NIOS Class 12 Business Studies Chapter 23 Modern Modes of Business

NIOS Class 12 Business Studies Chapter 23 Modern Modes of Business Solutions to each chapter is provided in the list so that you can easily browse throughout different chapters NIOS Class 12 Business Studies Chapter 23 Modern Modes of Business and select need one. NIOS Class 12 Business Studies Chapter 23 Modern Modes of Business Question Answers Download PDF. NIOS Study Material of Class 12 Business Studies Notes Paper 319.

NIOS Class 12 Business Studies Chapter 23 Modern Modes of Business

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Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 12 Business Studies Chapter 23 Modern Modes of Business, NIOS Senior Secondary Course Business Studies for All Chapter, You can practice these here.

Modern Modes of Business

Chapter: 23

Module – 6 Awareness in Business and Employment

INTEXT QUESTIONS 23.1 

1. Define the term Internet.

Ans: Internet is a worldwide system of computer network through which the users at any computer can access the information from other computers. 

2. State the full form of the following– 

(a) WWW.

Ans: WWW: World Wide Web. 

(b) B2B.

Ans: B2B: Business to Business. 

(c) B2C.

Ans: B2C: Business to Customer.

(d) C2C.

Ans: C2C: Consumer to Consumer. 

INTEXT QUESTIONS 23.2 

1. India-B Commerce means________________.

Ans: Intra-B Commerce refers to interaction and dealings among various departments and persons within the firm with the help of computer and interconnected telecommunication networks. 

2. Identify the merits and limitations of e-business from the following statements– 

(a) It lacks personal touch in business transactions.

Ans: Limitations. 

(b) It takes less time to give order for desired goods and services. 

Ans: Merits.

(c) The customers have access to a large number of suppliers and they enjoy a wider choice. 

Ans: Merits.

(d) It helps the business houses to expand the business and earn more profit.

Ans: Merits. 

(e) The privacy of personal details and security of financial transactions are a concern for many users.

Ans: Limitations.

INTEXT QUESTIONS 23.3 

1. Mention the various ways of making payment in on-line transactions. 

Ans: (a) Credit card. 

(b) Debit card. 

(c) Store’s value card. 

(d) Cheque. 

2. Arrange the following stages of on-line transactions in proper sequence. 

(a) Order.

(b) Delivery.

(c) Payment.

(d) Search.

(e) After sales services.

Ans: (d) Search.

(a) Order.

(c) Payment.

(b) Delivery.

(e) After sales services.

INTEXT QUESTIONS 23.4 

1. Mention one benefit of ATM for the customers of the bank. 

Ans: Withdrawals and deposits of money.

2. Identify the following in e-banking transactions:

(a) A card that allows the holder to spend money without having any balance in his/her deposit account.

Ans: Credit card. 

(b) A machine using which we can withdraw money from our deposit accounts at our convenience.

Ans: ATM. 

(c) A system that allows the account holder to avail the banking facility over telephone.

Ans: Telebanking. 

(d) A convenient way of accessing the account anytime, anywhere and any number of times.

Ans: Internet banking.

INTEXT QUESTIONS 23.5 

1. What is meant by e-Post?

Ans: E-post is a service offered by post office through which printed or hand written messages are transmitted as e-mail on internet. 

2. Identify the linkage of the following terms in different e-Commerce applications. 

(a) Demat Account.

Ans: E-Trading at stock exchanges.

(b) Unified Message Service.

Ans: Computerisation of mail transmission and Processing. 

(c) Getting e-mail facility without direct access to Internet.

Ans: E-Post.  

(d) On-line booking of air ticket.

Ans: E-Ticketing. 

INTEXT QUESTIONS 23.6 

1. Identify the merits and limitations of Outsourcing of Services. 

(a) It facilitates inter-organisational knowledge sharing and collaborative learning. 

Ans: Merits.

(b) It reduces confidentiality of information. 

Ans: Limitations.

(c) It helps in concentrating on the core competency of the organisation.

Ans: Merits. 

(d) The management finds it difficult to handle the outside staff.

Ans: Limitations. 

(e) It provides expert and specialised service at competitive prices.

Ans: Merits. 

2. Tick the right choice: 

(i) Name the act of protecting information by transforming into an unreadable format. 

(a) VIRUS.

(b) Hacking.

(c) Cryptography.

(d) None of the above.

Ans: (c) Cryptography.  

(ii) In online buying the buyer drops the items selected in a __________. 

(a) Shopping cart.

(b) Shopping box. 

