{"id":22828,"date":"2024-01-27T17:25:44","date_gmt":"2024-01-27T11:55:44","guid":{"rendered":"https:\/\/apboardsolutions.in\/?p=22828"},"modified":"2024-01-29T16:02:38","modified_gmt":"2024-01-29T10:32:38","slug":"ap-inter-1st-year-commerce-study-material-chapter-12","status":"publish","type":"post","link":"https:\/\/apboardsolutions.in\/ap-inter-1st-year-commerce-study-material-chapter-12\/","title":{"rendered":"AP Inter 1st Year Commerce Study Material Chapter 12 Emerging Trends in Business"},"content":{"rendered":"

Andhra Pradesh BIEAP AP Inter 1st Year Commerce Study Material<\/a> 12th Lesson Emerging Trends in Business Textbook Questions and Answers.<\/p>\n

AP Inter 1st Year Commerce Study Material 12th Lesson Emerging Trends in Business<\/h2>\n

Essay Answer Questions<\/span><\/p>\n

Question 1.
\nDefine E – business and explain the scope of E – business.
\nAnswer:
\nTher term E-business refers to the integration of business tools based on ICT to improve the functioning of the company. “E-business” refers to the use of an online support for the relationship building between a company and clients. E – business was first used by IBM in 1997. It defined E – business as “the transformation of key business processes through the use of internet technologies”. E – business is defined as the application of information and communication technologies (ICT) which support all the activities and realms of business.<\/p>\n

E-Business uses web based technology to improve relationships with customers. Implementing an E-business project necessarily involves the deployment of a network or web – interface connecting company specific services to the client.<\/p>\n

Scope of E – Business :
\nE – business can be divided into following areas.
\na) E – business within the organisation<\/p>\n

b) Business to business (B2B) :
\nE – business refers to an exchange of products and services by one business and another.<\/p>\n

c) Business to customer (B2C) :
\nE – business refers to an exchange of products and services from a business to a customer.<\/p>\n

d) Customer to customer (C2C) :
\nE – business refers to C2C transactions are being facilitated by websites like quicker, olx, where customers offer their products online to be bought by other customers.<\/p>\n

e) Customer to business (C2B) :
\nC2B transactions involve provision of project work by customers on internet to the needy companies.<\/p>\n

Most of us are aware of buying products online through some sites like Flipkart, Jabong and Amazon. Almost everything from gym equipment to laptops, apparels to Jewelries are available online in this age of E-commerce. Even people are also buying services online. Business consultants, lawyers and doctors are offering their services or advices to their potential clients via internet.<\/p>\n

Electronic business is a super set of business cases. E – commerce is one of the aspects of e – business. Some other important aspects of e – business, which are successfully carried through the internet, are e – auctioning, e – banking, e – directories, e – engineering, e – franchising, e – gambling, e – learning, e – mailing, e – marketing e – operational resource management, etc.<\/p>\n

i) E-commerce :
\nTransacting or facilitating business through internet is called e-commerce. E-commerce is short for “Electronic commerce”.<\/p>\n

ii) E – auctioning :
\nThe internet enables people to participate in the auction without sacrificing their personal time. In e – auctioning the people who want to participate in the auction, visit the website with a click and go through the details.<\/p>\n

iii) E-banking :
\nElectronic banking is one of the most successful online businesses. E-banking allows customers to access their accounts and execute orders through use of website. Online banking allows the customers to get their money from an ATM.<\/p>\n

iv) E-marketing :
\nElectronic marketing provides a worldwide platform for buying and selling of goods without having any geographical barriers. The internet allows companies to react to individual customer demands immediately without any loss of time. It does not matter where the customer is located.<\/p>\n

v) E – trading :
\nE-trading is also known as “online trading\u201d or e – broking. It is used for buying and selling stocks in stock exchanges.<\/p>\n

Question 2.
\nExplain the benefits of E – business.
\nAnswer:
\nE-business has many advantages which can be broadly classified into the following categories.
\nA) Benefits to Customer
\nB) Benefits to Organisation
\nC) Benefits to Society<\/p>\n

A) Benefits to Customer:
\ni) Shopping at ease :
\nE – business enables customers to shop or do other transactions 24 hours a day, round the year from almost any location.<\/p>\n

ii) Wide choice :
\nCustomers will have more choices or more alternative products and services.<\/p>\n

iii) Price savings :
\nE – business provides customers with less expensive products and services by allowing them to shop in many places and conduct quick comparisons.<\/p>\n

iv) Exchange of information :
\nAllows customers to interact with other customers and exchange their opinions and experiences on products purchased.<\/p>\n

