Important Questions for CBSE Class 11 Business Studies Chapter 5 – Emerging Modes of Business

Important Questions Class 11 Business Studies Chapter 5 – Emerging Modes of Business

Business Studies can be characterized as a set of interconnected business disciplines that result in different fundamental knowledge and abilities. It is a type of subject that focuses on the essential information and abilities needed to organize businesses and general office management. Emerging modes of business are the fifth chapter of the Class 11th syllabus, which teaches about different modes of business. This chapter covers concepts such as the meaning of e-business, the process of online buying and selling, distinguishing e-business from traditional business, the benefits of switching to electronic mode, significant security concerns of e-business, the need for business processing outsourcing, and so on. This chapter carries significant weightage in the Business Studies syllabus. Students can easily access Chapter 5 Class 11 Business Studies Important Questions and more from the Extramarks’ website. 

It is vital to review all chapters in the Business Studies syllabus thoroughly. At Extramarks, we understand the value of solving essential questions. Keeping that in mind, we have curated a list of important questions from different sources such as the NCERT Textbook, NCERT Exemplar, other reference books, past years’ exam papers, and so on. After much research, our Business Studies subject matter experts have developed step-by-step solutions to help students to comprehend the topics in a better way. Students can register with Extramarks and access Important Questions Class 11 Business Studies Chapter 5.

Along with Business Studies Class 11 Chapter 5 Important Questions, there is so much that the Extramarks’ website has to offer. Students can easily find materials like NCERT Solutions, CBSE revision notes, past years’ question papers, NCERT books, and more on the Extramarks’ website.

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Emerging Modes of Business Class 11 Questions and Answers

A team of Extramarks Business Studies experts has developed an entire list of Class 11 Business Studies Chapter 5 Important Questions taking references from numerous primary and secondary sources. These questions include a wide variety of topics as follows:

The meaning of e-business

The process of online buying and selling

Distinguishing e-business from traditional business

Benefits of switching to electronic mode

Significant security concerns of e-business

Need for business processing outsourcing.

These questions and their solutions help students to comprehend Emerging Modes of Business.

Given below are a few Important Questions from Class 11 Business Studies Chapter 5 and their solutions:

Q1. Briefly describe the data storage and transmission risks in e-business.

Answer. Data is exposed to various threats when it is being kept or transferred. With the help of hackers or viruses, it is possible for crucial information to be taken or maliciously manipulated. As a result of such activities, data may be corrupted. The transmission of online transactions is likewise potentially very dangerous. When data is transferred through the Internet, the following dangers can occur.

• If a vendor or buyer denies that an order was made on their behalf.
• Goods may be delivered to an incorrect address or may not arrive at all.
• In other circumstances, the seller claims not to have received the payment, despite deducting it from the receiver’s account.

Q2. What exactly does the term “intra-B Commerce” mean?

Answer. Intra-B Commerce is a type of e-commerce in which the parties participating in the electronic transactions are from the same company. Today’s enterprises can engage in flexible manufacturing partly because of intra-B commerce. Computer networks allow the marketing department to connect with the manufacturing department constantly, allowing tailored goods to be created based on the demands of each consumer.

Employees might, for example, use Virtual Private Network (VPN) technology to avoid having to come into the workplace. Instead, the workplace comes to them, and they may work on their schedule from anywhere, at any time.

Q3. State any three differences between e-business and traditional business.

Answer. The listing below three differences between e-business and traditional business:

E-business:

• It’s challenging to start a firm since there are so many requirements.
• The initial cost is significant.
• It is solely limited to the region where it is established.

Traditional business:

• It’s simple to set up.
• Setup costs are minimal.
• Because everyone is linked on the Internet, you can contact individuals nationwide.

Q4. Explain what the term “e-business” means.

Answer. E-business (Electronic business) is the practice of conducting business through the Internet. It entails not just purchasing and selling but also providing customer service and cooperating with other businesses. E-commerce is the future for all businesses. It refers to using technology, processes, and management techniques to improve organisational competitiveness through the strategic use of electronic data.

It goes beyond e-commerce by tightly integrating e-commerce with company processes to enhance performance, create value, and allow new business-to-customer connections. It entails improving customer and supplier connections. Checking the competition is helpful, generating fresh product ideas and suppliers. Its primary focus is on re-engineering corporate processes.

