Chapter 5: Emerging Modes of Business – Class 11 Business Studies Revision Notes, Solved Question

Class 11 Business Studies Notes for Chapter 5: Emerging Modes of Business

Get Class 11 Business Studies Notes, Questions and Practice Papers for Chapter 5: Emerging Modes of Business. Candidates who want to pass Class 11 with a good grade can use this article for Notes, Questions, and Practice Papers. 

We have provided access to the Class 11 Business Studies Notes, Important Questions and Practice Paper on Chapter 5: Emerging Modes of Business. You can practise the questions and check your answers using the solutions provided after each question.

Chapter Definitions and Short Notes

Chapter 5: Emerging Modes of Business – Short Notes and Definitions

 Emerging Trends in Business

Emerging trends reflect fundamental business changes to meet consumer demands and competitive pressures. Technological advances, consumer expectations, and the global economy shape business practices, making trends important. Digitisation, outsourcing, and globalisation dominate business today. E-business involves electronic transactions, communications, and operations.
External providers perform business functions for cost savings or expertise. Internationalisation and globalisation allow businesses to reach global markets and benefit from international trade.
These trends are driven by business needs for efficiency, quality, customer satisfaction, and global reach.

Short Pointers:

  • Digitisation/E-Business: Transition of business processes to digital platforms for enhanced efficiency and reach.
  • Outsourcing: Delegating business functions to external entities to reduce costs and focus on core competencies.
  • Internationalisation/Globalisation: Expanding business operations globally to access new markets and customers.
  • Consumer Expectations: Shift from customer exploitation to customer care, with a focus on quality and competitive pricing.
  • Technological Advancements: Utilisation of emerging technologies to innovate and evolve business practices.
  • Competitive Pressure: Need for businesses to adapt and evolve to stay competitive and meet growing consumer demands.


Electronic business (e-business) involves conducting business via computer networks, especially the internet. It covers industry, trade, and commerce, including production, inventory management, product development, accounting, finance, and human resource management conducted electronically.
E-commerce focuses on online transactions with customers and suppliers, but e-business covers all electronic aspects of a firm’s operations, including internal and external activities. E-business uses digital platforms to improve efficiency, communication, and management in modern organisations.

Short Pointers:

  • E-Business vs. E-Commerce: E-business is a broader concept, including all electronic business activities, while e-commerce specifically deals with buying and selling online.
  • Scope of E-Business: Includes industry, trade, commerce, and internal functions like production and HR management conducted electronically.
  • Digital Platforms: Utilises the internet and private networks for business operations.
  • Enhanced Efficiency: Offers improved management of business functions through digital means.
  • Comprehensive Operations: E-business encompasses a wide array of electronic transactions beyond e-commerce, affecting various sectors of a business.

Scope of E-Business

E-business includes various electronic transactions based on parties and computer network business functions. It falls into three main categories: B2B (Business-to-Business), B2C (Business-to-Customer), and intra-B (Intra-firm Business). E-business includes production, finance, marketing, personnel administration, and managerial tasks like planning, organising, and controlling. Digital platforms help businesses operate more efficiently, reach more markets, and improve internal communication and processes.

Short Pointers:

  • B2B Transactions: Interactions between two business firms, often involving suppliers.
  • B2C Transactions: Direct interactions between a business and its customers, focusing on the delivery of goods and services.
  • Intra-B Transactions: Internal processes within a business, enhancing operational efficiency.
  • Business Functions via E-Business: Includes production, finance, marketing, personnel administration, and managerial tasks.
  • Digital Platforms: Facilitates various types of transactions and business operations, promoting efficiency and global reach.

B2B Transactions:

B2B (Business-to-Business) transactions are electronic commerce between businesses. This includes sourcing inputs from suppliers and vendors and distributing products to consumers. B2B commerce uses computer networks for ordering, production monitoring, component delivery, and payments, improving manufacturing and distribution. An assembly factory in the auto industry may work with multiple component vendors, some of whom are overseas.
The factory uses electronic systems to place orders, track deliveries, and manage inventory, including dealer-taken custom orders for personalised manufacturing. E-commerce, especially B2B, began by exchanging commercial documents like purchase orders and invoices using Electronic Data Interchange (EDI) technology to speed up information flow, document transfer, and financial transactions.

Short Pointers:

  • Definition: B2B transactions involve electronic business dealings between two companies.
  • Purpose: Facilitates sourcing of inputs, monitoring of production and delivery, and management of distribution channels.
  • Technology: Utilises computer networks, including the internet and EDI, for efficient communication and operations.
  • Example: Automobile manufacturing, where a factory interacts with multiple vendors for components and manages distribution electronically.
  • Evolution: Originated from the use of EDI for commercial document exchanges, expanding to comprehensive electronic commerce activities.

