RBSE Solutions Class 11 Business Studies Chapter 9 Recent Trends of Business

Rbse Class 11 Business Studies Chapter 9 Textual Questions And Answers

Rbse Class 11 Business Studies Chapter 9 Multiple Choice Questions

 

Question 1. This is not included in e-commerce
(a) a business or mutual contract with its suppliers
(b) the mutual contract of a business with its customers
(c) the contract of a business with its geographically spread-out units
(d) a mutual contract between various departments of a business
Answer: (d) a mutual contract between various departments of a business
In simple words: E-commerce mainly deals with transactions between a business and its customers, suppliers, or even different parts of the business across locations. It does not usually involve internal communication or contracts within different departments of the same business that are not geographically separated.

🎯 Exam Tip: Remember that e-commerce focuses on external interactions, especially sales and procurement, rather than internal administrative processes within one physical business location.

 

Question 3. This is not an application of e-commerce
(a) online trading
(b) contract research and development
(c) online bidding
(d) online acquisition
Answer: (b) contract research and development
In simple words: E-commerce is mostly used for buying and selling things online, like trading or bidding for items. Contract research and development is usually a more complex and long-term activity that doesn't fit the typical e-commerce model.

🎯 Exam Tip: When identifying e-commerce applications, think about activities that involve immediate transactions, digital marketplaces, or direct buying and selling over the internet.

 

Question 4. A call centre conducts
(a) both customer-oriented and back-office business
(b) both inbound and outbound voice-based business
(c) only inbound voice-based business
(d) only outbound voice-based business
Answer: (c) only inbound voice-based business
In simple words: A call centre specifically handles phone calls. Inbound calls are those coming from customers, and outbound calls are made by the call centre to customers. The question implies a singular focus, so "voice-based" makes it clear.

🎯 Exam Tip: Call centres are defined by their voice communication, so look for options that clearly state 'voice-based' and consider if they handle incoming (inbound) or outgoing (outbound) calls, or both.

 

Question 5. Outsourcing-
(a) provides both vital and non-vital contracts for service processes and also production and research and development, outside. It is limited only to the domestic sector.
(b) outsourcing outside geographical boundaries of the countries is also included in it. (c) prohibits contracting non-vital commercial processer outside.
(d) only prohibits information technology derived services to be contracted outside.
Answer: (a) provides both vital and non-vital contracts for service processes and also production and research and development, outside. It is limited only to the domestic sector.
In simple words: Outsourcing means getting work done by another company. This can include important tasks or less important ones, from making products to doing research, but it usually refers to work done within the same country. This helps businesses focus on their main strengths.

🎯 Exam Tip: Understand that outsourcing covers a broad range of activities and can involve both essential and non-essential tasks, though the question's specific option limits it to the domestic sector. Always read all parts of the option carefully.

 

Question 2. What is mobile e-commerce?
Answer: Mobile e-commerce refers to buying or selling products and services with the help of wireless handheld devices. This includes tools like mobile phones or personal digital assistants. It allows transactions to happen easily on the go, making shopping more flexible.
In simple words: Mobile e-commerce is buying or selling things using your phone or other small wireless devices.

🎯 Exam Tip: When defining mobile e-commerce, highlight the 'wireless handheld device' aspect and the 'buying/selling products/services' activity.

 

Question 3. What is BPO?
Answer: BPO stands for Business Process Outsourcing. It means giving the responsibility of completing a specific task or a set of tasks to another company or party. This allows the main company to focus on its core business activities, improving efficiency.
In simple words: BPO is when a company gives some of its work to another company to do.

🎯 Exam Tip: The key idea of BPO is "contracting out" or "giving responsibility to another party" for specific business tasks.

 

Question 4. What is the utility of franchisee?
Answer: The main benefit for a franchisee is that they can start a business quickly using an established brand name and trademark. They do not need to build resources or basic infrastructure from scratch. This reduces the risk and initial effort for the new business owner.
In simple words: A franchisee can start a business easily because they use an already famous brand name and don't have to build everything themselves.

🎯 Exam Tip: Focus on the advantages for the franchisee, such as leveraging an existing brand, reduced setup effort, and lower risk, when explaining utility.

Rbse Class 11 Business Studies Chapter 9 Short Answer Type Questions

 

Question 1. Mention the types of franchisees.
Answer: Franchisees can be divided into three main categories based on their operational size and reach:
1. Small-sized franchisee – These franchisees operate within a limited area, such as a single city, town, or even a small block. They serve a local customer base.
2. Medium-sized franchisee – These franchisees cover a wider area, usually one or more districts. They have a broader regional presence.
3. Large-sized franchisee – These franchisees operate on a much larger scale, extending their reach to regional or metropolitan levels. They have a significant market presence in major areas.
In simple words: Franchisees come in three types: small (for a city), medium (for a district), and large (for big regions).

🎯 Exam Tip: Clearly state the three types and briefly describe the geographical scope of each, from local to regional/metropolitan.

 

Question 3. State two points of difference between e-business and e-commerce.
Answer: Here are two main differences between e-business and e-commerce:
• The scope of e-business is much wider than e-commerce. E-business includes all business activities done online, while e-commerce focuses mainly on buying and selling goods and services.
• E-business includes all online activities like sales, providing services, and working with partners. In contrast, e-commerce specifically involves transactions carried out using the internet.
In simple words: E-business covers all online work, while e-commerce is just about buying and selling online.

🎯 Exam Tip: Emphasize that e-business is a broader term encompassing all online operations, whereas e-commerce is a subset focusing on financial transactions.

 

Question 4. Describe any three points of assistance given to the users by Internet Commerce.
Answer: Internet commerce offers several benefits to its users. Here are three key points of assistance:
• Online businesses can operate 24 hours a day, every day of the year. This means users can place orders or get information anytime they want, making it very convenient.
• The internet allows for many more transactions to happen. Often, a single click of a mouse is enough to complete a purchase, making the process fast and easy.
• Users can easily search through a wide variety of products and services online. This helps them find detailed information before making a purchase, aiding in better decision-making.
In simple words: Internet commerce helps users by being open all the time, making transactions quick with just a click, and letting them find lots of product information easily.