Q5. Discuss the limitations of the electronic mode of doing business. Are these limitations severe enough to restrict its scope? Give reasons for your answer.

Answer. The following are some of the electronic methods of business drawbacks:

Delivery Time:

• In the world of e-commerce, goods delivery takes time and this really impacts customers and turns them off. 
• These days, however, e-businesses are attempting to tackle such concerns by offering a concise time frame. Amazon, for example, now guarantees one-day delivery.

 Technological capability and competency of e-business participants are needed:

• The parties participating in e-business must have a high level of computer literacy. The so-called digital gap can also be attributed to this requirement.
• The phrase “digital divide” refers to societal divisions depending on one’s familiarity with or lack of familiarity with digital technology.

Ethical fallouts:

• Companies use an ‘electronic eye’ to watch your computer files, email account, and internet visits, among other things, to learn about your likes, preferences, and other information. In a variety of respects, it’s immoral.

Security issues:

• Many people can conduct business online. Hackers also have an easier time getting a person’s financial information. It has a few security and integrity issues. This causes potential clients to be sceptical.

Lack of personal touch:

• You can’t touch or feel the product, unlike in traditional business. As a result, customers can’t assess the product’s quality until the order has been delivered.
• Traditional companies have traditional touch with salespeople, and as a result, there is a sense of compassion and trustworthiness. It also increases consumer trust. In an e-business paradigm, such features will always be absent.

Q6. What exactly do you mean when you say:

1. B2B Commerce
2. B2C Commerce
3. Intra-B Commerce
4. C2C Commerce

Answer: The terms are explained below:

B2B Commerce:

• The name B2B (business-to-business) was coined since both parties participating in e-commerce transactions are companies.
• To provide utility or offer value, a company must collaborate with several other companies. These companies might be input suppliers or vendors or be part of the distribution channel via which a corporation sells its products to customers.
• For instance, turtle.com.

B2C Commerce:

• Commercial-to-customer (B2C) contacts bring together businesses and their consumers.
• It covers various online marketing tasks, including finding activities, promoting them, and, on rare occasions, even delivering products.
• It allows a company to communicate with its clients 24 hours a day, seven days a week, which aids in determining customer satisfaction levels.
• For instance, Amazon, Nykaa, and others.

Intra-B Commerce:

• The parties involved in electronic transactions are all employees of the same firm.
• Intra-B trade allows today’s enterprises to engage in flexible production to a large extent. Computer networks allow the marketing department to connect with the manufacturing department constantly, allowing tailored goods to be created based on the demands of each consumer.
• Customised mobile phone and laptop manufacturing, for example, need collaboration across several divisions inside a company.

C2C Commerce:

• The customer is the origin of the business, and the customer is the final goal.
• This type of business is ideal for dealing with commodities without an established market mechanism.
• For instance, eBay, Etsy, and other such sites.

Q7. 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. In the recent decade, the business has undergone significant transformations and evolved. The method of business refers to how a company conducts its operations. E-business and Outsourcing are referred to as emergent business models since they have revolutionised the way businesses are conducted. E-business is the practice of conducting business through the Internet. It uses the Internet to communicate with customers and suppliers. Some E-business work includes Inventory management, warehousing, software development, and other electronic commerce forms.

Outsourcing is the process of an organisation’s non-core operations being delegated to another organisation with competence in those areas. It lowers the company’s expenditure for keeping such individuals on staff. The experience, efficiency, and improved calibre of employees benefit an organisation.

Here are some of the causes that are contributing to the growing prominence of such trends:

• Improvements in corporate processes have resulted from new ways of working and innovation.
• Consumers are more aware, and there is a greater desire for higher quality, lower prices, and better customer service.
• Businesses must grow with new technology, making them more scalable.

Q8. What are the numerous applications and advantages of e-commerce?