B2C Transactions:

B2C transactions are electronic interactions between businesses and consumers. Mostly electronic retailing, this aspect of e-business allows businesses to communicate with customers. B2C transactions include selling, distributing, surveying consumers, providing after-sales service, promoting, and delivering goods.
ATMs, where banks (the business) meet customers’ cash withdrawal needs, are B2C transactions. B2C commerce includes product customisation, customer service, and other marketing activities facilitated by e-commerce at lower costs and faster speeds. Modern consumers want personalised service and 24/7 customer engagement, so this type of e-commerce meets their needs.

Short Pointers:

  • Definition: B2C transactions involve direct electronic dealings between businesses and consumers.
  • Activities: Include selling, surveys, service, promotions, and delivery.
  • Continuous Communication: Enables 24/7 interaction with customers.
  • Beyond Selling: Encompasses all marketing activities, from product identification to post-sale satisfaction.
  • Customer Personalization: Facilitates tailor-made products and services for individual consumer needs.
  • ATM Use: A visible example of B2C transactions.
  • E-Commerce Efficiency: Offers cost-effective and speedy execution of marketing and sales activities.

Intra-B Transactions:

Intra-B (Intra-Business) transactions enable departmental communication and operations within a company. This internal commerce uses intranets to improve organisation-wide coordination and efficiency. Intra-B transactions streamline inventory, cash, plant and machinery use, customer orders, and human resource management.
B2E (Business-to-Employee) commerce—recruitment, training, and inventory access—is also part of Intra-B commerce. Intra-B commerce enables flexible manufacturing, customer customisation, and better decision-making through multimedia and graphic communication between organisational units. VPN technology enables online meetings and real-time information sharing for remote workers.

Short Pointers:

  • Definition: Electronic interactions within a business organisation to improve internal operations.
  • Technologies Used: Intranets and VPNs facilitate internal communication and remote work.
  • Benefits: Includes efficient inventory management, improved plant utilisation, effective order handling, and HR management.
  • B2E Commerce: Interaction between a business and its employees for recruitment, training, and operational support.
  • Enhanced Coordination: Facilitates better coordination and decision-making within the organisation.
  • Remote Work Support: Enables employees to work from anywhere, enhancing flexibility and efficiency.

 C2C Commerce:

C2C (Consumer-to-Consumer) e-commerce involves direct consumer transactions via an online platform. This model is ideal for trading used books or clothing without a formal market, allowing people worldwide to find buyers and sellers.
In addition to transaction security, eBay’s rating system for buyers and sellers promotes transparency and trust. Payment intermediaries like PayPal protect both parties by holding funds until transaction terms are met.
C2C commerce also encourages consumer forums and pressure groups to share experiences and influence business practices or solve problems. This shows the versatility and breadth of e-business applications and how digital platforms enable direct consumer interactions and community building.

Short Pointers:

  • Definition: Direct transactions between consumers via digital platforms.
  • Ideal For: Trading goods without established markets.
  • Security Mechanisms: Rating systems and payment intermediaries like eBay and PayPal.
  • Community Building: Formation of consumer forums and pressure groups.
  • Transparency and Trust: Rating systems allow insight into sellers’ reliability.
  • Problem Resolution: Community pressure can lead to issue resolution.
  • Versatility of E-Business: C2C commerce showcases the diverse applications of e-business.

Business to Employee (B2E) Commerce

B2E (Business to Employee) commerce involves companies using electronic platforms to manage employee processes. This includes digital hiring, interviewing, selection, training, development, and education. B2E commerce gives employees electronic catalogues, ordering forms, and inventory information to better serve customers. This approach simplifies HR processes and empowers employees with tools and information to improve customer service and operational efficiency.

Short Pointers:

  • Definition: Digital interactions between businesses and their employees.
  • HR Processes: Includes recruitment, training, and development activities conducted online.
  • Employee Empowerment: Access to electronic catalogues and inventory information for better customer interaction.
  • Efficiency: Streamlines HR processes and enhances operational effectiveness.

E-Business versus Traditional Business

E-enabling technologies have transformed business practices into e-business. Traditional business uses paper records, physical transactions, and retail spaces. E-business uses digital platforms for transactions, electronic records, and virtual spaces to operate 24/7 worldwide without physical location or business hours.
Comparative analysis shows that e-business has advantages like wider reach, efficiency, and better customer service, but it also has drawbacks like security issues and digital lack of personal touch.

Short Pointers:

  • Traditional Business: Involves physical interactions, paper records, and physical retail spaces.
  • E-Business: Uses digital platforms for transactions, electronic records, and operates virtually.
  • Advantages of E-Business: Wider reach, operational efficiency, and 24/7 global access.
  • Limitations of E-Business: Security concerns and lack of personal interaction.

