Test: Emerging Modes Of Business - 2 - Commerce MCQ

Popular Methods for Making Online Transactions
There are several popular methods for making online transactions. These include:
Credit Card:
- Credit cards are widely used for online transactions due to their convenience and widespread acceptance.
- They allow consumers to make purchases now and pay for them later.
- Many credit cards also offer rewards programs, such as cash back or travel points, which can incentivize their use.
Net Banking:
- Net banking, also known as online banking or internet banking, allows users to perform financial transactions through a bank's website or mobile app.
- It enables users to transfer funds, pay bills, and manage their accounts from the comfort of their own home.
- Net banking is a secure method of online transaction as it requires authentication through passwords or one-time passwords (OTPs).
Debit Card:
- Debit cards are linked to an individual's bank account and allow for direct transactions from the account.
- They are commonly used for online purchases as they provide a convenient way to pay without carrying cash.
- Debit cards can be used for both online and offline transactions, making them a versatile payment option.
All of these:
- All of the above-mentioned methods (credit card, net banking, and debit card) are popular for making online transactions.
- The choice of method may depend on individual preferences, availability, and security considerations.
- Many online platforms and websites accept multiple payment options, providing users with flexibility in choosing their preferred method.
In conclusion, the answer to the question is D: All of these. Each method has its own advantages and considerations, and users can choose the most suitable method based on their needs and preferences.

C2B provides businesses with something they need or want from consumers, whether it's a press release written by an expert or valuable feedback on a new product.
A feedback or a complaint comes under C2B commerce where the consumer is providing to the business.

Explanation:
The correct answer is D: B2B Commerce.
- B2B stands for Business-to-Business, which refers to transactions that occur between two business firms.
- In B2B commerce, sellers and buyers are both business firms, meaning they are engaged in buying and selling goods or services to each other.
- B2B transactions typically involve larger quantities, higher order values, and longer-term relationships compared to other types of e-commerce transactions.
- B2B commerce is commonly used in industries such as manufacturing, wholesale, and distribution where businesses rely on each other for sourcing raw materials, components, or finished products.
- B2B transactions can be conducted through various channels, including online marketplaces, e-procurement systems, and direct negotiations between businesses.
- B2B commerce plays a crucial role in the global economy, enabling businesses to efficiently source and supply goods and services, streamline operations, and foster business relationships.
In summary, B2B commerce involves transactions between business firms, making it the correct answer in this scenario.

Explanation:
The correct answer to the given question is B2C Commerce. Here is the detailed solution explaining why this is the correct answer:
- B2C Commerce stands for Business-to-Consumer Commerce.
- This type of commerce involves transactions between business firms (the "business" end) and its customers (the "consumer" end).
- In B2C Commerce, businesses sell their products or services directly to individual consumers.
- The transactions can take place through various channels such as online platforms, physical retail stores, or even over the phone.
- B2C Commerce is a common form of commerce where businesses aim to meet the demands and needs of individual consumers.
- It is characterized by businesses marketing and promoting their products or services directly to the end consumers.
- Examples of B2C Commerce include online shopping websites like Amazon, retail stores, or even food delivery services like Uber Eats.
In summary, B2C Commerce involves transactions between business firms and individual consumers, where businesses sell their products or services directly to the end consumers.

The correct answer is option C: Intra-B Commerce. Let's break down the explanation into bullet points for better understanding:
- Intra-B Commerce refers to electronic transactions that occur within a given business firm.
- This means that the parties involved in these transactions are all within the same business organization.
- The prefix "intra-" means "within" or "inside," so the term "Intra-B" signifies transactions happening within a business.
- The "B" in "Intra-B Commerce" stands for "Business," indicating that the transactions are limited to a particular business entity.
- In contrast, options A, B, and D are not the correct answers because they do not accurately describe electronic transactions within a business firm.
To summarize, the name for electronic transactions involving parties within a given business firm is "Intra-B Commerce."

Originally, electronic commerce meant the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). Commercial transaction means a transaction in which the goods or services are intended by the borrower for use primarily for other than personal, family or household purposes. B2B deals with commercial Transactions.

B2C marketing is best defined as the approach to selling goods, products, or services to consumers for use in their everyday lives.
It is definitely true that E-commerce facilitates the B2C marketing into speeding up the process as the customers can get their essentials and other products delivered at their doorsteps. It saves customers’ time and energy.