🎯 Exam Tip: When listing benefits of internet commerce, focus on convenience (24/7 access), efficiency (quick transactions), and information access (product search) for users.

 

Question 5. Explain the stages of an online transaction.
Answer: The process of an online transaction typically goes through several stages. These steps ensure a smooth flow from interest to delivery.
The procedure for online transactions includes:
1. Pre-Sale-Purchase Stage - This initial stage involves propaganda and publicity. Businesses share information about their products or services to attract potential customers.
2. Sale-Purchase Stage - This stage includes all activities related to buying and selling, except for the actual delivery. Information is exchanged, and the transaction is processed, often without the usual time and investment barriers of traditional business.
3. Delivery Stage – This stage involves the actual handover of products or services.
Within these stages, specific steps like:
(1) Registration – The buyer must register online with the seller, creating an account with a password. This password keeps the buyer's shopping cart and personal information secure.
(2) Sending Order – After selecting products from the online shopping cart, the buyer can confirm the order and choose a payment option.
(3) Payment System – Buyers can choose from options like:
(a) Cash Payment on delivery.
(b) Cheque payment on delivery.
(c) Net banking transfer – Where payment is transferred to the seller's bank account before delivery.
4. Credit and Debit Card – These are often called 'Plastic Money'. A credit card lets you buy things on credit, with the bank taking on the debt. A debit card lets you buy up to the amount available in your bank account. These cards are crucial for secure online payments.
In simple words: Online transactions involve stages like showing ads, buying/selling, and delivery. Key steps include registering, placing an order, and choosing how to pay, often using cards or net banking.

🎯 Exam Tip: Break down the online transaction into clear, logical stages (pre-sale, sale, delivery) and then list the specific actions within these stages like registration, ordering, and payment methods. Ensure all payment options are covered.

 

Question 2. Describe in detail the various concepts of business to customer commerce.
Answer: Business to Customer (B2C) e-commerce involves interactions between businesses and individual consumers. It is the exchange of products, services, or information directly from a company to a customer. This type of e-commerce includes financial transactions or online sales between a business and a consumer, often facilitated by websites.
In B2C, companies can easily introduce new products to the market, and the cost of advertising is often lower compared to traditional methods. Customers frequently make impulse purchases and tend to make buying decisions independently. They can browse products online, learn about merchandise through the internet, and make selections. B2C platforms operate continuously, 24 hours a day, 7 days a week, and provide information as well as products like software, films, and music. Payments can be made using e-banking, debit cards, credit cards, or other digital means.
Companies are using B2C to get closer to their customers by providing them with exactly what they need. They can understand customer needs through online trading systems. Customers can also contact call centres at any time to resolve problems or register complaints. This direct relationship helps build loyalty.
In simple words: B2C e-commerce is when businesses sell things directly to individual customers online. It helps companies show new products, lowers advertising costs, and lets customers buy easily with many payment options.

🎯 Exam Tip: When explaining B2C, highlight the direct relationship between businesses and individual consumers, the convenience for customers, and the various payment methods available. Mention how it helps businesses understand customer needs.

 

Question 3. Explain network marketing in detail.
Answer: Network marketing, often linked with the internet, is very important in today's business world. The internet itself is a huge system of interconnected computers spread globally, allowing information to be accessed from any single computer. Because the internet is such a vast network for sharing messages, it has become a vital part of both e-commerce and mobile commerce.
Here are some key aspects:
• Information about any topic can be found easily through the World Wide Web. This vast pool of knowledge helps businesses and customers alike.
• News from major newspapers and TV channels can be read or watched online, providing instant updates.
• E-mail allows for easy message exchange. When two parties are connected to the internet, they can communicate and send messages quickly.
• Files, pictures, and even animations can be transferred easily from one location to another, supporting multimedia content in business.
• Customers can search for products and services online, making purchasing convenient.
• Organizations can create websites to provide detailed information about their products and services.
In simple words: Network marketing uses the internet, which is a huge web of computers, to share information, news, and messages quickly. This helps businesses sell things online, makes communication easy, and lets customers find products easily.

🎯 Exam Tip: Define network marketing by explaining its reliance on the internet as a global network. List its practical benefits, such as information access, communication, and product promotion, to score well.

 

Question 4. Write an article on BPO.
Answer: Business Process Outsourcing (BPO) means 'contracting another service provider'. It represents a significant trend in how businesses are reorganizing themselves. BPO involves a long-term agreement where a company gives away secondary or non-essential tasks, or even some major activities, to external specialists. This helps the company benefit from the experience, expertise, efficiency, or investment of these third-party providers.
**The key characteristics of BPO are:**
• Companies can get services from outside providers that they used to do themselves. This includes a wide range of operational support.
• Only secondary (non-essential) business activities are typically entrusted to BPO providers. Core business functions are usually kept in-house.
• Outsourcing processes can be done either with affiliated companies or with entirely independent third parties.
**Scope of Outsourcing:**
Four main elements included in outsourcing are: contract creation, contract research, contract marketing, and information science. These areas benefit from specialized external expertise.
**Need for Outsourcing:**
The need for outsourcing and its advantages include:
1. Focusing on Attention – By outsourcing routine back-office operations, managers gain freedom to concentrate on the primary business goals, such as sales growth and new product development.
2. Cost Reduction – Outsourcing helps reduce administrative and other costs through improved processes, re-engineering, and the use of technology. This makes operations more economical.
3. Exemption from labour problems – It often requires less manual labour and human effort, thereby simplifying workforce management.
4. Benefits of Modern Development – BPO provides access to expert services and modern techniques, which ultimately benefits the companies by enhancing efficiency.
**Concerns over Outsourcing are:**
1. Confidentiality – Outsourcing information systems can sometimes make it harder to maintain proper confidentiality and secrecy of sensitive data.
2. Sweat Shopping - BPO sometimes focuses on 'activity skills' rather than 'thinking skills', offering services at minimal rates. This can lead to countries with BPOs not earning as much as they could.
3. Ethical Concern – Some countries with BPOs have faced ethical issues, including concerns about child labor, gender inequality, and other unfair practices.
4. Resentment in Home Countries – When tasks and jobs move out of a country, it can lead to an outflow of employment and job opportunities, potentially increasing unemployment in the home country.
In simple words: BPO is when a business hires another company to do some of its work, often non-essential tasks. This helps the business save money and focus on its main goals. However, it can also lead to problems like issues with keeping information private or losing jobs in the home country.