Benefits of E-Business

E-business, enabled by internet technology, offers many advantages over traditional business models, including ease of formation with lower investment, 24/7 operation, faster transactions, global reach for sellers and buyers, and a significant move towards a paperless society. The internet has democratised business operations, allowing large and small businesses to network without a large net worth.
E-business allows 24/7/365 transactions with a click, reducing demand fulfilment cycle times. It opens global markets for businesses and gives consumers a wide range of global products. E-business practices reduce paperwork, simplifying processes like filing returns, obtaining permissions, and making and receiving payments, creating a more efficient, environmentally friendly paperless society.

Short Pointers:

  • Lower Investment & Ease of Formation: E-business can be started with minimal investment and a simpler setup compared to traditional businesses.
  • 24/7/365 Convenience: Allows businesses and consumers to engage in transactions at any time.
  • Increased Speed: Facilitates instant transactions and information exchange, reducing cycle times.
  • Global Reach: Opens up worldwide markets for businesses and provides consumers with a broader selection of products.
  • Paperless Society: Reduces reliance on paper, streamlining administrative processes and contributing to environmental conservation.

Please log in to view this content.

NCERT Solutions

NCERT Solutions for Class 11 Business Studies – Chapter 5: Emerging Modes of Business

 Short Answer Questions

  1. State any three differences between e-business and traditional business.

Answer: In comparing e-business and traditional business, several key differences emerge based on formation, setting up costs, and risk factors. Firstly, e-business is considerably easier to form than traditional business, which often involves a lengthy and complicated process. This simplicity in e-business formation stems from the digital nature of its setup, requiring less physical infrastructure. Secondly, the setting up cost for e-business is nominal compared to the huge expenses associated with establishing a traditional business. This difference is primarily due to the reduced need for physical premises and infrastructure in e-business. Lastly, e-business carries a higher risk compared to traditional business due to the lack of direct contact between parties. In contrast, traditional business typically involves personal interactions, which can mitigate some risks associated with transactions.

Mindmap to remember this answer:

  • Formation Differences: E-business: Easy to form. Traditional Business: Lengthy, complex process.
  • Cost of Setup: E-business: Nominal costs. Traditional Business: High costs due to physical infrastructure.
  • Risk Factors: E-business: Higher risk (no direct contact). Traditional Business: Lower risk (personal interaction).
  1. Describe briefly any two applications of e-business.

Answer: Two notable applications of e-business include e-Procurement and e-Communication/e-Promotion.

First, e-Procurement revolutionises how business transactions occur between firms through the internet. It features innovative methods such as reverse auctions, allowing a single business buyer to interact with multiple sellers, and digital marketplaces that enable trading among various buyers and sellers. This method streamlines transactions and enhances efficiency across the business spectrum.

Second, e-Communication/e-Promotion extensively utilises digital tools to boost marketing and communication efforts. This includes the use of emails, online catalogues, advertisements like banners and pop-ups, and engaging customers through opinion polls and surveys. Additionally, it facilitates virtual meetings and conferences using video conferencing technologies, making interactions more dynamic and far-reaching.

Mindmap to remember this answer:

  • e-Procurement: Internet-based transactions, Reverse auctions, Digital marketplaces, Streamlines business transactions
  • e-Communication/e-Promotion: Emails and online catalogues, Digital advertising (banners, pop-ups), Customer engagement (polls, surveys), Video conferencing for meetings
  1. Describe briefly the data storage and transmission risks in e-business.

Answer: In e-business, data storage and transmission face several risks that can jeopardise the security and integrity of information. One major risk is the theft or manipulation of data stored in computer systems, often driven by selfish motives. Threats like viruses, known as Vital Information Under Siege (VIRUS), and hacking are common challenges in this domain. Viruses can replicate themselves in other computer systems and cause varying degrees of disruption, from minor annoyances to severe system damage.

To counter these threats, businesses can implement several security measures. Installing and regularly updating antivirus software helps protect data from virus attacks. Additionally, the use of cryptography ensures the security of data during transmission. This technique encrypts data into an unreadable format, which can only be deciphered by someone with the correct decryption key, thus safeguarding sensitive information from interception and unauthorised access.

Mindmap to remember this answer:

  • Key Threats: Data theft, Data manipulation, VIRUS (Vital Information Under Siege), Hacking
  • Security Measures: Antivirus software, Regular updates, Cryptography, Data encryption, Secure transmission

Long Answer Questions

  1. Why are e-business and outsourcing referred to as the emerging modes of business? Discuss the factors responsible for the growing importance of these trends.

Answer: E-business and outsourcing are referred to as “emerging modes of business” because they represent significant changes in how business operations are conducted. These modes are increasingly relevant and are expected to continue growing due to several key factors.

Firstly, there is a continuous evolution in business practices as managers and thinkers develop newer and more efficient methods. This evolution is driven by the need to enhance business processes across various departments including marketing, finance, and production.

Secondly, the competitive business environment compels firms to enhance their capabilities in creating and delivering value. This is crucial for sustaining business growth and meeting increasing consumer demands, which are characterised by a desire for higher quality, lower prices, faster delivery, and improved customer service.