Answer:
B2C Variant of E-commerce enables a business to be in touch with its customers.
HTML Bullet Points:
- B2C stands for Business-to-Consumer, which refers to the transactions conducted between a business and individual customers over the internet.
- B2C e-commerce allows businesses to sell products and services directly to consumers through online platforms.
- By utilizing B2C e-commerce, businesses are able to establish and maintain direct communication with their customers.
- The B2C variant of e-commerce enables businesses to understand their customers' preferences, needs, and buying patterns.
- It allows businesses to personalize their marketing strategies and offer tailored products or services to individual customers.
- B2C e-commerce platforms provide businesses with the ability to gather customer feedback and reviews, helping them improve their products and services.
- Through B2C e-commerce, businesses can establish brand loyalty and build long-term customer relationships.
- By being in touch with customers through B2C e-commerce, businesses can offer customer support, handle inquiries, and resolve issues promptly.
- B2C e-commerce also enables businesses to reach a wider audience, expand their market reach, and increase sales opportunities.
- Overall, the B2C variant of e-commerce plays a crucial role in establishing and maintaining a strong relationship between a business and its customers.

C2B or Consumer- to- Business is a business model where the end consumers create products and services which are consumed by businesses and organizations. It is diametrically opposite to the popular concept of B2C or Business- to- Consumer where the companies make goods and services available to the end consumers

The correct answer is C: B2E Commerce.
Explanation:
B2E Commerce refers to Business-to-Employee Commerce, which represents a firm's interactions with its employees. It involves the use of digital platforms and technologies to enable businesses to connect and engage with their workforce. B2E Commerce focuses on providing employees with access to various resources, services, and tools to enhance productivity, collaboration, and communication within the organization.
Key points to note about B2E Commerce:
1. Definition: B2E Commerce stands for Business-to-Employee Commerce.
2. Employee engagement: It involves using digital platforms to interact with employees, providing them with resources, services, and tools.
3. Enhancing productivity: B2E Commerce aims to improve employee productivity and collaboration within the organization.
4. Access to resources: It enables employees to access information, training materials, HR services, and other resources conveniently.
5. Communication and feedback: B2E Commerce facilitates effective communication channels between employees and management, allowing for feedback and suggestions.
6. Streamlining processes: It helps in streamlining various employee-centric processes, such as performance management, leave requests, and benefits administration.
7. Personalization: B2E Commerce platforms can be personalized to cater to individual employee needs and preferences.
8. Security and privacy: Data security and privacy measures are crucial in B2E Commerce platforms to protect employee information.
By leveraging B2E Commerce, firms can create a more connected and engaged workforce, leading to improved employee satisfaction, productivity, and overall business success.

VPN stands for Virtual Private Network.

It is a technology that allows users to create a secure connection over a public network such as the internet.

VPN provides several benefits:

• Security: VPN encrypts data, making it difficult for hackers or unauthorized users to access sensitive information.


• Privacy: VPN hides the user's IP address and location, providing anonymity while browsing the internet.


• Remote Access: VPN allows users to securely access resources on a private network from anywhere in the world.


• Bypass Restrictions: VPN can bypass censorship or geographical restrictions, allowing users to access blocked websites or content.


• Public Wi-Fi Protection: VPN encrypts data when connected to public Wi-Fi networks, preventing eavesdropping or data theft.

How VPN works:

• Encryption: VPN uses encryption protocols to protect data transmitted between the user's device and the VPN server.


• Tunneling: VPN creates a secure tunnel through which data is transmitted, preventing interception or tampering.


• VPN Server: The user's device connects to a VPN server, which acts as an intermediary between the user and the internet.


• IP Address Masking: VPN replaces the user's IP address with the IP address of the VPN server, enhancing privacy and anonymity.

Types of VPN:

• Remote Access VPN: Allows individual users to connect to a private network remotely.


• Site-to-Site VPN: Connects multiple networks together, such as branch offices of a company.


• Mobile VPN: Designed for mobile devices, providing secure connectivity for users on the go.

Conclusion:

VPN is a technology that enables users to create a secure and private connection over a public network. It provides various benefits such as security, privacy, and remote access. By understanding how VPN works and its different types, users can make informed decisions about utilizing VPN services.