🎯 Exam Tip: Structure your article on BPO by defining it, outlining its characteristics, explaining its scope and advantages, and finally discussing the key concerns associated with it. Use clear headings for each section.

 

Question 5. Describe in detail the growing importance of franchisee in the development of modern business.
Answer: Franchising is a business system where one firm uses a successful business model developed by another. The increasing importance of franchisees in modern business is due to several reasons, as they offer unique benefits to entrepreneurs.
1. Minimum Investment – Becoming a franchisee often requires less initial investment because the business model is already established. A franchisee typically leases or rents the business for a period, rather than buying it outright. This allows more people to start a business according to their budget and interests.
2. Training and Technical Knowledge – Franchisees usually receive training and technical support from the franchisor. This means the franchisee does not need extensive prior business knowledge, deep social networks, or high-risk tolerance. Franchisors often provide national or international advertising, training, and both tangible and intangible support services, which greatly assists the new business owner.
3. Business on the available trademark - A major advantage of franchising is using an existing, recognized trademark. This helps the business quickly gain trust and customers without having to build a brand from scratch.
6. To get established in the market in a short time – Established companies can allow others to use their well-known brand names under certain conditions. This helps the business grow quickly and avoids the need for constant corrections or repeated efforts to build market presence.
In simple words: Franchising is very important for modern businesses because it lets people start a business with less money and risk, using a famous brand. The main company gives support and training, helping the new business grow fast in the market.

🎯 Exam Tip: When discussing the importance of franchising, highlight the advantages for franchisees such as lower investment, established brand recognition, and comprehensive support (training, marketing). Also mention the benefit of quick market entry.

Rbse Class 11 Business Studies Chapter 9 Additional Questions And Answers

Rbse Class 11 Business Studies Chapter 9 Multiple Choice Questions

 

Question 1. The online transaction of products and services is called
(a) E-Commerce
(b) Communication
(c) Business Process Outsourcing
(d) None of these
Answer: (a) E-Commerce
In simple words: Buying and selling goods or services online is known as E-Commerce. It uses the internet for all sales and purchases.

🎯 Exam Tip: E-commerce specifically refers to commercial transactions conducted electronically, especially over the internet. Distinguish it from broader terms like e-business or BPO.

 

Question 2. The transaction of products, services and information between two business companies is called
(a) C2C
(b) C2B
(c) B2B
(d) D2C
Answer: (c) B2B
In simple words: When one business sells something to another business, it's called Business-to-Business, or B2B. This is different from selling directly to customers.

🎯 Exam Tip: Memorize the common e-commerce models: B2C (Business to Consumer), C2C (Consumer to Consumer), and B2B (Business to Business) to correctly identify transaction types.

 

Question 4. The full form of www is
(a) Wide Web World
(b) Web Wide World
(c) World Wide Web
(d) World Web Wide
Answer: (c) World Wide Web
In simple words: WWW stands for World Wide Web. It is the global system of linked computer documents that you access over the internet.

🎯 Exam Tip: Ensure you know the full forms of common internet and e-commerce abbreviations to answer such questions accurately.

 

Question 5. Advantage of E-commerce is
(a) Detailed investigation
(b) Better Customer Service
(c) Time Saving during Transaction
(d) All of the options
Answer: (d) All of the options
In simple words: E-commerce helps customers check products carefully, get better service, and save time when buying things. All these are good points.

🎯 Exam Tip: E-commerce offers many benefits to both businesses and consumers, including efficiency, improved service, and detailed information access, making "All of the options" a common correct answer for such broad questions.

 

Question 6. Which company made the SMS service centre?
(a) Nokia
(b) Yellow Computing
(c) Dr Meterena
(d) Self
Answer: (c) Dr Meterena
In simple words: The SMS service, which lets us send short text messages, was created by Dr. Meterena. He played a key role in developing this communication method.

🎯 Exam Tip: For historical or specific invention questions, direct recall of facts is important. Remembering key figures or companies associated with technologies can be helpful.

 

Question 8. The word 'franchise' has its origin in the Anglo-French word
(a) Frankers
(b) Francese
(c) Frankle
(d) Frank
Answer: (a) Frankers
In simple words: The word 'franchise' comes from the old Anglo-French word "Frankers". This origin tells us about the historical meaning of freedom or privilege.

🎯 Exam Tip: Pay attention to the origins of business terms as they often reveal their foundational meaning and can be tested in exams.

 

Question 9. The place of origin of the franchise is -
(a) Brazil
(b) China
(c) India
(d) USA
Answer: (d) USA
In simple words: Franchising, as we know it today, first started in the USA. It began there before spreading to other parts of the world.

🎯 Exam Tip: Specific historical facts, like the origin of a business concept, are important to remember for general knowledge questions.

 

Question 10. China enacted its law on the franchisee in the year
(a) 2009
(b) 2008
(c) 2007
(d) 2006
Answer: (c) 2007
In simple words: China made its law about franchisees in 2007. This law helped set rules for how franchising works in the country.

🎯 Exam Tip: Legal and historical dates related to business practices are often tested. Knowing key dates for specific regulations can be very useful.

Rbse Class 11 Business Studies Chapter 9 Very Short Answer Type Questions

 

Question 2. What is B2C?
Answer: B2C stands for Business to Customer e-commerce. It is a type of electronic transaction where businesses sell products, services, or information directly to individual consumers. This model is very common for online retail.
In simple words: B2C means when a business sells products or services directly to a customer using the internet.

🎯 Exam Tip: Clearly define B2C as transactions between businesses and individual consumers. Emphasize the direct nature of the interaction.

 

Question 3. What do you mean by E-business?
Answer: E-business refers to conducting all business operations using a computer network, primarily the internet. This includes various activities like managing operations, buying, selling, and providing services. It covers a broader range of activities than just e-commerce.
In simple words: E-business is doing any business task, like buying or selling, with the help of the internet.

🎯 Exam Tip: Differentiate e-business from e-commerce by highlighting that e-business encompasses all online operations, not just sales and purchases.

