answer key for the questions

1. SAVEETHA INSTITUTE OF MEDICAL AND TECHNICAL SCIENCES
SAVEETHA COLLEGE OF LIBERAL ARTS AND SCIENCES
DEPARTMENT OF COMMERCE
ANSWER KEY
Sub.Code: CGA1211 Sub. Name: E - Commerce
Branch: B.Com Year: II Quarter: VI
Date: 30/12/2023 Faculty Dr. V. Ramidha
1. What are the merits of E-commerce?
 Global reach
 Cost-effectiveness
 Convenience for customers and businesses
 24/7 availability
2. What are the goals in e commerce?
 Increase sales and revenue
 Enhance customer experience
 Expand market reach
 Improve operational efficiency
3. What are the dynamics of E-business?
 Rapid technological changes
 Market competition
 Customer expectations and preferences
 Regulatory and legal considerations
4. What are the merits of website design
 Improved user experience
 Enhanced brand image
 Increased accessibility
 Better conversion rates

2. 5. What is extranet? Give example
An extranet is a private network that allows authorized users to access specific resources or information from an
organization's internal network. Example: A company providing its suppliers with access to inventory and order
processing systems.
6. What is middleware?
Middleware is software that acts as a bridge, enabling communication and data management between different
applications or systems.
7. What is e-payment?
E-payment refers to electronic payment methods for goods or services conducted over the internet.
8. What is digital wallet?
A digital wallet is a software-based system that securely stores users' payment information and passwords for
online transactions.
9. What is cyber security?
Cybersecurity involves practices, technologies, and processes designed to protect computer systems, networks,
and data from theft, damage, or unauthorized access
10. What is penalty?
A penalty is a punitive measure or consequence imposed for violating rules, laws, or agreements. In various
contexts, penalties may include fines, restrictions, or other disciplinary actions.
11. Explain E-business in detail?
F-business refers to the conduct of business activities, including buying and selling of goods and services,
through electronic means such as the internet. It encompasses various aspects like online transactions, electronic
data interchange (EDI), automated data collection systems, and other digital technologies to streamline and
enhance business processes. E-business involves activities like online marketing, electronic communication, and
digital collaboration to facilitate seamless interactions between businesses, customers, and other stakeholders.
12. Write short notes on developing online Business Design?
Developing an online business design involves creating a comprehensive plan for establishing and operating a
business on the internet. This includes defining the business model, target audience, products or services offered,
user experience, and marketing strategies. The design should focus on creating a user-friendly website or
platform, incorporating e-commerce functionality, and implementing effective online marketing techniques to
attract and retain customers. It also involves considerations for cybersecurity, data protection, and scalability to
ensure the sustainable growth of the online business.

3. 13. What are the types of e-payment? Expl in with example?
There are several types of e-payment methods, including credit/debit cards, digital wallets, bank transfers, and
mobile payments. For example, credit/debit card payments involve using card details for online transactions,
while digital wallets like PayPal allow users to store payment information securely. Bank transfers involve direct
fund transfers between bank accounts, and mobile payments, such as Apple Pay or Google Pay, enable users to
make transactions using their mobile devices. Each type of e-payment method offers convenience and security,
catering to different user preferences and needs.
14. Explain the role of service provider in E-commerce?
In e-commerce, a service provider plays a crucial role by offering essential services that facilitate online
transactions and business operations. Service providers may include payment gateways, hosting providers, and
logistics companies. Payment gateways, like Stripe or PayPal, ensure secure processing of online payments.
Hosting providers offer server space and infrastructure for hosting e-commerce websites. Logistics companies
handle the storage, packaging, and delivery of products. The role of service providers is integral to the smooth
functioning of e-commerce operations, ensuring efficiency, security, and a positive user experience for both
businesses and consumers.
15. Explain Business Models with examples?
A business model is the framework through which an organization creates, delivers, and captures value. There
are various business models, and each has its unique approach. Here are a few examples:
a. Subscription-Based Model (e.g., Netflix):
Customers pay a recurring fee for access to a product or service.
Example: Netflix charges a monthly subscription fee for streaming movies and TV shows.
b. Freemium Model (e.g., Spotify):
Basic services are offered for free, while advanced features require payment.
Example: Spotify allows users to listen to music for free with ads, but offers a premium subscription for an ad-
free experience.
c. E-commerce Model (e.g., Amazon):
Products or services are sold online, and transactions are conducted electronically.
Example: Amazon operates an online marketplace where users can buy a wide range of products.
d. On-Demand Model (e.g., Uber):
Services are provided immediately based on customer demand.
Example: Uber connects riders with drivers on-demand through a mobile app.
e. Franchise Model (e.g., McDonald's):
Business owners (franchisees) pay for the right to operate under an established brand.
Example: McDonald's franchises allow individuals to operate their own McDonald's restaurant.