Answer. Following are the advantages and applications of e-commerce:

• Before sale inquiry: Customers can contact the firm’s sales professionals via the corporate website to obtain information about the product’s pricing, specifications, and other details. It may choose a merchant based on advertising or a suggestion from a friend.
• Customers search: E-commerce helps identify potential customers for a product or service by sending them informational emails about the product or service. These emails assist clients in comprehending the product and deciding whether to purchase it. It uses a search engine to locate a suitable seller’s website.
• Sales promotions: Online trade on the Internet may boost sales while also allowing for improved customer service by collecting complaints via email.
• Publication and distribution of information on the company’s website assists in delivering up-to-date information on the product’s pricing, discount, and quality, among other things. The website may be visited from anywhere on the planet.
• Product promotion: E-commerce facilitates product promotion through emails, websites, telemarketing, and other means. Customers can receive the most up-to-date information via email or the company’s website.
• Product sales: Products can be purchased online through the website. Customers may select a product from a picture catalogue and place an order online. You can pay with a check, a draught, or a credit card.
• After-sales service: Customers may receive prompt after-sales support by contacting them using the email address. Customers can send concerns to the company via email.
• Purchasing goods: Suppliers can be identified on the Internet for a particular product or service. Suppliers from all around the world may be found using search engines like Google and Yahoo.
• Money transfer: Internet banking allows you to move money from one bank to another. Customers are given a safe identity to conduct online transactions. Payment can be made online using a credit card or a check.

Q9. What are the ethical concerns involved in Outsourcing?

Answer. Outsourcing has also brought up specific ethical issues. The following are the primary ethical concerns:

• Discrimination: Similarly, pay discrimination arises based on the worker’s sex. Women are paid lesser salaries because workers are exploited by paying less than the minimum wage.
• Employment: When a function is outsourced to a firm in another nation, it eliminates job prospects in one’s own country.
• Child labour: Outsourcing has resulted in the employment of children and women in factories, where working conditions are unclean and even deadly. Corporations cannot do so due to tight restrictions prohibiting the use of child labour in industrialised countries.
• Confidentiality: Outsourcing entails the interchange of vital information and expertise, so confidentiality concerns have been expressed and need to be addressed. It can be detrimental to the interests of the party that outsources its procedures, and there is even a chance that competing corporations will gain access to information about that company. 

Q10. How does Outsourcing represent a new model of business?

Answer. Outsourcing has revolutionised the way companies are conducted in the past, and it continues to expand every day. It also has a bright future ahead of it. Outsourcing is a cutting-edge idea that has increased enterprises’ value, convenience, and efficiency in procurement, manufacturing, and marketing. Therefore, it is referred to as an emergent business model.

The following are the variables that have contributed to outsourcing’s increased importance:

• Assist in lowering costs for high-quality goods.
• Facilitate the advancement of technology and innovation.
• Increase the speed of the business process.
• Help businesses focus on core areas of expertise, and master that.

Q11. In e-business, what does the letter ‘e’ stand for?

Answer. In e-business, the letter ‘E’ stands for electronic. Using computer networks to conduct business, trade, and commerce is referred to as e-business. E-business is a broader term that refers to various electronic business activities and services, including well-known e-commerce transactions.

Q12. Discuss the salient aspects of B2C Commerce.

Answer. The following are some of the essential characteristics of B2C commerce:

• With the help of regional and worldwide support centres, customers can access 24 hours a day, 7 days a week.
• Products may be advertised across geographies, reaching a more significant number of people.
• Advertising is less expensive since it can be done utilising online promotional platforms like social media and websites.
• Customers can pay using various methods, including debit cards, credit cards, net banking, or cash on delivery, and there are also attractive EMI options available.
• Customers can have items tailored to their preferences and interests.

Q13. What are the three advantages of doing business online?

Answer. The following are three advantages of doing business online:

• Speed and efficiency: Online ordering systems can handle payments and orders in real-time, which is typically faster, more precise, and less expensive than human workers.
• There are no geographical limitations: anyone can order anything anytime. On the one hand, the online business provides access to the worldwide market for the seller, while on the other hand, it allows the buyer to choose items from nearly any part of the world.
• Flexible Working Hours: Because the Internet is always on, you may establish your working hours. E-business overcomes the time constraints that location-based businesses encounter.

Q14. Elaborate on the steps involved in online trading.

Answer. The steps involved in online trading are: Registration, Placing an order and the payment mechanism.

Registration:

• You create an ‘account’ when you register with an online merchant by filling out the registration form.
• Because the regions linked to an individual’s “account” and “shopping basket” are password-protected, a “password” must be entered among the other information.