B) Benefits to Organisation :
\ni) Reach beyond boundaries :
\nExtends the market place to national and international markets.<\/p>\n

ii) Cost savings:
\nReduces the cost of creating, processing, distributing, storing, and retrieving information. Allows reduced inventories and overheads.<\/p>\n

iii) Competitive benefits :
\nReduced processing time allows for customization of products and services for achieving competitive advantages.<\/p>\n

iv) Earlier capital collection :
\nReduces the time between the outlay of capital and the receipt of products and services.<\/p>\n

C) Benefits to Society :
\ni) Environmental benefits :
\nEnables more individuals to work at home and to do less travelling for shopping, resulting in less traffic on the roads and lower air pollution.<\/p>\n

ii) Public welfare :
\nAllows some merchandise to be sold at lower prices benefiting the poor ones.<\/p>\n

iii) Availability of products :
\nEnables people in Third World countries and rural areas to enjoy produces and services which otherwise are not available to them.<\/p>\n

\"AP<\/p>\n

Question 3.
\nExplain the opportunities of business enterprises in 21st<\/sup> century.
\nAnswer:
\nThe following are the opportunities of business enterprises in 21st<\/sup> century:<\/p>\n

i) LPG :
\nThe economic reforms initiated in the form of Liberalization, Privatization, and Globalization (LPG) have brought in structural changes which ultimately created favourable environment for business enterprises in India.<\/p>\n

ii) Increase in size and diversification :
\nThe 21st<\/sup> century business enterprises are characterized with large-sized and highly diversified organisations. Companies are able to reduce their costs and thereby increase in profits.<\/p>\n

iii) Increase in per capita income :
\nIndia has emerged as the fourth largest economy globally with a high growth rate with its improved per capita income. Per capita income is the measure of living standards of its people in a country. As India’s per capita income is increasing, the business opportunities are also increasing in India.<\/p>\n

iv) Market economies:
\nThe Indian economy being one of the largest economies in the world with a population of more than 1.2 billion is flourishing and attracting industrial, trade and service sectors all around the world.<\/p>\n

v) E-Commerce – A gate way to global markets :
\nBusiness enterprises across the globe are discovering the benefits of electronic commerce.<\/p>\n

vi) Technological advancements :
\n21st<\/sup> century business enterprises are able to use ultramodern technology. With the advancement of technology, organisations are able to offer services.<\/p>\n

vii) Expansion of financial services :
\nBanking insurance, debt and equity financing, micro finance sectors are helping the people to save money and to get liberal credit for their future needs.<\/p>\n

viii) Automation of business processes :
\nBusiness Process Automotion (BPA) is the strategy that a business uses to automate processes in order to curtail costs. The objective of BPA is not only to automate business processes,but also to simplify and improve business workflows in terms of achieving greater efficiency, adapting to changing business needs and reducing potentiality human error.<\/p>\n

ix) Growing mergers, acquisitions and foreign collaborations :
\nMergers and acquisitions is a strategy of modern business enterprises for improving innovation, profitability, market share and stock prices. This helps in generating cost effectiveness.<\/p>\n

x) Scope for international enterpreneurship :
\nIn 21st<\/sup> century, many organizations are globalizing their businesses in terms of manufacturing, service delivery, capital sourcing, or talent acquisition as a defensive strategy. Similarly these are discovering a new business opportunities in more than one country to create new products or services to suit to the diversified needs of the customers.<\/p>\n

Question 4.
\nExplain the challenges of business enterprises in 21st<\/sup> century.
\nAnswer:
\nThe following are the challenges of business enterprises in 21st<\/sup> century:
\n1) Threat of technology :
\nBusiness organisations have to adopt themselves in tune with the changing technology and modernize their plant and equipment and processes, if not they will become outdated in the market.<\/p>\n

2) Growing consumer awareness:
\nGrowing consumer awareness about the products and services will continue to drive sustainability of business in 21st century. Businesses need to respond to consumer demand to gain customers and avoid losing their market share.<\/p>\n

3) Challenges of globalization :
\nGlobalization is leading to strategic challenges of mixed cultures and languages in the business environment.<\/p>\n

