Plus One Business Studies Chapter Wise Previous Questions Chapter 5 Emerging Modes of Business

Kerala Plus One Business Studies Chapter Wise Previous Questions and Answers Chapter 5 Emerging Modes of Business

Question 1.
Asok, a businessman, wanted to know why Business Process Outsourcing has emerged as a business activity all over the world. How will you convince him by stating the advantages of Business Process Outsourcing (BPO)? (June – 2008)
Answer:
The advantages of BPO are:-

• Companies can concentrate on important matters.
• It helps to avoid labour problem
• Companies will get expert service because outsourcing agencies are specialists in their field.
• It helps to obtain better quality products or services.
• It helps the companies to reduce cost to a greater extent.

Question 2.
Commercial banks have been classified into three types onthe basis of their ownership. (June – 2008)
i) Find out these categories.
ii) State any four innovative services rendered by commercial banks.
Answer:
a) On the basis of ownership, commercial banks have been classified as

1. Public sector banks
2. Private sector banks
3. Foreign banks

b) The innovative services rendered by commercial banks are:-

1. ATM cards: Customers can withdraw cash at any time from ATM by using ATM cards. This is a plastic card bearing a number for each customer. The card is to be inserted into the machine and enter the personal identification number, this opens the account and we can deposit cash in to it or withdraw from it. The advantage is that it gives accessibility 24 hours a day.

2. Debit cards: The holder of a debit card can buy goods from approved shops with out paying cash against the balance in his bank account. Every purchase reduces bank balance. Debit card is issued to bank account holder alone and against the amount deposited with the bank.

3. Credit cards: A credit card is an instrument issued by a bank in the name of the customer providing credit up to a specified amount. The
person holding a valid credit card uses it for purchasing goods from approved shops with out paying cash. The payment is made by the bank to the sellers. The buyers have to pay forthe purchase with in the credit period.

4. Net banking: In order to provide convenience to the customers for banking anytime, anywhere in the world, net banking is used. Customers are provided secured log in id and password through which they can access their account and make transactions like account balance enquiry, cheque book request, fund transfer etc.

Question 3.
A section of the society used to blame Business Process Outsourcing (BPO). But BPO is acceptable to many firms to get their tasks accomplished. Suppose you are a businessman, how will you defend the opposers by stating any two advantages of BPO? (August – 2009)
Answer:
Resources Required for Successful e-Business Implementation:
The resources required for the e-Business are :

• Computer system
• Internet connection and technically qualified work force
• A well-developed web page
• Effective telecommunication system
• A good system for making payment using credit instruments.

Outsourcing or Business Process Outsourcing (BPO)

Outsourcing is a management strategy by which an organisation contracts out its major non-core functions to specialized service providers with a view to benefit from their expertise, efficiency and cost effectiveness, and allow managers to concentrate on their core activities.

Merits of outsourcing

• It provides an opportunity to the organisation to concentrate on areas in which it has core competency or strength.
• It helps better utilisation of its resources as the management can focus its attention on selected activities and attain higher efficiency.
• It helps the organisation to get an expert and specialised service at competitive prices. It helps in improved service and reduction in costs.
• It facilitates inter-organisational knowledge sharing and collaborative learning.
• It enables expansion of business as resources saved from outsourcing can be used for expanding the production capacity and diversified products.

Limitations of outsourcing

• It reduces confidentiality as outsourcing involves sharing a lot of information with others.
• It may be opposed by labour unions who feel threatened by possible reduction in their employment.
• In the name of cost cutting, unlawful activities such as child labour, wage discrimination maybe encouraged in other countries.
• The organisation hiring others may face the problem of loss of managerial control because it is more difficult to manage outside service providers than managing one’s own employees
• It causes unemployment in the home country.

Question 4.
Jameela a housewife residing in Kerala, has opened a Savings Bank account in a bank situated far away from her house, but she has not applied for ATM cards. Afterwards the manager of the bank explained to her the advantages of ATMs. Mention any four advantages that the manager might have told her. (August – 2009)
Answer:
The advantages of ATM are:-

• It is conveniently located in important towns and cities.
• At any time we can deposit and withdraw money
• It is self operating and customers can save time.
• Many banks provides ATM service without charging any charges.