Placing an order:

• By dragging and dropping items into the shopping basket, you may add them to the cart.
• A shopping cart is like an online record of a customer’s items in his basket when shopping on the Internet.
• You can ‘checkout’ once you’ve selected what you want to buy.

Payment mechanism: Online purchases can be made in various ways.

• Net-banking Transfer: Modern banks offer their clients the option of transferring payments electronically through the Internet using the Immediate Payment Service (IMPS), NEFT, and RTGS.
• Cash-on-Delivery: When you order anything online, you may pay for it with cash when it arrives.
• Cheque: The online retailer may arrange for the customer’s cheque to be picked up. Product delivery may be tried after realisation.
• Credit or Debit Cards: Credit card holders can use their cards to make purchases on credit. The card issuing bank assumes the amount due by the cardholder to the online seller and subsequently transfers the transaction’s amount to the seller’s credit.

The bearer of a debit card can make purchases up to the amount of money in the connected account. The amount owed as payment is debited electronically from the card at the time of the transaction.

• Digital cash: Digital Cash has no physical properties, but it allows you to use actual money electronically, such as through e-wallets like Paytm.

Q15. Write a short note on the different types of Outsourcing.

Answer. Businesses can use Outsourcing for any non-core company process. The following are examples of popular services that may be outsourced:

• Advertising: All large corporations delegate the task of publicising their products and services to specialist organisations. Advertising companies are often entrusted with planning, producing, and spreading ads for businesses’ products and services. Coca-Cola, Pepsi, Hindustan Lever, and other significant marketers deal with advertising firms. The advertising agency agrees to supply all advertising services in exchange for a fee under the terms of the agreement. Outsourcing also facilitates the usage of ad-agency professionals’ services.
• Financial Services: Large corporations require financial services from internal and external sources. Every business needs financial services, such as payroll accounting, merchant banking, underwriting, etc.

Except for huge companies, manufacturing and commercial organisations find it easier and more cost-effective to rely on outside financial institutions for different financial services. Reliance Industries, for example, may outsource financial services such as issuing ADRs/GDRs in overseas capital markets to HSBC Bank.

• Customer Support Service: ‘A customer is like a valuable ornament that should not be taken by anybody else,’ says Customer Support Service (CSS). Customers may make use of a variety of services to help them buy and use items. Companies are learning that providing good customer service is an excellent approach to competitive advantage in today’s market.

Customers require home delivery, consumer durables repair and maintenance, and information and counselling on alternative brands that best match their requirements. Customer support services can be outsourced so that businesses can focus on sales. For example, GE Capital and other corporations have built contact centres in India to help consumers in many nations.

• Courier Service: Big corporations must ship large quantities of mail, packages, and other items. They employ sendees from courier companies like DTH, Overnight Express, and others. These courier companies acquire all items deposited from client offices and deliver them to their destinations. Clients benefit from courier service since it is faster, more efficient, cheaper, more dependable, and individualised.

Q16. Describe briefly any two applications of e-business.

Answer. The following are some of the applications of e-business:

• E-delivery: This procedure entails the electronic transmission of movies, games, or software straight to the consumer’s system using high-speed data services. Payments are made over the Internet.
• E-procurement: This refers to web-based transactions between businesses that are either buyers or sellers. Reverse auctions are also used in transactions where numerous vendors compete to sell their products to a single buyer. There are numerous players in a digital marketplace, such as several buyers and sellers or a single vendor.

Q17. Evaluate the need for Outsourcing and discuss its limitations.

Answer. Contracting some corporate tasks to external firms is known as Outsourcing. Following are the need for Outsourcing:

The pursuit of excellence:

• Outsourcing helps the organisation to strive for excellence in two ways. Individuals flourish in the tasks they can accomplish because of their tight concentration.
• They also succeed by expanding their skills by delegating the remaining work to people who are skilled in those areas.

Limiting the scope of a company’s operations:

• Businesses realise the value of concentrating on only a few areas with unique capabilities or core competencies and contracting out the rest of the tasks to their outsourcing partners.
• They may focus their time and resources on a few essential activities by limiting the scope of their firm and increasing efficiency and effectiveness.

Partnerships for Growth:

• The investment needs are minimised to the extent that one can use the services of others.
• As a result, a business may expand swiftly since the same amount of investible money can be used to develop many businesses.
• Outsourcing facilitates inter-organisational information exchange and collaborative learning.

