private research university located in Cambridge, United States. In 1965, MIT was the first to demonstrate the use of a first email system, known as Mailbox.

Where buyers name their own prices, such type of e-commerce is called _______.

  1. B2C

  2. B2B

  3. C2B

  4. none of the above


Correct Option: D
Explanation:

E-commerce activity where customers interact or trade with each other without involving any business enterprise. Here, buyers decide their own prices. Companies such as ebay are of e-commerce model.

B2B, B2C,C2B,are the type of ___________.

  1. network marketing

  2. E-commerce

  3. M-commerce

  4. marketing


Correct Option: B
Explanation:

Electronic commerce refers to pursuing commerce activities i.e. buying and selling of goods over an electronic network typically,  internet. These business transactions occur either as business to business transactions, business to consumer transactions, consumer to consumer transactions and customer to business services.

Benefit(s) of e-commerce is/are ___________.

  1. E-commerce enables business firms to reach out to customers all over the world who have an access to internet.

  2. it reduces the cost of business transactions

  3. it increase customer satisfaction

  4. (b) & (c)


Correct Option: D
Explanation:

E commerce activities helps in reducing the costs of business transactions as physical stores are not required by an enterprise to function, provides economies of scale that leads to reduction in the price of products and increases the customer satisfaction and maintaining the goodwill of business enterprise.

The classification of E-commerce domain that involves business activated by the consumer and targeted to businesses is known as _______________.

  1. Business to Consumer (B2C)

  2. Consumer to Business (C2B)

  3. Consumer to Consumer (C2C)

  4. Business to Business (B2B)


Correct Option: B
Explanation:

Consumer to business is a business model in which customer offers some product or services to a business enterprise. For example: when a consumer writes reviews  or when a consumer gives a useful idea for new product development, it comes under C2B form of e business.

The ______ (MIT) was the first to demonstrate the use of the first email system, known as MAILBOX.

  1. Morocco Institute of Technology

  2. Massachusetts Institute of Technology

  3. Manhattan Institute of Technology

  4. Melbourne Institute of Technology


Correct Option: B
Explanation:

The Massachusetts Institute of Technology is a private research university located in Cambridge, United States. In 1965, MIT was the first to demonstrate the use of a first email system, known as Mailbox.

In year ________ email service was being offered in commercial packages and per-minute charges were applicable to those using these services.

  1. 1965

  2. 1985

  3. 1996

  4. 1976


Correct Option: D
Explanation:

Initially, email services were not available freely to the people using it. In 1976, email services was being offered in commercial packages and per - minute charges were applicable to those using theses services.

What began as an _______ experiment in computer communication technology during the cold war has revolutionized the world.

  1. American

  2. German

  3. Indian

  4. None of above


Correct Option: A
Explanation:

Invention of internet has brought a revolution in the world. It started as an experiment in MIT Cambridge, in computer communication technology during the cold war. Now, it has become an important part of our lives, as we are very much dependent on Internet.

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