(c) Net card. 

(d) None of the above.

Ans: (a) Shopping cart. 

(iii) Plastic Card is the popular name for:

(a) Debit/Credit card. 

(b) Cheque. 

(c) Digital Cash. 

(d) None of the above.

Ans: (a) Debit/Credit card. 

Very Short Answer Questions: 

1. Define the term ‘e-commerce’. 

Ans: E-Commerce refers to the process of conducting business with the help of electronic devices using the computer and interconnected telecommunication network. Here, offer for sale and its acceptance are made electronically through Internet. It does not require physical interaction between the parties concerned. It is also known as ‘on-line trading’, ‘on-line shopping’ and ‘shopping.

2. State any two precautions one should take while making online transactions. 

Ans: The following steps are usually taken to ensure security in on-line transactions. 

(a) Passwords: In on-line shopping, one has to register with the on-line vendor to have an account with him. This provides for a password to avoid login by an unauthorised person. 

(b) Authentication: Sender of the message must be identified precisely using the off-line validation, if necessary. This avoids any possibility of fraud or misuse of the password.

3. Mention any two advantages of outsourcing of services. 

Ans: (a) It provides an opportunity to the organisation to concentrate on areas in which it has core competency or strength. It keeps the organisation free from repetitive and mundane functions. 

(b) It helps better utilisation of its resources as the management can focus its attention on selected activities and attain higher efficiency. 

4. What is meant by ‘Internet banking’?

Ans: This is another way a customer can have access to his account and give instructions. It makes the task of the customer easy as he can access his account anywhere, any time and any number of times. The customer simply uses a password number and gets the details of transactions sitting at home.

5. Give the meaning of ‘B2C e-commerce’. 

Ans: B2C business-to-consumer e commerce, also called retail ecommerce, is a business model that involves sales between online businesses and consumers. It enables a business firm to be in touch with its customers round the clock . It involves a wide range of marketing activities including promotion, seeking orders, intimating supply and so on.  

6. Name the electronic currency that exists in cyberspace. 

Ans: Digital Cash it is a form of electronic currency that exists in cyberspace. In favour of the customer the bank issues digital cash for the amount he paid. Bank will supply a special software that will allow the customer to draw digital cash from his account. Digital cash is used for purchases over the web. 

1. State any four uses of the Internet in our daily life. 

Ans: Four uses of the Internet in our daily life are: 

(i) Email.

(ii) Sharing of files.

(iii) Video conferencing.

(iv) Social networking. 

2. Distinguish between ‘e-Business’ and ‘e-Commerce’. 

Ans: 

3. Mention any four limitations of ‘e-Commerce’. 

Ans: A few limitations of e-Business/e-Commerce are: 

(a) It lacks personal touch with customers, which makes it unsuitable for items such as clothes, jewellery, etc. 

(b) The web can provide a good picture, a detailed description of the product, but the customer cannot actually see, feel or try on the goods he/she is buying. 

(c) The transaction can be finalised quickly, but physical delivery of goods often takes long time and be delayed. This leads to a lot of inconvenience for the customers.

(d) Return of faulty goods bought on-line may often be more problematic and a time consuming exercise.  

4. Distinguish between ‘Debit Card’ and ‘Credit Card’. 

Ans:

5. Explain the usefulness of ‘e-Post facility for the general public. 

Ans: To send and receive any information through e-mail, we need to have a computer with Internet connectivity and the e-mail account of the sender and receiver. However, this technology has not yet reached the rural and other remote areas of our country. To bridge this gap and extend the benefit of the e-mail facility to the people of rural India, the Department of Post has introduced e-Post facility. It enables people to send and receive e-mail at the post offices. 

6. State any two requirements for successful implementation of e-business. 

Ans: Following resources are required for successful e-business implementation: 

(i) A Website: A business must develop a website to effectively communicate with its customers. Detailed information of the enterprise should be provided on the website. Necessary pictures should also be posted on the website. 

(ii) Technically Qualified Workforce: E-business can be successful only with a well trained workforce. The workers should be capable of easily handling the new trends in computers. Sales Department staff should be trained to handle sales inquiries, processing orders and ensuring prompt delivery.

7. What is meant by Knowledge Process Outsourcing? 

Ans: KPO means outsourcing services that require expertise of a higher order. i.e. high end Knowledge Work is done by an outside organisation. KPO is mainly done to improve the efficiency and quality and to reduce costs of doing business. KPO requires professionals with the right skills, attitude and experience.