Question 5.
‘Plastic money facilitates people to shop for goods in cash without holding cash.’ Explain the different kinds of plastic money in the above statement. (March – 2010)
Answer:
different kinds of plastic money

1. ATM cards
2. Debit cards
3. Credit cards

Question 6.
The problem of unemployment in Kerala can be reduced by promoting ‘BPO’ services. Do you agree? Substantiate your answer. (March – 2012)
Answer:
Yes.
Business enterprises concentrate on their core activities and entrust other services to agencies outside who have specialized in that service. This is called BPO.
BPO helps to generate more employment opportunities in developing countries like India. Companies can enjoy benefits such as reduced labor costs, high efficiency and increased flexibility through outsourcing.

Question 7.
……………… refers to an illegal entry into the website of an enterprise and thereby damaging the data input there. (March – 2013)
a) Brand hijacking
b) Factoring
c) Hacking
d) Viruses
Answer:
Hacking

Question 8.
Arjun conduct all business activities through internet. Identify the type of business in which Aijun is engaged. (October – 2013)
Answer:
Sng E-commerce

Question 9.
………… are programs designed to corrupt data in a system. (March – 2014)
Answer:
Virus.

Question 10.
Name any four resources required fore-commerce. (March – 2014)
Answer:
1) Computer system with telecom network
2) Internet connection and technically qualified workforce
3) A well developed web page
4) A good system for making payment using credit instruments

Question 11.
Gaurav Singh, a small-scale businessman entrusts the maintenance of his accounts to the firm, “Accounting Solutions”, a specialist in accounting of firms. Explain the concept mentioned here. (August – 2014)
Answer:
Business Processing Outsourcing (BPO). Outsourcing is a management strategy by which an organisation contracts out its major non-core functions to specialized service providers with a view to benefit from their expertise, efficiency and cost-effectiveness, and allow managers to concentrate on their core activities.

Question 12.
The online payment of telephone bills comes under the model of e-commerce. (March – 2014)
a) B2B
b) Intra B
c) B2C
d) C2C
Answer:
B2C

Question 13.
Mr. Kumar is dealer in textile business, doing his business through e-commerce. Write any three benefits of his business as compared to the traditional business. (March – 2014)
Answer:
1) e-business is relatively easy to start and requires lower capital.
2) Customers can buy goods at any time from any seller located in different parts of the world.
3) Business transactions can be made easily and speedily.

Question 14.
Which of the following helps to purchase goods and services without making spot payments and zero balance in the account? (March – 2014)
a) Debit card
b) Credit Card
c) Kisan Vikas Patra
d) None of these
Answer:
Credit card

Question 15.
Mr. Devadas is a dealer in the textile business doing his business through e-commerce. Write any three benefits of his business as compared to traditional business. (Say – 2015)
Answer:
1. e-business is relatively easy to start and requires lower capital.
2. Customers can buy goods at any time from any seller located in different parts of the world.
3. Business transactions can be made easily and speedily.

Question 16.
An important tool used for safeguarding against data transmission risk in online transaction is ………. (March – 2016)
Answer:
Cryptography/encryption/Cyphertext/code words.

Question 17.
Find the e-business models from the following.
a) Customers making toll free calls through call centers to enquire about the product of a company. (March – 2016)
b) CIAL Tech Ltd., uses a network of computers
for monitoring delivery of components to the suppliers.
(Hint: B2G, B2B, B2C, C2B)
Answer:
a) C2B
b) B2B

Question 18.
In order to concentrate in the production activities Magnum Mars Ltd, decided to entrust their marketing activities to outside suppliers. Identify the concept. What are its benefits? (March – 2016)
Answer:
Business Process Outsourcing (BPO)
Merits of outsourcing

• It provides an opportunity to the organisation to concentrate on areas in which it has core competency or strength.
• It helps better utilisation of its resources as the management can focus its attention on selected activities and attain higher efficiency.
• It helps the organisation to get an expert and specialised service at competitive prices. It helps in improved service and reduction in costs.
• It facilitates inter-organisational knowledge sharing and collaborative learning.
• It enables expansion of business as resources saved from outsourcing can be used for expanding the production capacity and diversified products.