4) Depleting natural resources:
\nMost of the manufacturing enterprises depend upon certain natural resources which is a key source of raw materials.<\/p>\n

5) Economic recession :
\nEconomic recession took place in the United States and Europe is slowly showing its affects on performance of business enterprises in other countries also.<\/p>\n

6) Information challenges :
\nInformation technology supported by a new world infra-structure of data communications and telecommunications i.e. use of internet, wireless, e-commerce as part of management tools and easing of technology transfer has posed a bigger challenge for 21st<\/sup> century business enterprises.<\/p>\n

7) The challenge of the environment :
\nEnvironmental degradation is one of the biggest challenges of business organisations facing today. Pollution and global warming are the challenges, which all countries are facing.<\/p>\n

8) Corruption and bureaucratic hurdles :
\nCorruption is a very big hurdle for doing business. It is a barrier to the effective development of the private sector and poses business risks.<\/p>\n

9) Changing regulatory frame work:
\nA changing regulatory environment is always of concern in certain industries. Two key areas of regulatory challenges are taxes and health care. The threat of increased costs due to new carbon taxes and presser to “go green” is another challenge.<\/p>\n

10) Transparency and governance :
\nCorporate governance involves organizing and prioritizing a variety of interests. Modern companies are in surveillance of transparency and governance issues.<\/p>\n

11) Corporate social responsibility:
\nThe practical implementation of corporate social responsibility is facing lot of problems. Lack of understanding, inadequate trained personnel, coverage, etc. are a few hurdles of CSR programmes.<\/p>\n

12) Foreign exchange risk :
\nForeign exchange risk is another factor causing constant instability in the running of business organisation.<\/p>\n

13) Security Issues:
\nSecurity threat to business has become more pronounced in 21st<\/sup> century. With the proliferation of Electronic Commerce and the “Virtual Office”, threats are becoming everyday occurrence to business.<\/p>\n

14) Human resource challenges:
\nOne of the biggest challenges of 21st<\/sup> century business is human resources – finding the right staff, training, and retaining them are concerns of the HR function.<\/p>\n

Short Answer Questions<\/span><\/p>\n

Question 1.
\nExplain the scope of E-business.
\nAnswer:
\nThe scope of E-business can be divided into following areas :
\na) E-business within the organisation
\nb) Business to business (B2B) dealing
\nc) Business to customer (B2C) transactions
\nd) Customer to customer (C2C)
\ne) Customer to business (C2B)<\/p>\n

The following a and b category E-business refers to an exchange of production and services by one business and another business from a business to a customer and c and d category E-business refers to transactions are being facilitated by websites where customers offer their products online, to be bought by other customers and provision of project work by customers on internet to the needy companies.<\/p>\n

Some other important aspects of e – business, which are successfully carried through the internet, are e – auctioning, e – banking, e – directories, e – trading, etc. In the age of e – commerce almost everything from gym equipment to laptops are available online. Even people are also buying services online. Business consultants, lawyers and doctors are offering their services or advices to their potential clients via internet.<\/p>\n

\"AP<\/p>\n

Question 2.
\nWhat are the benefits ofE – business to organizations?
\nAnswer:
\nThe following are the benefits of E-business to organizations.
\ni) Reach beyond boundaries:
\nExtends the market place to national and international markets.<\/p>\n

ii) Cost savings :
\nReduces the cost of creating, processing, distributing, storing and retrieving information. Allows reduced inventories and overheads.<\/p>\n

iii) Competitive benefits:
\nReduced processing time allows for customization of products and services for achieving competitive advantages.<\/p>\n

iv) Earlier capital collection :
\nReduces the time between the outlay of capital and the receipt of products and services.<\/p>\n

Question 3.
\nWhat are the benefits ofE – business to customers?
\nAnswer:
\nThe following are the benefits of E – business to customers.
\ni) Shopping at ease:
\nE-business enables customers to shop or do other transactions 24 hours a day, round the year from almost any location.<\/p>\n

ii) Wide choice :
\nCustomers will have more choices or more alternative products and services.<\/p>\n

iii) Price savings :
\nE-business provides customers with less expensive products and services.<\/p>\n

iv) Exchange of information :
\nAllows customers to interact with other customers and exchange their opinions and experiences on products purchased.<\/p>\n

Question 4.
\nBriefly outline the risks faced while involving in a E-business transaction.
\nAnswer:
\nThe following are the risks faced while involving in a E-business transaction.<\/p>\n