 

Question 4. State two advantages of E-Commerce.
Answer: Two main advantages of E-commerce are:
• Better customer service: E-commerce platforms can offer personalized experiences and quick support, leading to higher customer satisfaction. This improves loyalty.
• Less time consumed in transactions: Online transactions are often faster and more efficient than traditional methods, saving time for both buyers and sellers.
In simple words: E-commerce gives better service to customers and saves a lot of time during buying and selling.

🎯 Exam Tip: When listing advantages, focus on clear and distinct benefits like improved customer experience and operational efficiency. Keep the explanations concise.

 

Question 5. State two defects of E-commerce.
Answer: Two main defects of E-commerce are:
• No personal contact: E-commerce lacks the face-to-face interaction found in traditional shopping, which some customers prefer. This can make it harder to build strong relationships.
• Includes more risk: Online transactions can involve risks like data security breaches, fraud, or issues with product quality and delivery.
In simple words: E-commerce has problems like no face-to-face contact with sellers and more risks with online payments and products.

🎯 Exam Tip: For defects, concentrate on the lack of human interaction and the inherent security and trust risks associated with online transactions.

 

Question 6. Mobile commerce is based on which technology?
Answer: Mobile commerce is primarily based on WAP (Wireless Application Protocol) technology. This protocol allows mobile devices to access internet services. It enables various mobile-based transactions and content delivery.
In simple words: Mobile commerce uses WAP (Wireless Application Protocol) technology.

🎯 Exam Tip: Remember the specific technology or protocol associated with mobile commerce, which is WAP for enabling internet access on mobile devices.

 

Question 8. Who initiated the first e-commerce service for cell-phone?
Answer: France Telecom initiated the first e-commerce service for cell phones. They were pioneers in bringing commercial transactions to mobile devices. This marked an early step towards modern mobile commerce.
In simple words: France Telecom started the first e-commerce service for mobile phones.

🎯 Exam Tip: For questions about the originators of specific technologies or services, identifying the correct company or individual is crucial.

 

Question 9. Name one assistance provided by the Internet to its users.
Answer: One important assistance provided by the Internet to its users is E-mail. E-mail allows for instant communication, document sharing, and collaboration across geographical distances. It connects people worldwide.
In simple words: The internet helps users by providing e-mail, which is a fast way to send messages.

🎯 Exam Tip: When asked for assistance from the internet, a common and easily identifiable example like "E-mail" is a good choice due to its widespread utility.

 

Question 10. Before 1979, the Internet was known as -
Answer: Before 1979, the Internet was known as ARPANET. This was an early packet-switching network that became the technical foundation for the Internet. It played a crucial role in developing communication technologies.
In simple words: Before 1979, the internet was called ARPANET.

🎯 Exam Tip: Historical names of key technologies like ARPANET are important to remember for questions about the evolution of the internet.

 

Question 11. How many stages does online marketing have to go through, according to the trend?
Answer: According to current trends, online marketing typically goes through three main stages:
• Pre-sale-purchase stage: This involves activities like advertising and providing information to attract potential buyers.
• Sale-purchase stage: This is where the actual buying and selling transactions occur, facilitated by online platforms.
• Delivery stage: This is the final step where the purchased products or services are delivered to the customer.
In simple words: Online marketing has three steps: before selling (like ads), during selling (the actual buy/sell), and after selling (delivery).

🎯 Exam Tip: List the three stages clearly and briefly explain what each stage involves to demonstrate a full understanding of the online marketing process.

 

Question 12. In the pre-sale-purchase stage, what kind of information is given regarding online marketing?
Answer: In the pre-sale-purchase stage of online marketing, propaganda and publicity information is primarily given. This means businesses focus on advertising their products and services to potential customers. The goal is to create awareness and interest before the actual purchase.
In simple words: In the first stage of online marketing, companies give out information through ads and publicity to tell people about their products.

🎯 Exam Tip: Focus on the terms 'propaganda' and 'publicity' to accurately describe the information shared during the pre-sale-purchase stage.

 

Question 13. What is a Shopping Cart?
Answer: A shopping cart is a virtual tool on e-commerce websites where customers can collect products they wish to buy before checkout. It acts like a physical shopping cart, allowing users to add, remove, or modify items. This helps in managing potential purchases.
In simple words: A shopping cart is like a digital basket on a website where you put items you want to buy.

🎯 Exam Tip: Define a shopping cart as a virtual container on e-commerce sites, explaining its function of holding selected items before the final purchase.

 

Question 15. What elements are included in BPO?
Answer: BPO, or Business Process Outsourcing, typically includes several key elements:
• Contract Creation: This involves drafting and finalizing agreements for outsourced services.
• Contract Research: Outsourcing research activities, such as market analysis or product development research.
• Contract Marketing: Engaging external firms to handle marketing campaigns and strategies.
• Information Science: Outsourcing tasks related to data management, analysis, and information technology.
In simple words: BPO includes tasks like making contracts, doing research, marketing, and managing information, all done by outside companies.

🎯 Exam Tip: When listing elements of BPO, focus on the different business functions that can be outsourced, such as contractual, research, marketing, and IT-related activities.

 

Question 16. State two advantages of BPO.
Answer: Two key advantages of BPO are:
• Reduction in cost: Outsourcing non-core activities to regions with lower labor costs can significantly reduce operational expenses for a company. This improves profitability.
• Use of External expertise: BPO allows businesses to access specialized skills and knowledge that might not be available internally, leading to higher quality work and efficiency.
In simple words: BPO helps companies save money and lets them use experts from other businesses.

🎯 Exam Tip: When stating advantages of BPO, clearly mention cost savings and access to specialized expertise as these are fundamental benefits.

 

Question 17. State two demerits of BPO.
Answer: Two main demerits of BPO are:
• Lack of Secrecy: Sharing sensitive business information with an external party can lead to concerns about data security and confidentiality. There is a risk of information leakage.
• Contract-related problems: Issues can arise from poorly drafted contracts, disputes over service quality, or disagreements on terms and conditions with the outsourcing partner.
In simple words: BPO can cause problems like sensitive information not staying secret and issues with contracts or agreements with the outsourced company.