Question 19.
Nowadays banking activities can be done even after or before the banking hours. Name the type of service offered by banks in the above context. What are its advantages? (March – 2016)
Answer:
E-Banking
Benefits of e-banking to customers

• e-banking provides 24 hours, 365 days a year services to the customers of the bank
• Customers can make some of the permitted transactions from office or house or while travelling via mobile telephone
• It creates a sense of financial discipline by recording each and every transaction
• Greater customer satisfaction by offering unlimited access to the bank

Benefits of e-banking to Bank

• e-banking provides a competitive advantage to the bank
•  e-banking provides an unlimited network to the bank
• Work Load on branches can be considerably reduced

Question 20.
VSAT stands for ………… (September – 2016)
a) Very Smal Aperture Telephone
b) Very Small Aperture Terminal
c) Very Small Aperture Transaction
d) Very Small Aperture Trade
Answer:
Very Small Aperture Terminal (VSAT)

Question 21.
Commercial banks have ATM counters through out India. But filling currencies in majority of machines is performed by outside agencies on behalf of banks for a commission. (September – 2016)
a) Name the business concept involved here.
b) Describe any four benefits by doing so.
Answer:
a) Business Process Outsourcing
b) Resources Required for Successful e-Business Implementation:
The resources required for the e-Business are :

• Computer system
• Internet connection and technically qualified work force
• A well developed web page
• Effective telecommunication system
• A good system for making payment using credit instruments.

Outsourcing or Business Process Outsourcing (BPO)

Outsourcing is a management strategy by which an organisation contracts out its major non-core functions to specialized service providers with a view to benefit from their expertise, efficiency and cost effectiveness, and allow managers to concentrate on their core activities.

Merits of outsourcing

• It provides an opportunity to the organisation to concentrate on areas in which it has core competency or strength.
• It helps better utilisation of its resources as the management can focus its attention on selected activities and attain higher efficiency.
• It helps the organisation to get an expert and specialised service at competitive prices. It helps in improved service and reduction in costs.
• It facilitates inter-organisational knowledge sharing and collaborative learning.
• It enables expansion of business as resources saved from outsourcing can be used for expanding the production capacity and diversified products.

Limitations of outsourcing

• It reduces confidentiality as outsourcing involves sharing a lot of information with others.
• It may be opposed by labour unions who feel threatened by possible reduction in their employment.
• In the name of cost cutting, unlawful activities such as child labour, wage discrimination maybe encouraged in other countries.
• The organisation hiring others may face the problem of loss of managerial control because it is more difficult to manage outside service providers than managing one’s own employees
• It causes unemployment in the home country.

Question 22.
Due to the advancement of technology, we are able to conduct banking transactions through electronic devices with the help of internet.
a) Identify the modem banking facility used here. (September – 2016)
b) State the merits
Answer:
a) e-banking/Internet banking
b) e-Banking (Electronic Banking)
e-banking is a service provided by many banks, that allows, a customer to conduct banking transactions, such as fund transfer, checking accounts, paying bills, requesting cheque book etc. over the internet using a personal computer, or mobile phone.

• The chief electronic services are the following: Electronic Funds Transfer (EFT)
• Automated Teller Machines (ATM)
• Point of Sales (PoS)
• Electronic Data Interchange (EDI)
• Credit Cards
• Electronic or Digital cash.

Benefits of e-banking to customers

• e-banking provides 24 hours, 365 days a year services to the customers of the bank
• Customers can make some of the permitted transactions from office or house or while travelling via mobile telephone
• It creates a sense of financial discipline by recording each and every transaction
• Greater customer satisfaction by offering unlimited access to the bank

Benefits of e-banking to Bank

• e-banking provides competitive advantage to the bank .
• e-banking provides unlimited network to the bank
• Work Load on branches can be considerably reduced

Question 23.
Mrs. Usha purchased a smartphone from LG company through internet is a …………. activity. (March – 2017)
a) B2B
b) B2G
c) B2C
d) C2C
Answer:
B2C

Question 24.
Match column A with column B.  (March – 2017)

Answer:

Question 25.
Write any three limitations of the mail-order business.  (March – 2017)
Answer:
Mail-order business is a form of retailing where the business transactions are done through post or mail. Under this system orders for goods, delivery of goods and payment is made through VPP (Value Payable Post). Under this arrangement, the goods are delivered to the customers only on making full payment for the same. There is generally no direct personal contact between the buyers and the sellers in this type of trading.
Disadvantages

• It has to spend a large amount on advertisement.
• There is no direct personal contact between the buyer and the seller.
• The buyer cannot inspect the goods personally before purchasing.
• They are not suitable for heavy and perishable goods.

Plus One Business Studies Chapter Wise Previous Questions