PayPal is an electronic commerce (e-commerce) company that facilitates payments between parties through online funds transfers. PayPal allows customers to establish an account on its website, which is connected to a user's credit card or checking account. Once identification and proof of funds have been confirmed, a user may begin sending or receiving payments to and from other PayPal accounts. PayPal attempts to make online purchases safer by providing a form of payment that does not require the payor or payee to disclose credit card or bank account numbers.

Formation of Consumers Forum and Pressure Group
Interactive commerce, specifically in the C2C (consumer-to-consumer) area, can greatly benefit from the formation of consumers forum and pressure groups. This allows individuals to come together and actively engage in various aspects of commerce, ensuring their rights and interests are protected. Here's a detailed explanation of why this is an important aspect:
1. Empowering Consumers: Consumers forum and pressure groups empower individuals by providing them a platform to voice their concerns, share experiences, and seek assistance when dealing with sellers or service providers.
2. Collective Bargaining Power: By forming a group, consumers can collectively negotiate with sellers or service providers, demanding better products, services, or prices. This gives them a stronger bargaining position compared to individual consumers.
3. Information Sharing and Awareness: Consumers forum and pressure groups facilitate the exchange of information among members. This helps in raising awareness about fraudulent practices, substandard products/services, and other relevant issues, allowing individuals to make informed decisions.
4. Advocacy and Lobbying: These groups can advocate for consumer rights and lobby for policy changes to protect consumer interests. They can work towards influencing regulations, standards, and legislation that promote fair and ethical trading practices.
5. Consumer Education: Consumers forum and pressure groups can provide educational resources and guidance to members, empowering them with knowledge and skills to make informed choices. This can include organizing workshops, webinars, or publishing informative materials.
6. Conflict Resolution: In case of disputes between consumers and sellers/service providers, these groups can provide mediation and dispute resolution services, saving time and money for individuals involved.
7. Collective Action against Unfair Practices: Consumers forum and pressure groups can undertake collective actions such as boycotts, public campaigns, or legal actions to address unfair practices or unethical behavior by sellers or service providers.
8. Market Feedback: By actively engaging with consumers, these groups can provide valuable feedback to sellers or service providers, helping them improve their offerings and customer satisfaction.
In conclusion, the formation of consumers forum and pressure groups is an important aspect of interactive commerce in the C2C space. It empowers consumers, facilitates collective bargaining, promotes consumer education and awareness, advocates for consumer rights, and provides a platform for conflict resolution and collective action against unfair practices.

Answer:

Most shopping websites provide an option for "Quote your price" which is also known as e-bidding. This feature allows customers to bid or offer their own price for a particular product or service. Here is a detailed explanation of each option:

• Coupon code: Coupon codes are alphanumeric codes that customers can enter during the checkout process to receive a discount or special offer on their purchase. However, this is not the correct option for "Quote your price."



• Discount: Discounts are reductions in the original price of a product or service. While discounts are often offered on shopping websites, they are not related to the "Quote your price" option.



• E-bidding: E-bidding refers to the practice of allowing customers to bid or offer their own price for a product or service. This option is commonly seen on auction websites or platforms where customers can compete with each other to secure the best price.



• Prepaid Booking: Prepaid booking refers to making a reservation or booking in advance by paying the full amount or a deposit. This option is not related to the "Quote your price" feature, as it involves fixed prices rather than customer-initiated price offers.

Therefore, the correct answer is C. E-bidding.

Answer:

Online buying and selling shares and other financial instruments is known as E-Trading.

Explanation:

Online buying and selling of shares and other financial instruments has become increasingly popular with the advancement of technology. This is commonly referred to as E-Trading. Here is a detailed explanation of the concept:
E-Trading:

• E-Trading, also known as electronic trading, refers to the process of buying and selling financial instruments, such as stocks, bonds, options, and commodities, through electronic platforms and networks.


• It allows investors to trade directly through online brokerage platforms, eliminating the need for traditional methods like phone calls or physical presence.


• E-Trading offers several advantages, including convenience, speed, accessibility, and lower costs compared to traditional trading methods.


• Investors can access real-time market data, place orders, monitor their portfolios, and execute trades from anywhere with an internet connection.


• E-Trading platforms often provide tools and resources for research, analysis, and decision-making, enabling investors to make informed trading decisions.


• These platforms are typically secure and provide measures for authentication, encryption, and protection of sensitive financial information.