🎯 Exam Tip: When listing demerits of BPO, focus on potential risks such as breaches of confidentiality and difficulties in managing contractual relationships with third-party providers.

 

Question 18. What is Franchising?
Answer: Franchising is a business model where an established company (the franchisor) grants permission to another party (the franchisee) to use its business model, brand name, and operational methods. The franchisee pays fees and royalties for this right. It is a popular way to expand a business.
In simple words: Franchising is a business method where you pay to use a successful company's name and way of doing business.

🎯 Exam Tip: Define franchising by highlighting the relationship between the franchisor and franchisee, emphasizing the use of an established business model and brand in exchange for fees.

 

Question 20. What do you mean by a small-size franchisee?
Answer: A small-size franchisee operates within a limited local area, such as a single city, town, or block. This helps in focusing efforts on a specific market.
In simple words: A small franchisee runs a business only in one small area, like a single city or town.

🎯 Exam Tip: When defining terms, always mention the key characteristics that differentiate it from other types.

 

Question 21. The origin of the franchisee is in which country?
Answer: The concept of the franchisee originated in the United States of America. This country played a significant role in developing franchise models.
In simple words: Franchising started in the USA.

🎯 Exam Tip: Knowing the origin helps in understanding the historical context and evolution of business concepts.

 

Question 22. Name any two franchises.
Answer:

• Subway Sandwich and Salad
• McDonald's Cafe Coffee Day

These are popular examples of food and beverage franchises found globally.
In simple words: Two well-known franchises are Subway and McDonald's.

🎯 Exam Tip: When asked for examples, choose widely recognized brands that clearly illustrate the concept.

 

Question 23. According to the International Franchise Association, how much business in the USA is conducted through franchises?
Answer: According to the International Franchise Association, 4% of all business in the USA is conducted through franchises. This shows that franchising is a notable part of the economy.
In simple words: 4% of all business in the USA is done using franchises.

🎯 Exam Tip: Precise statistics, when available, should be quoted accurately to show depth of knowledge.

 

Question 24. A contract between franchisor and franchisee is established under which Act?
Answer: A contract between a franchisor and a franchisee is set up under the Contract Act 1872 and the Special Allowance Act 1963. These acts provide the legal framework for such business agreements.
In simple words: The contract between a franchisor and a franchisee is guided by the Contract Act of 1872 and the Special Allowance Act of 1963.

🎯 Exam Tip: Always specify the exact legal acts or provisions when discussing legal frameworks in business.

Rbse Class 11 Business Studies Chapter 9 Short Answer Type Questions (Sa - I)

 

Question 2. What is C2C E-Commerce?
Answer: C2C E-commerce involves transactions that happen directly between consumers, often with the help of a third-party platform. For example, in an online auction, one consumer sells an item, and other consumers bid to buy it. The third-party platform usually charges a service fee or commission to manage the transaction. Popular examples include OLX and eBay, which connect buyers and sellers directly.
In simple words: C2C E-commerce means one customer sells something to another customer, usually through a website like OLX or eBay, which helps manage the sale.

🎯 Exam Tip: Remember to include examples for clarity when explaining types of e-commerce to show a practical understanding.

 

Question 3. What is Digital Middlemen E-Commerce?
Answer: Digital Middlemen E-Commerce refers to a setup where a company creates a virtual community or online portal. This portal then includes several other companies or third-party businesses to operate commercially within this digital space. Essentially, the main company acts as a middleman, bringing together various services and products for consumers.
In simple words: Digital Middlemen E-commerce is when a company makes an online platform that brings many other businesses or companies together to sell things.

🎯 Exam Tip: Understand that digital middlemen facilitate transactions by providing a centralized platform for multiple businesses.

 

Question 4. State four merits of E-Commerce.
Answer:

• The reach of e-commerce extends globally, helping businesses find new international markets.
• It greatly improves customer service by offering faster and more convenient ways to interact.
• E-commerce helps in reducing the time needed for transactions, making processes quicker.
• It also helps lower investment and operational costs for businesses.
• It leads to an increase in the total volume of trade as it removes geographical barriers.

These advantages make e-commerce a powerful tool for modern businesses.
In simple words: E-commerce has many good points like reaching customers worldwide, better customer help, faster sales, lower costs, and more trade.

🎯 Exam Tip: When listing merits, try to provide a brief explanation for each point to demonstrate a complete understanding.

 

Question 5. What kind of transactions are involved in Mobile Commerce Application?
Answer: Mobile commerce applications involve various transactions primarily conducted through mobile phones. These include making payments for goods and services, ordering products online, and receiving information or services directly on the mobile device. Basically, any commercial activity performed via a mobile phone falls under mobile commerce.
In simple words: Mobile commerce involves buying things, making payments, and getting services using your mobile phone.

🎯 Exam Tip: Focus on the "mobile" aspect and how transactions are enabled by handheld devices and relevant technologies.

 

Question 7. In Net payment system, which options can be chosen by the buyers?
Answer: In a net payment system, buyers have several options to choose from:

• Cash payment on delivery: The buyer pays with cash when the product is delivered.
• Cheque payment on delivery: The buyer pays with a cheque upon receiving the product.
• Net banking transfer: The buyer transfers money directly from their bank account to the seller's account.
• Credit or Debit Card: The buyer uses their credit or debit card for immediate payment.
• Digital Cash: The buyer uses electronic currency for transactions.

These options offer flexibility and convenience for online purchases.
In simple words: Buyers can choose to pay with cash, cheque, net banking, credit/debit cards, or digital cash when buying things online.

🎯 Exam Tip: Remember to list all common payment methods, as a comprehensive answer scores better. Each option represents a different way to handle money electronically or physically.

 

Question 8. What is Credit and Debit Card? Explain.
Answer: Credit and Debit Cards are commonly known as 'plastic money' and are crucial for online transactions. A credit card allows the holder to make purchases on credit, with the issuing bank covering the debt initially. A debit card, on the other hand, lets the user buy things only up to the amount of money they have in their bank account. Both cards offer secure ways to conduct cashless transactions.
In simple words: Credit and debit cards are like plastic money. A credit card lets you buy now and pay later, while a debit card uses money directly from your bank account.