1. Explain the merits of ‘e-Commerce’. 

Ans: The merits of e-Commerce/e-Business can be summarised as follows: 

(a) Wider Accessibility: With the help of a well-developed computerised networking system, the business units can operate at the national as well as the global level. The buyers and sellers from any part of the world can interact with each other. This helps in gaining exposure to new markets. 

(b) Improved Customers Service: E-Commerce enables a company to be open for business whenever a customer needs it. Up-to-date information about products can be offered on the web, making it easier and convenient for customers to select the best product. It also enables suppliers of goods and services to offer a wide range of services to the customers, before as well as after sale, and respond to customers’ queries without any delay. 

(c) Shortened Transaction Time: An e-business transaction takes much less time as compared to the normal process of buying and selling because the producers are able to cut short the distribution channels and establish direct contact with the consumers. It also enables a company to introduce a new product into the market, gain customers’ reaction quickly, implement the necessary changes without incurring heavy cost and loss of time. 

(d) Cost Saving and Low Prices: There is a substantial cost saving in business transactions through e-Commerce as there is hardly any display of goods involved and need for large stocks in godowns (warehouse). The number of employees required is also limited. For example, as the orders are directly put into the system there is no need for any sales persons or order entry clerk. This helps in substantial savings in operational costs and offering products at lower prices to customers. 

(e) Enlarge Business and Profits: With e-Commerce, the companies are able to approach a larger number and variety of customers and gain exposure to new markets. This enables them to enlarge their business volume and earn more profits. 

(f) Convenience to Customers: The customers also stand to gain by e-Commerce in various ways. They have access to a large number of suppliers, enjoy a wider choice, and acquire quality products and services at competitive prices. They also receive prompt and efficient service and gain information about new products easily. 

(g) Personalization and Product Recommendation: E-Commerce site can track visitors, browse search and purchase history. They also add other customer’s recommendations and reviews which helps us to make a wise decision while buying online. 

2. Describe the transaction process of ‘e-Commerce’. 

Ans: The transaction process of online or e – commerce are:

(a) Search: For making a purchase, the prospective customer has to find an appropriate vendor by using various websites, either directly or through a search engine. 

(b) Order: Once the vendor has been found and goods are identified, the customer makes contact and negotiates the terms. When satisfied, the customer proceeds to the checkout that involves filling up a registration form to have an account with a password. Thereafter, he can place the order for the items put by him in his virtual shopping cart, an on-line record of what has been picked up while browsing the on-line store. 

(c) Payment: The normal way for paying on-line purchases is by the credit card. The customer enters the credit card number, expiry date and billing address on the order form, and the vendor can verify the details. Debit cards, or store’s value cards can also be used for the purpose. Alternatively, payments can be made by cheques sent by post. 

(d) Delivery: Once the payment is made or is assured, the vendor arranges for the delivery of goods as per instructions of the buyer. 

(e) After-Sales Service: In any transaction, there can be problems like damaged or faulty goods. For items such as machinery or consumer durables, there can be a provision of warranty or maintenance. The e-Vendors have to make the necessary arrangements for attending to such complaints and services. 

3. Explain any four new trends of banking services under the e-Banking mode. 

Ans: Having an account in one place in India, one can transact in any part of the country. 

Some of the new trends in banking sector are as follows: 

(a) Telebanking: A customer is given a password number (known as T-PIN i.e., Telephonic personal identification number) through which he/she can have access to his/her account over telephone and give instruction regarding withdrawal, issue of demand draft etc. The customer can also access his account and give instructions by using the mobile phone. Similarly, the bank can also keep on informing the customer regarding the various schemes, opportunities, last dates, etc. and attend to balance enquiries by the customers. 

(b) Internet Banking: This is another way a customer can have access to his account and give instructions. It makes the task of the customer easy as he can access his account anywhere, any time and any number of times. The customer simply uses a password number and gets the details of transactions sitting at home. 

(c) ATM: ATM, the acronym for Automated Teller Machine, is increasingly becoming popular in banking industry. ATM is a computerised machine used for most of the routine jobs of a bank. It is operated by a magnetic plastic card popularly known as ATM card. By inserting the ATM card in the machine and entering the PIN (Personal Identification Number) the customer can use it for withdrawals and deposits of money. The customer can also get the information about the balance available in his/her account, get the mini-statement of last 5/ 10 transactions from the ATM. Earlier the customers only had the option to access the ATM of the bank in which they had an account. But now-a-days some banks have tied-up with other banks for use of their ATM by the customers. So customers can use the ATM facility even of a bank they do not have an account in, but with whom their bank has a tie-up. 