Lastly, the integration of emerging technologies into business operations is essential for staying relevant and competitive. These technologies facilitate more efficient operations and open new avenues for conducting business, such as through digital platforms and automated systems.

Mindmap to remember this answer:

  • Emerging Trends: E-business, Outsourcing
  • Key Drivers: Evolution of business practices, Need for enhanced efficiency, Competitive pressures
  • Consumer demands: Higher quality, Lower prices, Faster delivery, Better service
  • Role of Technology: Facilitates new business methods, Supports global and remote operations

  1. Elaborate the steps involved in on-line trading.

Answer: Online trading involves several key steps that ensure a secure and efficient transaction process over the internet. Here’s how it typically works:

  • Registration: The first step is to register with an online vendor. This involves filling out a registration form to create an account. During this process, you must choose a secure password to protect your account and personal information.
  • Placing an Order: Once registered, you can browse the vendor’s website and select items you wish to purchase. These items are added to a virtual ‘shopping cart.’ This cart keeps a record of your selections as you continue shopping. When you are ready to finalise your purchase, you proceed to the ‘checkout’ where you review your items and confirm your order.
  • Payment Mechanism: The final step involves choosing a payment method to complete the transaction. Options typically include:
    • Cash on Delivery (CoD): You pay for the goods when they are delivered.
    • Cheque: You can opt to pay by cheque, where the goods are delivered once the cheque is processed.
    • Net-banking Transfer: Direct transfer of funds from your bank account using services like IMPS, NEFT, or RTGS.
    • Credit or Debit Cards: These are common for online purchases, providing a secure way to transact.
    • Digital Cash or Smart Card: These methods use preloaded funds or digital currency for transactions.

These steps encompass the essential phases of online trading, from account creation and product selection to payment and order confirmation.

Mindmap to remember this answer:

  • Online Trading Steps: Registration (Account creation, secure password), Placing an Order (Browsing, selecting items, using a shopping cart, checkout), Payment Mechanism (Options include CoD, cheque, net-banking, credit/debit cards, digital cash).
  1. Evaluate the need for outsourcing and discuss its limitations.

Answer: Outsourcing is increasingly adopted by businesses to focus on core competencies, achieve excellence, reduce costs, and foster growth through alliances. It also plays a significant role in stimulating economic development in host countries by creating jobs and fostering entrepreneurship.

  • Focused Attention: By outsourcing non-core activities, businesses can concentrate resources on areas of core competency, which enhances efficiency and effectiveness.
  • Quest for Excellence: Outsourcing allows companies to achieve excellence by focusing narrowly and letting specialised firms handle other functions, thereby improving overall service quality.
  • Cost Reduction: In competitive global markets, maintaining product quality while reducing prices is crucial. Outsourcing facilitates this by minimising costs.
  • Growth through Alliance: Outsourcing reduces capital requirements and fosters inter-organisational learning and knowledge sharing, which supports business growth.
  • Economic Development: It promotes entrepreneurship, employment, and exports in host countries, contributing to their economic growth.

However, outsourcing has its limitations:

  • Confidentiality Risks: Sharing sensitive information with third parties can lead to breaches, potentially harming the original company.
  • Sweat-Shopping: Often, outsourcing exploits low-cost labour in host countries, which doesn’t necessarily build local competence or capability.
  • Ethical Concerns: There are ethical issues, such as the use of child labour or poor working conditions in factories in developing countries.
  • Resentment in Home Countries: Outsourcing can lead to job losses in the home country, creating economic and social dissatisfaction.

These factors make outsourcing a complex decision that requires balancing potential benefits against the ethical, social, and economic impacts.

Mindmap to remember this answer:

  • Needs for Outsourcing: Focus on core areas, Pursuit of excellence, Cost efficiency, Growth and alliance, Economic stimulation
  • Limitations of Outsourcing: Confidentiality issues, Exploitation of labour, Ethical concerns, Job loss and resentment

Please log in to view this content.

MCQ Questions

Chapter 5: Emerging Modes of Business – MCQ Questions

  1. What is e-business primarily characterised by?
A) Physical transactionsB) Face-to-face interactions
C) Electronic transactionsD) Cash-only transactions

Answer: C) Electronic transactions

  1. Which of the following is NOT a component of e-business according to the text?
A) e-commerceB) Inventory management
C) Paper cataloguesD) Product development

Answer: C) Paper catalogues

  1. B2B e-commerce is characterised by transactions between:
A) A business and its individual customersB) Two or more businesses
C) Consumers selling directly to other consumersD) Government entities and businesses

Answer: B) Two or more businesses

  1. Which form of e-commerce involves businesses interacting directly with the end consumers?
A) B2BB) B2C
C) C2BD) C2C

Answer: B) B2C

  1. What does the textbook suggest about the nature of C2C commerce?
A) It involves government-to-consumer interactions.B) It is focused solely on cash transactions.
C) It includes interactions where both parties are consumers.D) It exclusively uses non-digital payment methods.