🎯 Exam Tip: Clearly distinguish between credit (borrowed money) and debit (your own money) functionality for full marks.

 

Question 9. What is Digital Cash?
Answer: Digital cash is a type of electronic currency that only exists in a virtual space, often called cyberspace. To use it, a customer first deposits an equivalent amount of real money (via cheque or draft) into a bank. The bank, which handles e-cash transactions, then provides special software that allows the customer to make digital withdrawals from their account. This digital cash can then be used to buy products or services from various websites. This system helps solve issues related to using multiple credit cards online. It offers a convenient and secure way to handle digital payments.
In simple words: Digital cash is electronic money that you use online. You put real money in a bank, and they give you software to use that money digitally for buying things on websites.

🎯 Exam Tip: Explain the process from depositing real money to making digital purchases to illustrate how digital cash functions.

 

Question 11. What is Franchising?
Answer: Franchising is a business system where one firm allows another firm to use its successful business model, trademark, and business know-how in exchange for a fee. The word 'franchise' comes from the Anglo-French word meaning 'free'. It gives the franchisee the option to set up a 'chain store' to distribute products and protects them from the initial risks and heavy investment of creating a new brand from scratch. This allows for wider market penetration.
In simple words: Franchising is when a company lets someone else use its proven business model and brand name to sell products or services, often for a fee.

🎯 Exam Tip: In your definition, include both the 'what' (using another's business model) and the 'why' (for expansion, risk reduction).

 

Question 12. Name any 5 franchisees.
Answer: Here are five examples of well-known franchises:

• Subway Sandwich and Salad
• McDonald's, Refresh, Cafe Coffee Day
• Eleven Inc (Convenience store)
• Hampton Inns and Sweets (minimum budget hotels)
• Supercuts (Hair Saloon)

These examples show the wide variety of businesses that use the franchise model, from food to services.
In simple words: Five famous franchises are Subway, McDonald's, Eleven Inc, Hampton Inns, and Supercuts.

🎯 Exam Tip: Always provide a diverse range of examples if possible to demonstrate a broad understanding of the concept.

 

Question 13. State 4 demerits of Franchisee.
Answer: Here are four disadvantages of being a franchisee:

• There is no absolute guarantee or warranty of success in a franchisee agreement, meaning risks still exist.
• Franchisee agreements can often be one-sided, favoring the franchisor more than the franchisee.
• In some low-cost franchise options, the training fees can be quite high, adding to the initial expense.
• The franchisor does not always promise success or profit, placing the primary responsibility for the business's performance on the franchisee.

These demerits highlight the challenges and potential downsides of entering a franchise agreement.
In simple words: Disadvantages of a franchisee include no guaranteed success, agreements that favor the franchisor, high training fees, and no promise of profit from the franchisor.

🎯 Exam Tip: When listing demerits, ensure each point identifies a specific drawback or risk associated with the business model.

Rbse Class 11 Business Studies Chapter 9 Short Answer Type Questions (Sa - Ii)

 

Question 2. Explain the resources of E-business.
Answer: E-business relies on several key resources for its operation:

1. Computer Hardware: The foundation of e-business is the internet, which requires modern, well-maintained, and fast computers to operate efficiently.
2. Technical Officer: A skilled technical officer is essential to manage the internet operations, receive orders, start processes, handle payments, and resolve technical issues.
3. Computerized Payment System: Businesses need a computerized system to receive payments, which involves setting up agreements with banks and credit card companies to process transactions smoothly.
4. Website Development: A professional website is necessary to connect with customers, display products, and facilitate online interactions.
5. Telephone Facility: Reliable telephone lines and internet connectivity are vital for communication with customers and for the overall functioning of online business activities.

These resources work together to create an effective digital business environment.
In simple words: E-business needs good computers, a technical person, systems to take payments, a website, and proper phone and internet connections to run well.

🎯 Exam Tip: When listing resources, categorize them clearly (e.g., hardware, human, technical) and explain the role of each in e-business.

 

Question 3. State three differences between E-business and Traditional business.
Answer: Here are three key differences between e-business and traditional business:

E-business leverages technology for wider reach and efficiency, while traditional business relies on physical interaction and infrastructure.
In simple words: E-business is easier to start, needs less money, but has more risk because you don't meet customers face-to-face. Traditional business needs more money and resources but has less risk as you meet customers directly.

🎯 Exam Tip: Always present differences in a comparative table format with clear bases of comparison to score maximum marks.

 

Question 5. What is the internet? Explain in detail.
Answer: The internet, also known simply as 'the Net', is a global network system that allows information collected by various computers worldwide to be accessed through any single connected computer. It provides access to a vast array of information on different subjects. The internet was first created in 1969 as a defense project by the Advanced Research Projects Agency (ARPA) of the US government, and it was initially named ARPANET. Later, it expanded into the academic and research fields. It became known as the internet to the general public from 1979 onwards and has since evolved into the global network we use today. It has revolutionized how people access and share information.
In simple words: The internet is a worldwide computer network that lets you find and share information from any computer. It started as a defense project in 1969 called ARPANET and grew into the global network we have now.

🎯 Exam Tip: When explaining concepts, include historical context and key milestones to provide a complete understanding.

 

Question 6. Explain the merits of BPO.
Answer: BPO (Business Process Outsourcing) offers several advantages:

1. More Attention on Core Business: By outsourcing routine back-office operations, managers can focus more time and energy on the company's main business activities, which are crucial for growth.
2. Cost Reduction: BPO helps reduce costs through improved processes, re-engineering, and the use of technology, which effectively controls administrative and other operational expenses.
3. Exemption from Labor Problems: Outsourcing often requires less labor and human effort for certain tasks, which can reduce labor-related issues and management complexities.
4. Benefits of Modern Development: BPO providers offer specialized expert services, allowing companies to benefit from modern techniques and advanced knowledge without needing to develop them in-house.

These merits allow businesses to achieve greater efficiency and competitive advantages.
In simple words: BPO helps businesses focus on their main work, cuts down costs, reduces problems with staff, and gives access to modern expert services.

🎯 Exam Tip: Structure your answer with clear headings or bullet points for each merit, followed by a concise explanation.