4. 16. Explain the Components of IT technology?
Information Technology (IT) encompasses various components that work together to manage and process
information. Key components include:
a. Hardware:
Physical devices such as computers, servers, and networking equipment.
b. Software:
Programs and applications that enable specific tasks, from operating systems to productivity software.
c. Networks:
Infrastructure that allows communication and data transfer between devices.
d. Databases:
Storage systems for organizing and retrieving data efficiently.
e. Cloud Computing:
Accessing and storing data and applications over the internet, reducing the need for physical infrastructure.
f. Cybersecurity:
Measures and tools to protect IT systems from unauthorized access, attacks, and data breaches.
g. Human Resources:
The people who design, develop, maintain, and use IT systems.
17. Explain the E-Business Applications and its advantages?
E-business applications leverage the internet to conduct and streamline business processes. Examples and
advantages include:
a. E-commerce:
Buying and selling goods and services online.
Advantages: Expanded market reach, reduced operational costs.
b. Online Banking:
Conducting financial transactions and managing accounts via the internet.
Advantages: Convenient, 24/7 accessibility.
c. Supply Chain Management:
Coordinating and optimizing the flow of goods and information among various stakeholders.
Advantages: Improved efficiency, better inventory control.
d. Customer Relationship Management (CRM):
Managing interactions with customers throughout the sales lifecycle.
Advantages: Enhanced customer satisfaction, targeted marketing.
e. E-procurement:
Streamlining the procurement process by conducting transactions online.
Advantages: Cost savings, faster procurement cycles.

5. 18. Explain the various Online Payment Methods with examples?
Online payment methods facilitate electronic transactions over the internet. Examples include:
a. Credit/Debit Cards:
Users enter card details for transactions.
Example: Visa, MasterCard.
b. Digital Wallets:
Store payment information for quick transactions.
Example: PayPal, Apple Pay.
c. Bank Transfers:
Directly transferring funds from one bank account to another.
Example: ACH transfers.
d. Cryptocurrencies:
Digital currencies secured by cryptography.
Example: Bitcoin, Ethereum.
e. Mobile Payments:
Payments using mobile devices.
Example: Google Pay, Samsung Pay.
19. Explain the various types of cyber security with examples?
Cybersecurity involves protecting computer systems, networks, and data from theft, damage, or unauthorized
access. Types of cybersecurity include:
a. Network Security:
Protecting networks from unauthorized access or attacks.
Example: Firewalls, VPNs.
b. Endpoint Security:
Securing individual devices (endpoints) from cyber threats.
Example: Antivirus software.
c. Cloud Security:
Ensuring the security of data stored in the cloud.
Example: Encryption, access controls.
d. Application Security:
Protecting software applications from threats.
Example: Code reviews, penetration testing.
e. Information Security:
Safeguarding sensitive information from unauthorized access.
Example: Data encryption, access controls.
These examples showcase the diverse and interconnected aspects of business, IT, e-business, online payments,
and cyber security. Each plays a crucial role in the modern digital landscape.