Therefore, the correct answer is D: E-Trading.

Limitations of e-business:

• Ethical fallouts: E-business may be susceptible to ethical issues such as fraud, hacking, and unauthorized access to sensitive information. This can lead to loss of customer trust and damage to the reputation of the business.


• Risk: E-business involves various risks including financial risks, operational risks, and legal risks. These risks can have a significant impact on the success and profitability of the business.


• Low personal touch: E-business lacks the personal interaction and face-to-face communication that traditional brick-and-mortar businesses offer. This can result in a reduced ability to build strong customer relationships and understand their needs and preferences.

Answer: D. All of these

E-business faces limitations related to ethical fallouts, risk, and low personal touch. These limitations need to be addressed and managed effectively to ensure the success and sustainability of e-business ventures.

Inventory and Cash Management of an Organization is Intra-B Commerce
Explanation:
Intra-B Commerce refers to business transactions that take place within an organization or between different departments of the same organization. It involves the exchange of goods, services, or information between various units or branches of the organization.
Inventory and cash management are essential functions within an organization that involve the tracking and control of physical assets and financial resources. These activities are primarily internal in nature and are not directly involved in external transactions with customers or suppliers.
Here are the reasons why inventory and cash management are considered as Intra-B Commerce:
- Internal Process: Inventory and cash management are internal processes that focus on managing the organization's resources effectively and efficiently. It involves tracking inventory levels, managing stock movements, and ensuring the availability of cash for day-to-day operations.
- Organizational Efficiency: Proper inventory and cash management help in optimizing the use of resources, reducing costs, and improving overall operational efficiency. It ensures that the organization has the right amount of inventory to meet customer demand and sufficient cash flow to support business operations.
- Internal Control: Inventory and cash management involve implementing internal control measures to prevent theft, fraud, or misappropriation of assets. This includes periodic stocktaking, reconciliation of cash balances, segregation of duties, and implementing appropriate internal control mechanisms.
- Decision Making: Effective inventory and cash management play a crucial role in decision-making processes within the organization. It provides valuable insights into sales trends, customer preferences, and financial performance, which help in making informed decisions regarding production, procurement, pricing, and financial planning.
- Integration with Other Functions: Inventory and cash management are closely integrated with other functions such as sales, procurement, finance, and production. Seamless coordination and information sharing between these functions are essential for efficient inventory and cash management.
In conclusion, inventory and cash management are considered as Intra-B Commerce because they are internal processes that focus on managing resources, optimizing efficiency, implementing internal controls, supporting decision-making, and integrating with other functions within the organization.

Customer to customer (C2C) is a business model whereby customers can trade with each other, typically in an online environment. C2C marketing has soared in popularity with the arrival of the Internet and companies such as eBay, Etsy, and Craigslist

The correct answer is option C: Decrease in Liabilities will be credit.
Here's a detailed explanation:
1. Decrease in assets will be credit:
- In accounting, assets have a normal debit balance.
- When there is a decrease in assets, it means that there is an outflow or reduction of assets.
- To record this decrease, we need to credit the asset account to reduce its balance.
- So, a decrease in assets will be recorded as a credit entry.
2. Decrease in Expense will be credit:
- Expenses also have a normal debit balance in accounting.
- When there is a decrease in expenses, it means that the amount of expenses incurred has reduced.
- To record this decrease, we need to credit the expense account to reduce its balance.
- So, a decrease in expenses will be recorded as a credit entry.
3. Decrease in Liabilities will be credit:
- Liabilities have a normal credit balance in accounting.
- When there is a decrease in liabilities, it means that the amount of obligations or debts has reduced.
- To record this decrease, we need to debit the liability account to reduce its balance.
- So, a decrease in liabilities will be recorded as a debit entry, not a credit entry. Therefore, option C is not correct.
4. Decrease in Revenue will be debit:
- Revenue has a normal credit balance in accounting.
- When there is a decrease in revenue, it means that the amount of income earned has reduced.
- To record this decrease, we need to debit the revenue account to reduce its balance.
- So, a decrease in revenue will be recorded as a debit entry.
In summary, the correct statement is that a decrease in liabilities will be a debit entry, not a credit entry.

B2C is a business model based on transactions between a company, that sells products or services, and individual customers who are the end-users of these products.
In this case a bank is company providing services which is being availed by the customer by withdrawing money from his bank through an ATM.