 

Question 7. State concerns over Outsourcing.
Answer: Outsourcing raises several concerns for businesses and countries:

1. Confidentiality: Outsourcing information systems can make it hard to keep sensitive data confidential and secure, increasing the risk of data breaches.
2. Sweat Shopping: Some BPOs focus on low-cost 'activity skills' rather than 'thinking skills', which might lead to minimum payment rates and reduce the earnings for the countries providing BPO services.
3. Ethical Concerns: Countries with BPOs may face ethical issues like child labor or gender inequality in the workplace due to pressure to reduce costs.
4. Resentment in Home Countries: When jobs are moved out of the home country, it can lead to public resentment and an increase in unemployment.

These issues highlight the complex impact of outsourcing, which balances cost savings with social and ethical responsibilities.
In simple words: Outsourcing can cause worries about keeping information private, low pay for workers, ethical problems like child labor, and job losses in the home country.

🎯 Exam Tip: When discussing concerns, provide specific examples or reasons why each point is a valid concern for a comprehensive answer.

 

Question 8. How does BPO represent new ways of doing business?
Answer: BPO (Business Process Outsourcing) represents new ways of doing business by allowing companies to specialize and improve efficiency. In traditional business, the owner often handles all tasks, which can lead to less specialization and lower productivity among employees. With BPO, companies can focus on their primary activities and outsource less important tasks to external firms that are experts in those specific areas. This leads to higher quality work output and reduced costs. By utilizing expert services, customers receive high-value products faster, and this approach also helps create more job opportunities. Therefore, BPO streamlines operations and fosters greater specialization in the business world.
In simple words: BPO changes business by letting companies hire experts outside for smaller tasks, so they can focus on their main work. This makes work better, faster, cheaper, and creates jobs.

🎯 Exam Tip: Emphasize the shift from a 'do-it-all' approach to specialization and efficiency facilitated by BPO.

Rbse Class 11 Business Studies Chapter 9 Essay Type Questions

 

Question 1. What do you mean by e-commerce? Explain its various types.
Answer: E-commerce, or electronic commerce, is a general term for all commercial transactions conducted using electronic mediums, primarily the internet. It enables customers and suppliers to exchange products, services, or information digitally. E-commerce incorporates various technologies such as Electronic Fund Interchange (EFI), electronic messaging, Electronic Fund Transfer (EFT), Electronic Bulletin Board (EBB), and database services. Essentially, it is a blend of communication technology and information systems applied to business transactions. The ease and speed of transactions make it a powerful tool for global trade.
Types of E-commerce:

1. Business to Business (B2B) E-Commerce: This involves commercial transactions for products, services, and information directly between two businesses. For example, a manufacturer buying raw materials from a supplier online.
2. Consumer to Business (C2B) E-Commerce: In this type, a consumer offers goods or services to a business. Reverse auctions are a good example, where a consumer sets a price for a product or service, and businesses bid to meet that price. For instance, an airline offering flight tickets at the lowest possible price to passengers.
3. Consumer to Consumer (C2C) E-Commerce: This refers to transactions between individual consumers, usually facilitated by a third-party platform. Online auction sites like eBay or OLX, where one consumer sells an item to another, are prime examples. The platform typically charges a fee for arranging the transaction.
4. Business to Government (B2G) E-Commerce: This type of e-commerce involves transactions between businesses and government entities. It includes processes like public acquisitions, licensing applications, and other government-related activities. Companies often use government websites to provide information about their products and services, allowing government agencies to place orders and receive customer support.
5. Digital Middlemen E-commerce: This involves an arrangement where a company establishes a virtual community or portal online, and numerous other companies or third parties operate within this community commercially. This model acts as an intermediary, bringing various offerings to consumers through a single digital platform.

In simple words: E-commerce means buying and selling things online using the internet. Its types include B2B (business to business), C2B (customer to business), C2C (customer to customer), B2G (business to government), and Digital Middlemen (companies helping other companies sell online).

🎯 Exam Tip: Define e-commerce broadly and then explain each type with a clear example to demonstrate understanding of its diverse applications.

 

Question 2. What are the Benefits and Demerits of E-Commerce?
Answer: E-commerce offers several benefits and also has certain demerits:
Benefits of E-Commerce:

1. Cost Reduction: E-commerce significantly reduces investment because products do not need to be stored in large warehouses, fewer employees are required, and advertising expenses are lower.
2. Best Customer Service: Companies can attract and retain customers by providing the latest product information on web portals, helping customers choose from many available options.
3. Time-Saving: Compared to traditional buying and selling, e-business saves time as product distribution channels are shorter, and customers can be reached directly and quickly.
4. Wide Access: E-commerce is not limited by national borders; its reach extends internationally, which helps businesses gather information about new global markets.

Demerits of E-Commerce:

1. Lack of Direct Contact: It does not involve direct physical contact with customers, which can be a drawback for products needing a personal touch.
2. Delayed Delivery: The physical delivery of products to the customer can take a long time, leading to unnecessary delays.
3. Inability to Inspect Product: Customers cannot physically see or touch the product before buying it, making it harder to check quality.
4. Technical Knowledge Required: All parties involved in e-commerce transactions must have adequate knowledge of technical language and online processes.
5. Stressful Returns: Returning products that do not meet expectations can be a complicated and time-consuming process.
6. Increased Risk: E-commerce carries a higher risk because a person's identity can be misused, and there's a risk of hacking into computer systems, leading to financial or psychological damage.

Understanding these points is essential for assessing the overall impact of e-commerce.
In simple words: E-commerce saves money and time, gives good customer service, and reaches people worldwide. But it also means no personal contact, slow delivery, cannot touch products, needs computer skills, and has more risks like hacking.

🎯 Exam Tip: Clearly separate benefits and demerits, listing a balanced number for each section, and provide brief explanations for every point.

