Profile
Settings
Refer your friends
Sign out
E-Commerce: An Introduction
E-commerce or electronic commerce is a business model that allows an individual to sell and purchase goods and services using the internet. It is known that e-commerce is operated in four major segments of the market (Business to business, consumer to consumer, business to consumer, and consumer to business) and can be conducted using computers, smartphones, tablets, and other smart devices. In today’s digital world, nearly every product and service is available to consumers through e-commerce transactions. E-commerce involves more than one party when it comes to exchanging data or currency for further processing of a transaction. It is a part of the greater industry called electronic business or e-business which consists of all processes which are required to run an enterprise.
MCQs on E-Commerce
The candidates need to solve maximum MCQs for electronic commerce or e-commerce for better preparation for the GATE exam. Here mentioned MCQs will help you gauge the pattern of electronic commerce MCQ questions for your competitive exam.
- Which dimension of e-commerce enables commerce beyond the boundaries of the country?
- Richness
- Interactivity
- Global Reach
- Ubiquity
Answer with explanation: The correct answer is option c. The dimension of e-commerce that enables commerce beyond the boundaries of the country is known as global reach. It is defined as a business initiative to elevate the access between a company and customers through the internet.
- ____ is not a major type of electronic commerce.
- Consumer to Business
- Business to Consumer
- Business to Business
- Consumer to Consumer
Answer with explanation: The correct answer is option a. Consumer to Business is not a major type of electronic commerce. It is defined as a model when products and services are offered by customers to the businesses.
- Which is not one of the three phases of electronic commerce?
- a) Reinvention
- b) Preservation
- c) Consolidation
- d) Innovation
Answer with explanation: The correct answer is option b. Preservation is not one of the three phases of electronic commerce. It implies the act of keeping something or preventing it from being damaged.
- Which of the following describes the definition of electronic commerce?
- a) Doing business
- b) Sale and purchase of goods
- c) Doing business electronically
- d) All of the above mentioned
Answer with explanation: The correct answer is option c. Electronic commerce is defined as selling and purchasing goods and services using the internet.
- Which e-commerce model involves the sale of goods or services from businesses to the general public?
- a) Business to Government
- b) Business to Consumer
- c) Business to Business
- d) Consumer to Business
Answer with explanation: The correct answer is option b. Business to Consumer (B2C) is defined as the e-commerce model that involves the sale of goods or services from businesses to the general public.
- Which e-commerce transaction provides the benefits of eliminating the requirement of a middleman?
- a) Business to Business
- b) Business to Government
- c) Consumer to Business
- d) Business to Consumer
Answer with explanation: The correct answer is option d. Business to Consumer (B2C) is an e-commerce transaction that provides the benefits of eliminating the requirement of a middleman because both goods and services are directly offered by businesses to the consumers using the internet.
- The idealistic market envisioned at the outset of electronic commerce’s development is referred to as ____.
- a) Bertrand market
- b) Baxter market
- c) Bailey market
- d) Bergman market
Answer with explanation: The correct answer is option a. The idealistic market envisioned at the outset of electronic commerce’s development is referred to as the Bertrand market.
- ____ is an e-commerce model which focuses on consumers dealing with one another.
- a) Business to Business
- b) Consumer to Consumer
- c) Consumer to Business
- d) Business to Consumer
Answer with explanation: The correct answer is option b. Consumer to Consumer (C2C) is an e-commerce model which focuses on consumers dealing with one another in this model goods and services are sold and purchased by consumers among each other.
- Which of the following was the primary source of financing during the early years of electronic commerce?
- a) Venture capital funds
- b) Bank loans
- c) Initial public offerings
- d) large retail firms
Answer with explanation: The correct answer is option a. Venture capital funds were primarily used for financing during the early years of e-commerce. Venture capital is defined as the money invested in small businesses.
- Which of the following is/are considered examples of the Consumer to consumer (C2C) model?
- a) Amazon.com
- b) e-bay
- c) Rentalic.com
- d) All of the above
Answer with explanation: The correct answer is option is d. Amazon.com, Rentalic.com, and e-bay, all three are considered the examples of Consumer to consumer (C2C) model.
- Which of the following technology is not used to collect the information about you?
- a) Anonymizers
- b) Spyware
- c) Gmail
- d) Cookies
Answer with explanation: The correct answer is option a. Anonymizer is the technology that is not used to collect information about you. It is a tool that attempts to make activity untraceable on the Internet.
- Which of the following is the set of planned activities that are designed to result in a profit in the marketplace?
- a) Profit model
- b) Business model
- c) Business plan
- d) Revenue model
Answer with explanation: The correct answer is option is b. The business model is referred to as the set of planned activities that are designed to result in a profit in the marketplace.
- Which of the following is not a key element of the business model.
- a) Competitive advantage
- b) Market strategy
- c) Universal standards
- d) Value Proposition
Answer with explanation: The correct answer is option c. Universal standards are not a key element of the business model.
- In which year WWW (World Wide Web) was introduced?
- a) 1996
- b) 1994
- c) 1990
- d) 1991
Answer with explanation: The correct answer is option is b. it is in the year 1994 when WWW (World Wide Web) was introduced.
- Which of the following is an early form of e-commerce?
- a) EDI
- b) SCM
- c) Both of these
- d) None of the above
Answer with explanation: The correct answer is option a. EDI (Electronic Data Interchange) is known to be an early form of electronic commerce.
- The reason why digital products are best suited for Business Consumer e-commerce is that they:
- a) Can be mass-customized and personalized
- b) Are commodities like products
- c) Can be delivered at the time of purchase
- d) All of the above
Answer with explanation: The correct answer is option d. The reason why digital products are best suited for Business to Consumer e-commerce is that they are commodities like products, can be mass-customized and personalized, and also, can be delivered at the time of purchase.
- ____ is an example of an Internet portal.
- a) Yahoo
- b) e-bay
- c) Amazon
- d) Facebook
Answer with explanation: The correct answer is option a. Yahoo is an example of an Internet portal that incorporates a search engine and a directory of WWW sites organized in hierarchical order.
- Which of the following is categorised as a major Business-to-Consumer business model?
- a) Service provider
- b) Transaction broker
- c) Industry consortium
- d) Content provider
Answer with explanation: The correct answer is option c. Industry consortium is a major business-to-consumer (B2C) business model. It is a group involving representatives from numerous different companies.
- Which of the following business model consists of an independently owned vertical digital marketplace for direct inputs?
- a) Private industrial network
- b) E-distributor
- c) E-procurement
- d) E-exchange
Answer with explanation: The correct answer is option d. E-exchange is a business model consisting of an independently owned vertical digital marketplace that deals with direct inputs.
- ____ is referred to as the percentage of customers, by whom a Web site is visited and something is purchased by them.
- a) Conversion rate
- b) Spam
- c) affiliate programs
- d) Click-through
Answer with explanation: The correct answer is option a. Conversion rate is referred to as the percentage of customers, by whom a Web site is visited and something is purchased by them.
- ____ is not a horizontal portal.
- a) Yahoo
- b) Sailnet
- c) MSN/Windows Live
- d) AOL
Answer with explanation: The correct answer is option b. Sailnet is not a horizontal portal.
- A strategy that is designed by businesses to compete in all markets around the world is referred to as ____ strategy.
- a) cost
- b) differentiated
- c) focus
- d) scope
Answer with explanation: The correct answer is option d. A strategy that is designed by businesses to compete in all markets around the world is referred to as a scope strategy.
