Chapter 5: Emerging Modes of Business

Business Studies • Class 11

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Chapter Analysis

Intermediate19 pages • English

Quick Summary

Chapter 5 of Class 11 Business Studies introduces the emerging modes of business with a focus on electronic business and business process outsourcing. It explains the process of online buying and selling, differentiates e-business from traditional business, and discusses its benefits and limitations. Furthermore, the chapter highlights security concerns and the significance of outsourcing in contemporary business scenarios.

Key Topics

  • e-business and its components
  • Differences between e-business and traditional business
  • Security concerns in e-business
  • Role of technology in e-business
  • Business Process Outsourcing (BPO)
  • Online trading and its procedures
  • Benefits and limitations of e-business

Learning Objectives

  • State the meaning of e-business.
  • Explain the process of online buying and selling.
  • Distinguish e-business from traditional business.
  • Identify benefits and security concerns of e-business.
  • Discuss the need for outsourcing.
  • Appreciate the scope of business process outsourcing.

Questions in Chapter

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

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Describe briefly any two applications of e-business.

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Describe briefly the data storage and transmission risks in e-business.

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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.

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Elaborate the steps involved in online trading.

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Evaluate the need for outsourcing and discuss its limitations.

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Discuss the salient aspects of B2C commerce.

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

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Additional Practice Questions

What are the primary components of e-business?

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Answer: The primary components of e-business include e-commerce, production, inventory management, product development, accounting, finance, and human resource management, all conducted electronically over computer networks.

Explain the role of digital technology in e-business.

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Answer: Digital technology enables e-business by providing platforms for online transactions, streamlining communication, and offering tools for marketing, inventory management, and employee interactions. It supports the global reach and facilitates real-time data exchange.

Identify and explain three security concerns related to e-business.

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Answer: The three main security concerns in e-business are: transaction risks such as default on payment or delivery, data storage and transmission issues like data breaches and cyberattacks, and privacy risks including the leakage of personal information.

How does e-business contribute to globalization?

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Answer: E-business contributes to globalization by allowing businesses to operate and interact with clients and other businesses across international borders, overcoming time and place constraints through electronic communications and transactions.

Discuss the implications of business process outsourcing (BPO) on employment.

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Answer: Business process outsourcing (BPO) has significant implications on employment as it creates jobs in host countries and helps businesses reduce costs. However, it can also lead to job losses in regions where outsourcing is not prevalent, contributing to economic shifts.