Answer: C) It includes interactions where both parties are consumers.

  1. According to the text, what major advantage does e-business have over traditional business?
A) Limited global reachB) 24/7 operational capability
C) High need for physical spaceD) Requires more paperwork

Answer: B) 24/7 operational capability

  1. What is identified as a limitation of e-business in the text?
A) High personal touchB) Quick delivery of physical products
C) Low personal touchD) Reduced operational hours

Answer: C) Low personal touch

  1. Which technology originally facilitated B2B transactions, as mentioned in the textbook?
A) Social mediaB) Electronic Data Interchange (EDI)
C) Digital CashD) Secure Sockets Layer (SSL)

Answer: B) Electronic Data Interchange (EDI)

  1. What role does “digitisation” play in modern businesses according to the textbook?
A) Decreases the efficiency of business processesB) Transforms content into digital formats that can be easily transmitted
C) Reduces the global reach of a businessD) Increases the need for physical stores

Answer: B) Transforms content into digital formats that can be easily transmitted

  1. According to the textbook, what is the primary distinction between e-business and e-commerce?
A) E-commerce involves financial transactions onlyB) E-business excludes online marketing
C) E-business encompasses a broader range of electronic transactions beyond buying and sellingD) E-commerce does not use the internet

Answer: C) E-business encompasses a broader range of electronic transactions beyond buying and selling

  1. What is a significant benefit of e-business in terms of global operations, as outlined in the textbook?
A) Limited access to international marketsB) High transportation costs
C) Access to global markets without physical presenceD) Requirement for multiple physical warehouses

Answer: C) Access to global markets without physical presence

  1. Which of the following best represents “Intra-B commerce” as described in the textbook?
A) Transactions between different companiesB) Internal transactions within a company using intranet
C) Direct sales from businesses to consumersD) International commerce between businesses

Answer: B) Internal transactions within a company using intranet

Please log in to view this content.

Very Short Answer Type Questions

Chapter 5: Emerging Modes of Business – Very Short Answer Type Questions

  1. What is the term ‘mode of business’?

Answer: Mode of business refers to current methods of conducting business operations and trends.

  1. Define e-business.

Answer: E-business is conducting industry, trade, and commerce using computer networks like the internet.

  1. What does e-commerce entail?

Answer: E-commerce involves online transactions between businesses and customers using the internet.

  1. Differentiate between e-business and traditional business.

Answer: E-business uses digital platforms for all functions; traditional business uses physical locations.

  1. What are the three strong trends shaping business today?

Answer: The three strong business trends are digitisation, outsourcing, and globalisation.

  1. What is the role of digitisation in business?

Answer: Digitisation converts business processes to digital formats, improving efficiency and reach.

  1. How does outsourcing contribute to modern business practices?

Answer: Outsourcing helps businesses focus on core activities by delegating secondary tasks externally.

  1. What is meant by the ‘internationalisation and globalisation’ of business?

Answer: Internationalisation and globalisation expand business operations and influence across countries.

  1. Explain the concept of B2B in e-commerce.

Answer: B2B in e-commerce refers to online transactions and interactions between businesses.

  1. What is involved in B2C commerce?

Answer: B2C commerce involves electronic transactions between businesses and individual customers.

  1. Describe the role of intra-B commerce within a company.

Answer: Intra-B commerce manages internal business processes electronically within the company.

  1. What are the potential risks associated with online transactions?

Answer: Online transaction risks include fraud, data breaches, and payment security issues.

Please log in to view this content.

Short Answer Type Questions

Chapter 5: Emerging Modes of Business – Short Answer Type Questions

  1. Define the term ‘mode of business’ as discussed in the textbook.
    Answer: The term ‘mode of business’ refers to the various ways businesses operate. The textbook emphasises that these modes are influenced by current trends such as digitisation, making them dynamic and continually evolving to adapt to new technological advancements.
  2. What are the three main trends shaping business today according to the chapter? According to the chapter, the three main trends shaping business today are digitisation, outsourcing, and globalisation. These trends are transforming how businesses operate and compete on a global scale.
  3. Explain the concept of digitisation in the context of business.
    Answer: Digitisation in business refers to the conversion of information into a digital format. This process enables easier management, storage, and transmission of data, leading to more efficient business operations and communication.
  4. Define e-business and differentiate it from e-commerce.
    Answer: E-business involves conducting various business processes such as production, inventory management, and customer service online. E-commerce, a subset of e-business, specifically refers to buying and selling goods and services over the internet.
  5. What are the different types of electronic transactions highlighted in the chapter?
    Answer: The chapter highlights three types of electronic transactions: Business to Business (B2B), Business to Consumer (B2C), and Intra-Business (Intra-B). These transactions involve different stakeholders and serve various aspects of business operations.

