Test: Emerging Modes Of Business - 3 - Commerce MCQ

Customer to Customer Commerce - Under it, both the parties involved in electronic transaction are customers. It is required for the buying and selling of those goods for which there are no established markets. For example-selling old car through internet. Benefits of e-Business. 

B2E is business-to-employee, an approach in which the focus of business is the employee, rather than the consumer (as it is in business-to-consumer, or B2C) or other businesses (as it is in business-to-business, or B2B).

Level -2 virus means:
- Disruption of functioning: A level -2 virus refers to a type of computer virus that causes disruption in the functioning of a system. It may slow down the system, cause errors, or make it unstable.
- Complete destruction of the system: A level -2 virus does not typically lead to the complete destruction of the system. It may cause damage or compromise the system, but it is not designed to completely destroy it.
- Damage to target data file: A level -2 virus may target specific data files and cause damage to them. This could result in the loss or corruption of important data.
- Annoyance in terms of some onscreen display: Some level -2 viruses may display annoying messages or pop-ups on the screen, causing inconvenience to the user.
Overall, a level -2 virus is considered to be a moderate threat compared to higher-level viruses. While it can cause disruptions and damage, it is usually manageable and can be resolved with proper antivirus measures and security protocols.

- The correct answer is B: Electronic Data Interchange (EDI).
- EDI is a technology used to automate and facilitate the exchange of business documents between companies in a standardized electronic format.
- Historically, EDI replaced paper-based transactions, improving efficiency and reducing errors.
- It allowed companies to communicate order, invoice, and shipping information quickly and securely.
- EDI is crucial for supply chain management, enabling seamless B2B transactions and integration.

Credit card authentication is the process of confirming a customer’s credit card with the issuing entity. Credit card authentication generally refers to the first half of the transaction communication process which involves transmitting the card information to the issuer through the payment processor for authentication.

B2C (Business-to-Consumer) commerce primarily benefits businesses by:
- Facilitating Real-Time Control Over Customer Satisfaction Levels:
- B2C platforms allow businesses to directly engage with customers, monitor feedback, and adjust services or products instantly to enhance satisfaction.
- Real-time analytics from online transactions help businesses understand customer preferences and trends, enabling quick response to issues.

This direct interaction and feedback loop are crucial for improving customer relations and satisfaction, making option C the most relevant benefit.

• E-commerce has revolutionized customized product delivery by enabling cost-effective, personalized options similar to mass-produced items.
• Advanced technology, like 3D printing and automated design tools, reduces costs and skilled labor dependence.
• These technologies streamline production, allowing companies to offer affordable customization.
• Customers can easily design and order unique products online without significant price differences.

- Horizontal/Flat Structure: E-business organizations often adopt a horizontal or flat structure because it facilitates direct communication and quick decision-making.
- Characteristics:
- Speed: Enables rapid response to market changes.
- Flexibility: Adjusts quickly to new trends and technologies.
- Innovation: Encourages innovation by empowering employees.
- Technology-Driven: The use of technology in e-business reduces the need for hierarchical layers, promoting a more streamlined and efficient structure.

- B: Transaction risk due to anonymity and distance.

- E-business transactions often occur without face-to-face interaction, increasing the risk of fraud or identity theft.
- Online transactions rely heavily on digital security, which can be compromised, leading to data breaches.
- Anonymity makes it harder to verify the legitimacy of the parties involved.
- Distance complicates dispute resolution and legal recourse, as parties may be in different jurisdictions.

In the context of outsourcing, the process can be directed to different types of units or divisions. These include:

• Captive BPO unit: A business process outsourced to a company-owned unit, typically in a different location.

• Horizontals: These involve outsourcing processes that cut across different industries, like IT support or HR services.

• Verticals: Refers to outsourcing specific to an industry, such as healthcare or finance.

• All of these options are viable for outsourcing purposes.