Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Emerging Modes of Business

Question:

Which of the following is not a benefit of e-commerce to business organisation?

Options:

Gradual decline in the cost of operations

Competitive advantage over competitors

Proper time management and support business processes

Competitive price/discounts/waive offs

Correct Answer:

Competitive price/discounts/waive offs

Explanation:

The correct answer is option 4- Competitive price/discounts/waive offs.

Competitive price/discounts/waive offs- This is a benefit for consumers or society.

e-commerce covers a firm’s interactions with its customers and suppliers over the internet. Benefits of e-Commerce are as follows-

1. Business Organisation:

  • (i) Expands the marketplace to national and international markets
  • (ii) Gradual decline in the cost of operations
  • (iii) Facilitates ‘pull’ supply chain management
  • (iv) Competitive advantage over competitors
  • (v) Proper time management and support business processes
  • (vi) Small firms co-exist with big firms (win-win).

 

2. Benefits to Consumers and Society

  • (i) Flexibility
  • (ii) Competitive price/discounts/waive offs
  • (iii) More options and choices and Customised products
  • (iv) Quick and Timely delivery (digitised products)
  • (v) Employment potential
  • (vi) Facilitate e-Auctions and e-Tenders
  • (vii) Interaction with consumers
  • (viii) Wider outreach