  1. Describe the B2B commerce model.
    Answer: B2B commerce involves transactions between two businesses. It focuses on providing goods and services needed for production, such as raw materials or manufacturing components, facilitated by digital networks to streamline processes.
  2. What does B2C commerce encompass and how does it differ from traditional commerce?
    Answer: B2C commerce involves businesses selling directly to consumers primarily online, enhancing convenience, customisation, and constant communication. Unlike traditional commerce, B2C allows for personalisation and faster service delivery through digital means.
  3. Discuss the role and significance of intra-B commerce within a company.
    Answer: Intra-B commerce refers to electronic transactions within a single company. It plays a critical role in enhancing internal communication, coordination, and efficiency across various departments such as production, sales, and human resources.
  4. How does B2C commerce enhance customer interaction and satisfaction?
    Answer: B2C commerce boosts customer interaction and satisfaction by providing personalised services, quick response times, and 24/7 accessibility, which are facilitated by digital platforms and online customer service tools.
  5. Explain the concept of C2C commerce and its implications for consumer interactions.
    Answer: C2C commerce allows consumers to sell goods and services to each other through online platforms like eBay, enhancing the reach and security of transactions among consumers by providing a structured and trustworthy environment.

Please log in to view this content.

Case Based Questions

Chapter 5: Emerging Modes of Business – Case Based Questions

 Case: 1. Rajat, a recent MBA graduate from IIM Allahabad, is determined to set up his own e-business selling high-end men’s accessories, against his father’s advice to open a traditional retail shop.


  1. Discuss the potential benefits Rajat might explain to his father about choosing e-business over traditional retail based on the provided textbook content on e-business benefits.

Answer: Rajat could explain that e-business offers lower startup costs, broader global reach, and operates 24/7, allowing for greater flexibility and convenience for customers. It also supports quicker responses to market changes and customer needs compared to traditional retail.

  1. How might Rajat address his father’s concerns regarding customer interaction and personal touch in an e-business setting, considering the limitations of e-business mentioned in the textbook?

Answer: Rajat might address these concerns by implementing interactive features like live chat support, personalised recommendations, and customer reviews on his website to enhance personal touch and interaction, countering the typical low personal touch of e-business.

  1. Considering Rajat’s business plan, evaluate how the scope of e-business, as defined in the textbook, supports his decision for an online venture focusing on men’s accessories.

Answer: The textbook defines e-business as inclusive of various business functions electronically, including sales and customer service. This supports Rajat’s plan as it allows targeting specific customer segments globally with detailed product offerings, streamlined through digital platforms.

  1. Analyse the impact of global reach and 24/7 operation capability of e-business on Rajat’s potential business model. How could these factors influence his business success compared to a traditional retail setup?

Answer: Global reach and 24/7 operations enable Rajat to serve customers across different time zones without the limitations of physical store hours, potentially increasing sales. These aspects of e-business can lead to a larger customer base and higher revenue than a traditional retail setup.

  1. Rajat is concerned about the security risks associated with e-business. What measures can he implement to mitigate these risks according to the textbook?

Answer: To mitigate security risks, Rajat can implement secure payment gateways, use SSL certificates for encrypting data, and ensure compliance with e-commerce security standards. Regular updates and security audits can further protect against potential cybersecurity threats.

Case 2. Rekha, visiting her friend Rita in Delhi, learns about the convenience of online shopping as they prepare to shop past midnight.

Please log in to view this content.

Value Based Questions

Chapter 5: Emerging Modes of Business – Value Based Questions

  1. Ethical Business Practices in E-Business:

“An online retailer uses data analytics to understand consumer behaviour and enhance user experience. Discuss the ethical implications of using consumer data in e-business. What values should companies uphold to ensure the ethical use of data?”

Answer: The use of consumer data in e-business can be a double-edged sword. Ethically, it’s crucial to handle this data with respect, ensuring privacy and security. Companies must uphold values such as transparency, where they openly communicate what data is collected and how it’s used. Integrity is also key, ensuring that data isn’t used deceitfully. Ultimately, respecting consumer privacy and using data responsibly reflects a company’s commitment to ethical business practices, fostering trust and loyalty among users.

  1. Sustainable Business Models:

“Considering the benefits of e-business such as reduced paper use and global reach, discuss how e-business models can contribute to environmental sustainability. What values are promoted through these sustainable practices?”

Answer: E-business models support environmental sustainability by reducing the need for physical materials and minimising waste, which promotes the value of environmental consciousness. By leveraging digital platforms, businesses can reach a wider audience without the excessive use of resources, thereby promoting sustainability. Such practices not only help in conserving the environment but also encourage a culture of responsibility and innovation within the business sector.

  1. Inclusivity in E-Commerce:

“E-commerce has enabled businesses to reach a global market. Discuss the value of inclusivity in e-business. How can companies ensure that their e-commerce platforms are accessible to differently-abled individuals?”