Development of the economy:

• Outsourcing, particularly offshore Outsourcing, encourages entrepreneurship, job creation, and exports in the host nations (i.e., countries where Outsourcing is done).

Cost-cutting:

• Specialisation and division of labour Quality may be improved while expenses are reduced.
• Outsourcing partners take advantage of economies of scale by delivering the same service to many organisations.
• Differences in the prices of key industrial inputs among nations can help reduce costs.

Some limitations of Outsourcing are:

Sweat shopping:

• Outsourcing tries to save costs by utilising low-cost labour as much as possible.
• As a result, companies that outsource search for ‘doing’ talents rather than developing ‘thinking’ skills.

Concerns of ethics:

• To save money, businesses outsource their labour to another nation, where it is performed in an unethical manner.
• Working with children, for example, is a viable option.

Intense resentment in native countries:

• What is eventually outsourced while contracting out manufacturing, marketing, research and development, or IT-based services is ’employment’ or jobs from one nation to another.
• If the home nation is dealing with an unemployment issue, this might lead to resentment.

Confidentiality: 

• Outsourcing entails the interchange of a lot of essential data and expertise.
• It can harm the interests of the party that outsources its procedures, and there is even a chance that competing corporations will gain access to information about that company.

Q18. Why are e-commerce and outsourcing referred to as developing business models? What are the elements that are causing these trends to become more important?

Answer. E-business and Outsourcing have transformed the way businesses are conducted in the past, and they continue to expand daily, with a bright future ahead of them. E-businesses and Outsourcing are creative concepts that have increased enterprises’ value, convenience, and efficiency in company operations such as procurement, manufacturing, and marketing, among others. This is why they are referred to be emergent business models:

Outsourcing and e-business are becoming increasingly important due to the following factors:

• Facilitate technological development and innovation: Any company must innovate and create new ideas and products to remain competitive. In this environment, e-business and outsourcing have proven to be a godsend for manufacturers, as they allow for the continuous development of firm strategy and new technologies.
• They contribute to the affordability of high-quality goods: The demand for high-quality, custom-made items has increased, and e-commerce and Outsourcing are becoming more crucial in delivering what customers want at a reasonable price by facilitating the creation and supply of high-quality products, e-business and outsourcing help to achieve the objective of excellence.
• They pave the way for effective after-sales service: Any company needs to meet the needs of its customers. Customers profit from e-commerce and outsourcing because they may receive quick and effective post-sale support.
• They speed up the business process: As consumer demands grow, it’s become critical to be able to do business from anywhere and at any time. E-commerce and outsourcing assist in speeding up the buying and selling process 24 hours a day, seven days a week.

The above-stated section of Important Questions Class 11 Business Studies Chapter 5 is a list of Important Questions covering the entire chapter.

Benefits of Solving Emerging Modes of Business Class 11 Important Questions

Business Studies is introduced to students in Class 11 and demands a significant amount of time for reading and revision. The basics taught in Class 11 set the stage for the Class 12 board examination. Class 11 students are advised to go through Extramarks Important Questions Class 11 Business Studies Chapter 5. This list of important questions can make this subject easy for the students to understand the topics given in the chapter.

Given below are some benefits of solving Business Studies Class 11 Chapter 5 Important Questions and Answers:

• There is a solved key to all the textual questions. By referring to this, a student can accomplish any desired learning goal like – studying a concept/chapter from scratch, revising before examination etc.
• Through regular practice, students will be able to increase their understanding of the chapter and build a strong foundation on the concepts.
• These important questions are made following the rules and guidelines laid by CBSE. 
• The solutions prepared by the experienced faculty will help you to learn how to compose an answer that meets the question’s requirements 
• These questions prove to be time-saving for students as they wouldn’t have to look for any other resources for their exam preparation.
• Important Questions Class 11 Business Studies Chapter 5 covers all the concepts of the entire chapter – Emerging Modes of Business.

Extramarks provides comprehensive learning solutions for students from Class 1 to Class 12. We have abundant resources available on our website, along with essential questions and solutions. Students can click on the links given below to access some of these resources:

• NCERT books
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• CBSE sample papers
• CBSE past years’ question papers
• Important formulas 
• CBSE extra questions