 

Question 3. What are the limitations of e-business? Are these limitations enough to restrict its activity area? Debate.
Answer: E-business has several limitations:
Limitations of E-business:

1. Low Personal Touch: E-business, despite its extensive reach, lacks personal interaction. This makes it less suitable for products like clothing that require a more personal touch or fitting.
2. Incongruence of Order Fulfillment Speed: While an order can be placed with a single click online, the physical fulfillment and delivery take time. Technical issues or delays can make customers impatient.
3. Need for Computer Technology Knowledge: Both buyers and sellers must have a good understanding of computer technology to participate effectively in e-business transactions.
4. Increased Risk to Both Parties: Both buyers and sellers face significant risks. Identity theft, credit card fraud, and the threat of computer viruses or hacking are common concerns.
5. Popular Resentment: The shift to e-business can sometimes lead to public insecurity or negative perceptions, especially if people feel it displaces traditional jobs.
6. Ethical Fallouts: Some e-business practices can be unethical, such as using various software to collect and share customer data or email folders without consent. This can promote unethical acts.

In spite of these limitations, e-business is growing rapidly. Efforts are continuously being made to control these drawbacks and improve security and efficiency. The benefits often outweigh the challenges, especially with ongoing technological advancements.
In simple words: E-business has limits like less personal touch, slow delivery, needs computer knowledge, and higher risks like hacking. Also, some people don't like it, and there can be ethical issues. But even with these problems, e-business is still growing fast because people are working to fix them.

🎯 Exam Tip: When debating, present both sides (limitations and the counter-argument that they don't restrict growth) clearly and concisely to show a well-rounded understanding.

 

Question 4. State the difference between traditional business and e-business.
Answer: Here's a table showing the differences between traditional business and e-business:
Difference between Traditional Business & E-business

E-business thrives on digital platforms and global reach, while traditional business is physical and local, with distinct operational and risk profiles.
In simple words: E-business can reach worldwide, needs more people in some areas, has less government control, and more risk as there's no face-to-face contact. Traditional business is more local, needs fewer people, follows government rules closely, and has less risk because of direct contact.

🎯 Exam Tip: Always use a clear table format to compare and contrast, ensuring each point of comparison has corresponding information for both categories.

 

Question 5. What is E-business Risk? Explain its various types.
Answer: E-business risk refers to the possibility that an online business transaction might cause financial, mental, or physical harm. These risks are inherent to conducting business in a digital environment.
Types of risk involved are:

1. Transactional Risks: These risks arise during the actual exchange process:
   • (a) Mistake about transactional order: Either the buyer or the seller might deny placing or receiving an order, leading to disputes.
   • (b) The mistake of Delivery: Issues can include non-delivery, delivery to the wrong address, or delivery not matching the order.
   • (c) Mistake about Payment: The buyer might claim to have paid, while the seller denies receiving the payment, causing conflict.
2. Security Risks: This involves threats like hacking, data breaches, and cyber-attacks that can compromise sensitive information or disrupt operations.
3. Privacy Risks: Personal data shared online can be misused or exposed, leading to privacy violations.
4. Technical Risks: System failures, software glitches, or internet connectivity issues can interrupt business operations and transactions.
5. Reputational Risks: Negative online reviews, customer complaints, or security incidents can damage a business's reputation quickly.

It is important for businesses to manage these risks carefully to succeed in the digital world.
In simple words: E-business risks are problems that can cause financial or other harm during online sales. These include mistakes in orders, delivery, or payment, plus security threats like hacking, privacy issues, technical failures, and harm to the company's image.

🎯 Exam Tip: When explaining types of risks, provide specific examples for each category to make the concept clear and relatable.

 

Question 6. Why are BPO and e-business called growing trends? State the factors for these growing trends.
Answer: BPO (Business Process Outsourcing) and e-business are considered growing trends because they are transforming traditional business methods. Today, paper-free business is becoming the norm, with companies increasingly adopting BPO for diverse activities and focusing more on important core tasks. These two trends have completely changed the global business landscape, making the world seem like a connected family where contact is just a click away. They are continuously evolving, with more features expected to develop in the future. Their impact on global commerce is undeniable.
Factors contributing to these growing trends are:

1. Increasing Pressure of Competition: Intense competition forces businesses to maintain quality by offering high-value products at lower prices. E-business and BPO provide new techniques to meet customer demands quickly.
2. Specialization: Business is growing rapidly, leading to the creation of new, specialized products and services that can be better handled through outsourcing.
3. Origin of Digital System: The rise of digital systems has revolutionized the business world. Computers have introduced new levels of efficiency, shrinking the world and enabling instant global contact. This digital revolution gave birth to e-business and BPO.
4. Global Reach: Both e-business and BPO empower globalization, allowing sellers to market and sell their products anywhere in the world, expanding their customer base significantly.
5. Ease: As businesses increasingly adopt BPO, product delivery and service provision through e-business become simpler and more efficient for customers.
6. Focus on Quality Products: BPO enhances production and development by allowing producers to concentrate solely on their main business, which often leads to higher quality output.
7. Economic Development: BPO and e-business boost efficiency and employment, contributing positively to overall economic development by creating new opportunities and optimizing resource use.

In simple words: BPO and e-business are growing because of strong competition, a need for specialized products, the rise of digital technology, the ability to reach customers worldwide, ease of doing business, a focus on quality, and the way they help the economy grow.

🎯 Exam Tip: Explain both the 'why' (reasons for being trends) and the 'how' (factors driving them) to provide a comprehensive answer. Provide distinct points for each factor.

 

Concepts of BPO

Answer: The various concepts of Business Process Outsourcing (BPO) are:

1. Outsourcing Contracts: BPO involves 'contracting another service provider party'. It's a key trend restructuring business, involving long-term contracts given for secondary (non-essential) or even major activities to gain from the experience, expertise, efficiency, or investment of third-party specialists. This strategic decision helps companies focus on their strengths.
2. Outsourcing Non-Core Activities: Generally, businesses use BPO for non-vital or secondary activities, while they manage their main tasks themselves. For example, teaching is a primary activity for a school, but managing the canteen, bookstore, or vehicle stand are secondary. These secondary activities are outsourced to external experts.
3. Global Process Outsourcing: Processes can be outsourced to a third party, often a firm, company, or industrial group operating internationally. This means a company can outsource activities like recruitment or appointments to associate companies in different countries, allowing for operational flexibility and cost savings across borders.

In simple words: BPO is about hiring other companies to do some of your work, especially the less important tasks. This can be done locally or globally to use experts and save money.

🎯 Exam Tip: When discussing concepts, ensure each point clearly defines a specific aspect or characteristic of the topic.

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