Answer: Inclusivity in e-commerce enhances the accessibility of products and services to a broader range of people, including those differently-abled. Companies can embody the value of equality by designing user-friendly, accessible platforms. This involves implementing features like screen readers and alternative text for images. Promoting inclusivity not only broadens the customer base but also reflects a commitment to equal opportunities for all, reinforcing a positive company image.

  1. Corporate Responsibility:

“A company uses its e-commerce platform to sell products that support local artisans. What values does this business model promote? How does supporting local artisans through e-commerce contribute to the company’s corporate social responsibility?”

Answer: Supporting local artisans through e-commerce platforms promotes values such as community support and economic empowerment. By providing a marketplace for local products, companies enhance their corporate social responsibility and contribute to sustainable economic development. This approach not only helps preserve local crafts and cultures but also builds a community-centred brand identity that resonates with socially conscious consumers.

Please log in to view this content.

Long Answer Type Questions

Chapter 5: Emerging Modes of Business – Long Answer Type Questions

  1. Explain the concept of digitisation and its impact on modern business practices. Discuss how this trend is reshaping the way businesses operate and the long-term implications for the industry.

Answer: Digitisation refers to transforming various forms of information into digital formats, including text, images, sounds, and video, which can be easily transmitted and processed electronically. This trend has significantly impacted modern business practices by enabling faster and more efficient operations. In the realm of business, digitisation has led to the emergence of e-business, where transactions and business functions are conducted over digital networks, primarily the internet. This shift allows businesses to operate continuously, reaching a global market without the physical limitations of traditional business models. The long-term implications include increased competition, a need for businesses to innovate continually, and a shift towards more customer-focused services. Additionally, digitisation has contributed to the creation of new business models and strategies, further enhancing productivity and efficiency in the business landscape.

Mindmap to remember this answer:

  • Digitisation Definition: Conversion to digital format
  • Impact: Speed, efficiency
  • E-business Emergence: Transactions over the internet
  • Long-term Effects: Global reach, innovation necessity
  • Benefits: Increased competition, focus on innovation and customer services
  1. Discuss the role of outsourcing in contemporary business environments. Analyse how outsourcing contributes to business efficiency and the types of services commonly outsourced by modern businesses.

Answer: Outsourcing is the business practice of hiring external firms to perform services or create goods that were traditionally performed in-house. This approach is crucial in contemporary business environments as it allows companies to focus on their core competencies while external specialists handle non-core activities. Commonly outsourced services include customer support, human resources, IT management, and manufacturing. Outsourcing contributes to business efficiency by reducing costs, improving service quality, and enabling faster scaling of operations. It also allows businesses to access global talent and the latest technologies without significant investments, thereby enhancing overall productivity and competitiveness.

Mindmap to remember this answer:

  • Outsourcing Definition: Hiring external services
  • Common Services: IT, HR, customer support
  • Benefits: Cost reduction, focus on core, access to global talent
  • Efficiency: Improved quality, scalability
  1. Elaborate on the distinction between e-business and e-commerce as outlined in the textbook. Provide examples to illustrate how both forms are integrated within a business’s operations and their significance in today’s economic landscape.

Answer: E-business and e-commerce, while often used interchangeably, have distinct definitions. E-business encompasses the broader spectrum of conducting business functions and transactions electronically across various platforms, including the internet. It includes activities such as production, inventory management, product development, and customer service. On the other hand, e-commerce specifically refers to the process of buying and selling goods and services over the internet. E-business is integral to modern operations as it enhances efficiency, reduces costs, and allows for seamless integration of business processes. Examples include online retailing (e-commerce) and automated inventory management (e-business component).

Mindmap to remember this answer:

  • E-business vs. E-commerce: E-business is broader
  • E-business Includes: Production, management
  • E-commerce: Buying and selling online
  • Examples: Online retail, automated inventory

  1. Describe the scope of e-business according to the textbook. How does it extend beyond simple electronic transactions to encompass various business functions and managerial activities?

Answer: The scope of e-business is extensive, encompassing various business functions and managerial activities conducted over computer networks. It goes beyond simple electronic transactions to include activities such as production planning, marketing, finance, and human resource management. E-business allows for the integration of these functions across a unified platform, enhancing communication, coordination, and efficiency within an organisation. This broad scope enables businesses to manage their operations more effectively and respond more quickly to market changes and consumer demands, illustrating the transformative impact of digital technologies on business operations.

Mindmap to remember this answer:

  • Scope: Extensive, includes various functions
  • Activities: Planning, HR, finance, marketing
  • Benefits: Efficiency, coordination, quick response
  • Impact: Enhanced management, market adaptability
  1. Analyse the different types of electronic transactions described in the chapter, namely B2B, B2C, and intra-B. Discuss the characteristics and significance of each type in the context of modern business operations.