(d) Debit Card: A debit card is an electronic card that can be used conveniently while making payments. This card is issued to the customers of the bank having current or savings account. The holder of this card can use this card at several outlets for purchase of goods and services. This card allows the holder to spend up to the balance available in his/her bank account. It can also be used at ATMs just like ATM cards. 

4. What is meant by outsourcing of services? Explain its features. 

Ans: Another important trend in business, of late, has been ‘outsourcing’ of some of its activities i.e., use of outside sources to perform activities traditionally handled by internal staff and resources. For example, most companies have so far had their own staff for cleaning and security activities in their organisations. But, of late many companies have started entrusting these tasks to outside agencies on contractual basis. In fact, outsourcing is a management strategy by which an organisation contracts out its major non-core functions to specialised service providers with a view to benefit from their expertise, efficiency and cost effectiveness, and allow managers to concentrate on their core activities.

The basic features of outsourcing of services are: 

(a) It involves contracting out an activity to an outside specialised agency which takes complete responsibility to handle it effectively using its own manpower. 

(b) Normally outsourcing is done in case of non-core activities such as housekeeping, security, etc. But, of late, it has been extended even to some of the core activities. For example, a school may engage a Computer Training Institute to handle computer education to its students or a bank may outsource its cheque processing. 

(c) There are two main forms of outsourcing the business processes:

(i) outsourcing to a third party. and

(ii) outsourcing to its own subsidiary company specially formed to handle a specific activity. 

5. State the meaning of ‘e-Banking’. Explain any two modes of e-Banking.

Ans: E-banking, also known as electronic banking, revolutionises traditional banking by integrating technology into financial services. This digital evolution allows customers to conveniently use banking services through the internet using net banking or mobile apps. Electronic banking allows customers of most banks to do their banking at any hour of the day, regardless of the bank’s operating hours. If customers choose to do such things as transfer funds or pay bills, they can usually do so from anywhere Internet access is available.

The two modes of e-Banking are:

(i) Internet banking: Internet banking, also known as online banking or e-banking Net Banking is a facility offered by banks and financial institutions that allow customers to use banking services over the internet. It Check balances on accounts and view records of your transactions.Pay bills automatically each month with easy-to-set-up auto payment.

(ii) Mobile banking: Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage activity to a client’s cell phone or as complex as a client paying bills or sending money abroad.Mobile banking is usually available on a 24-hour basis. Some financial institutions have restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted. 

6. Distinguish between BPO and KPO.

Ans: BPO: The Information Technology (IT) is one area in which this approach is growing fast, and in recent years, outsourcing the operation of IT systems has been supplemented by a move to outsourcing the whole business processes such as payroll processing, cheque processing, etc. This is known as BPO (Business Process Outsourcing). It may be noted that Indian IT-BPO sector, both in domestic business and exports, has registered a growth of 28% in 2006-07 and revenues have exceeded $ 48 billion, nearly 10 fold increase over the aggregate revenue in 1998. 

KPO: KPO means outsourcing services that require expertise of a higher order. i.e. high end Knowledge Work is done by an outside organisation. KPO is mainly done to improve the efficiency and quality and to reduce costs of doing business. KPO requires professionals with right skills, attitude and experience. 

7. How can security of e-business transactions be ensured? 

Ans: There are numerous threats to the security of e-Commerce from the customer’s side as well as the vendor’s side. The following steps are usually taken to ensure security in on-line transactions. 

(a) Passwords: In on-line shopping, one has to register with the on-line vendor to have an account with him. This provides for a password to avoid login by an unauthorised person. 

(b) Authentication: Sender of the message must be identified precisely using the off-line validation, if necessary. This avoids any possibility of fraud or misuse of the password. 

(c) Encryption: It refers to the conversion of data into a code so that it cannot be read by other users. The data is converted into the code by the sender and then decoded by the receiver. For this purpose, they use an encryption algorithm and binary numbers. The other alternative is the private (secret) key system. 

(d) Digital Signatures: A digital signature may be used to authenticate the sender of the message and check the integrity of the message so that no alteration takes place in transit. In terms of transmission, authentication and integrity, the digital signature is considered very secure provided it is created in a manner or by using a means under the exclusive control of the person using it. 

(e) Trusted Third Parties: Another way to ensure security is to transmit a copy of the transaction to a third party trusted by both sides and where the record of the transaction could be used to settle any dispute.