    \n
  1. Risk of the information being unauthorized altered while travelling the internet.<\/li>\n
  2. Risk related to confidentiality of personal information and banking information.<\/li>\n
  3. Risk relating to legal enforceability of transactions.<\/li>\n
  4. Risk of failure of electronic communications.<\/li>\n
  5. Risk to the management in controlling and clearing the E-commerce transactions.<\/li>\n
  6. Risks relating to technology like viruses and hacking.<\/li>\n<\/ol>\n

    Question 5.
    \nWhat are the benefits of E-business to society?
    \nAnswer:
    \nThe following are the benefits of E-business to the society.<\/p>\n

    i) Environmental benefits:
    \nEnables more individuals to work at home and to do less travelling for shopping, resulting in less traffic on the roads, and lower air pollution.<\/p>\n

    ii) Public welfare:
    \nAllows some merchandise to be sold at lower prices benefiting the poor ones.<\/p>\n

    iii) Availability of products:
    \nEnables people in Third World countries and rural areas to enjoy produces and services which otherwise are not available to them.<\/p>\n

    Very Short Answer Questions<\/span><\/p>\n

    Question 1.
    \nbusiness [May 17-T.S.]
    \nAnswer:
    \nThe term ‘E-business’ refers to the integration of business tools based on ICT to improve the functioning of the company. The term e-business was first used by IBM in 1997. It defined E-business as “the transformation of key business processes through the use of internet technologies”. E-business uses web based technology to improve relationship with customers.<\/p>\n

    Question 2.
    \nE-banking [Mar. 2019, 15 -T.S.]
    \nAnswer:
    \nElectronic banking is one of the most successful online businesses. E-banking allows customers to access their accounts and execute orders through use of website. Online banking allows the customers to get their money from an Automated Teller Machine (ATM), instead of walking up to the cash desk in the bank, can view their accounts, transfer funds and can pay bills. Eg. Net Banking.<\/p>\n

    \"AP<\/p>\n

    Question 3.
    \nE-marketing
    \nAnswer:
    \nElectronic marketing provides a worldwide platform for buying and selling of goods without having any geographical barriers. The internet allows companies to react to individual customer demands immediately without any loss of time. It does not matter where the customer is located by e-mails, etc.<\/p>\n

    Question 4.
    \nE-commerce
    \nAnswer:
    \nTransacting or facilitating business through Internet is called E-commerce. E-commerce is short for “Electronic commerce”. A form of business transactions conducted electronically in E-commerce.<\/p>\n

    Question 5.
    \nE – auctioning
    \nAnswer:
    \nThe internet enables people to participate in the auction without sacrificing their personal time. In E – auctioning the people, who want to participate in the auction, visit the website with a click and go through the details of goods offered.<\/p>\n

    \"AP<\/p>\n

    Question 6.
    \nE – trading [Mar. 17 – T.S.]
    \nAnswer:
    \nE-trading is also known as “online trading” or E – broking. It is used for buying and selling stocks in stock exchanges.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Andhra Pradesh BIEAP AP Inter 1st Year Commerce Study Material 12th Lesson Emerging Trends in Business Textbook Questions and Answers. AP Inter 1st Year Commerce Study Material 12th Lesson Emerging Trends in Business Essay Answer Questions Question 1. Define E – business and explain the scope of E – business. Answer: Ther term E-business refers … Read more<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[14],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/apboardsolutions.in\/wp-json\/wp\/v2\/posts\/22828"}],"collection":[{"href":"https:\/\/apboardsolutions.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apboardsolutions.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apboardsolutions.in\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/apboardsolutions.in\/wp-json\/wp\/v2\/comments?post=22828"}],"version-history":[{"count":1,"href":"https:\/\/apboardsolutions.in\/wp-json\/wp\/v2\/posts\/22828\/revisions"}],"predecessor-version":[{"id":22829,"href":"https:\/\/apboardsolutions.in\/wp-json\/wp\/v2\/posts\/22828\/revisions\/22829"}],"wp:attachment":[{"href":"https:\/\/apboardsolutions.in\/wp-json\/wp\/v2\/media?parent=22828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apboardsolutions.in\/wp-json\/wp\/v2\/categories?post=22828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apboardsolutions.in\/wp-json\/wp\/v2\/tags?post=22828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}