Answer: Electronic transactions are essential components of e-business, classified primarily into B2B, B2C, and intra-B interactions. B2B (Business-to-Business) involves transactions between companies, such as supply chain operations and bulk transactions. B2C (Business-to-Consumer) refers to the direct selling of products and services to consumers, typically through online platforms. Intra-B transactions occur within a company, facilitating internal management processes such as inventory control and employee services. Each type plays a critical role in modern business by streamlining processes, reducing costs, and enhancing speed and accuracy in operations.

Mindmap to remember this answer:

  • Types of Transactions: B2B, B2C, Intra-B
  • B2B: Inter-company, supply chain
  • B2C: Direct to consumer, online sales
  • Intra-B: Internal processes, management
  • Benefits: Efficiency, cost reduction, speed

Please log in to view this content.

Sample Questions Paper

Chapter 5: Emerging Modes of Business – Sample Questions Paper

Sample Questions: 1

Time allowed: 2 hours Maximum Marks: 40

General Instructions:

  1. The question paper contains 14 questions.
  2. All questions are compulsory.
  3. Section A: Question numbers 1 and 2 are 1 mark source-based questions. Answer to these questions must not exceed 15 words.
  4. Section B: Question numbers 3 to 9 are 2 marks questions. These are very short answer type questions. Answers should not exceed 30 words.
  5. Section C: Question numbers 10 to 12 are 4 marks questions. These are short answer type questions. Answers should not exceed 80 words.
  6. Section D: Question numbers 13 and 14 are 6 marks questions. These are long answer type questions. Answers should not exceed 200 words.

Section A

  1. State the three strongest trends that are shaping business currently. (1 mark)
  2. What is the difference between e-business and e-commerce? (1 mark)

Section B

  1. What does the prefix ’emerging’ signify with respect to modes of business? (2 marks)
  2. Briefly explain the concept of B2B commerce. (2 marks)
  3. What is C2C commerce? Give an example. (2 marks)
  4. State two benefits of e-business. (2 marks)
  5. What is the role of ‘cookies’ in ensuring security of online transactions? (2 marks)
  6. What is the full form of the term ‘VIRUS’? (2 marks)
  7. What is cryptography? (2 marks)

Section C

  1. Discuss the three stages involved in online transactions.
    Explain the steps involved in the process of online trading. (4 marks)
  2. What are the various modes of payment that can be used for online purchases? Explain any two modes briefly. (4 marks)
  3. What resources are required for successful implementation of e-business? Why is a website considered a crucial resource? (4 marks)

Section D

  1. Discuss briefly the benefits and limitations of e-business.
    Bring out the distinct advantages and disadvantages of doing business electronically as compared to the traditional way. (6 marks)
  2. What are the major risks involved in e-business transactions? Explain the security concerns and measures related to: (a) Transaction risks (b) Data storage and transmission risks (c) Threat to intellectual property and privacy (6 marks)

Sample Questions: 2

Time allowed: 2 hours Maximum Marks: 40

General Instructions:

  1. The question paper contains 14 questions.
  2. All questions are compulsory.
  3. Section A: Question numbers 1 and 2 are 1 mark source-based questions. Answers should not exceed 10-15 words.
  4. Section B: Question numbers 3 to 9 are 2 marks questions. These are very short-answer type questions. Answers should not exceed 30 words.
  5. Section C: Question numbers 10 to 12 are 4 marks questions. These are short-answer type questions. Answers should not exceed 80 words.
  6. Section D: Question numbers 13 and 14 are 6 marks questions. These are long-answer type questions. Answers should not exceed 200 words.

Section A

  1. What is the difference between e-business and e-commerce?


E-business is a broader term than e-commerce. Explain briefly.

  1. What is meant by C2C commerce?

Section B

  1. Why is e-business considered truly a business without boundaries?
  2. What are the advantages of intra-B commerce?
  3. Differentiate between digital cash and credit/debit cards as modes of payment in e-transactions.
  4. How can cookies help verify customer identity in online transactions?
  5. What is the role of anti-virus programs in e-business?
  6. What is cryptography? How is it useful in e-business?
  7. What are the threats to intellectual property in e-business?

Section C

  1. Discuss any two benefits and any two limitations of e-business.


E-business provides certain benefits but also suffers from some limitations. Explain with examples.

  1. Explain the three stages involved in online transactions from a customer’s perspective.


Briefly describe the process of online trading from a customer’s point of view.

  1. How can risks in e-transactions related to order taking/giving, delivery, and payment be minimised?


What measures can be taken to ensure secure online payments and prevent transaction risks?

Section D

  1. Businesses need to ensure security and safety of data/information in e-transactions. In light of this statement, discuss the major risks involved in e-business related to: (a) Transactions (b) Data storage and transmission (c) Intellectual property and privacy


What are the major risks and threats involved in e-business transactions? How can they be mitigated?

  1. What resources are required for successful implementation of e-business? Describe the key resources needed with respect to: (a) Hardware and software (b) Website development and maintenance (c) Ensuring security and safety measures




error: Content is protected !!
Table Of Content
Scroll to Top