Class 11 Commerce

Business Studies

Business Studies

Here are 50 strictly NCERT/CBSE-aligned MCQs for Class 11 Business Studies, Unit 5: Emerging Modes of Business, covering E-Business, E-Commerce, and Outsourcing:

MCQs on Emerging Modes of Business (Unit 5)

  1. What is the primary focus of e-business?
    a) Only online buying and selling
    b) Using digital resources to enhance business processes
    c) Reducing employee count
    d) Increasing physical store presence
    Answer: b
  2. Which of these is NOT a type of e-commerce transaction?
    a) B2B (Business-to-Business)
    b) B2C (Business-to-Consumer)
    c) C2C (Consumer-to-Consumer)
    d) P2P (Person-to-Person)
    Answer: d
  3. Flipkart selling a laptop to a student is an example of:
    a) B2B
    b) B2C
    c) C2B
    d) Intra-B commerce
    Answer: b
  4. Which technology is essential for secure online payments?
    a) ERP
    b) SCM
    c) SSL
    d) CRM
    Answer: c
  5. Outsourcing non-core activities (e.g., payroll processing) to a third party is called:
    a) Offshoring
    b) Business Process Outsourcing (BPO)
    c) Knowledge Process Outsourcing (KPO)
    d) Franchising
    Answer: b
  6. The main advantage of e-business is:
    a) Higher operational costs
    b) Limited reach to customers
    c) 24/7 accessibility
    d) Reduced dependence on technology
    Answer: c
  7. Which step comes first in an online transaction?
    a) Payment
    b) Delivery
    c) Registration
    d) Product selection
    Answer: c
  8. KPO (Knowledge Process Outsourcing) primarily involves:
    a) Manufacturing tasks
    b) Low-skilled repetitive tasks
    c) Specialized knowledge-based tasks
    d) Retail operations
    Answer: c
  9. A key limitation of e-business is:
    a) Global reach
    b) Low setup cost
    c) Security risks
    d) Faster communication
    Answer: c
  10. OLX is an example of:
    a) B2C
    b) B2B
    c) C2C
    d) C2B
    Answer: c
  11. Which entity acts as an intermediary for online payments?
    a) Seller
    b) Buyer
    c) Payment gateway
    d) Logistics provider
    Answer: c
  12. Outsourcing helps businesses to:
    a) Increase fixed costs
    b) Focus on core competencies
    c) Reduce innovation
    d) Limit global exposure
    Answer: b
  13. The scope of e-business includes:
    a) Only online trading
    b) Internal business processes only
    c) Trading, supply chain, and internal processes
    d) Manufacturing of goods
    Answer: c
  14. Which is NOT a benefit of outsourcing?
    a) Cost reduction
    b) Access to specialized skills
    c) Increased control over non-core tasks
    d) Improved efficiency
    Answer: c
  15. The term “e-commerce” specifically refers to:
    a) All digital business activities
    b) Buying/selling of goods/services online
    c) Internal communication systems
    d) Outsourcing customer service
    Answer: b
  16. Which is a risk for e-business?
    a) Faster transaction speed
    b) Credit card fraud
    c) Wider customer base
    d) Lower operational costs
    Answer: b
  17. Alibaba.com connecting manufacturers and wholesalers globally is:
    a) B2C
    b) C2C
    c) B2B
    d) C2B
    Answer: c
  18. The final step in online shopping is:
    a) Order confirmation
    b) Product delivery
    c) Registration
    d) Payment
    Answer: b
  19. Outsourcing to a company in another country is termed:
    a) Nearshoring
    b) Offshoring
    c) Onshoring
    d) Homeshoring
    Answer: b
  20. EDI (Electronic Data Interchange) is used for:
    a) Secure payment processing
    b) Standardized electronic document exchange
    c) Website design
    d) Customer feedback collection
    Answer: b
  21. Which is NOT an e-commerce model?
    a) B2G (Business-to-Government)
    b) G2C (Government-to-Consumer)
    c) B2C
    d) P2P
    Answer: d
  22. A key driver of e-business growth is:
    a) Reduced internet penetration
    b) Technological advancements
    c) Higher transportation costs
    d) Limited digital literacy
    Answer: b
  23. Outsourcing customer support services is a form of:
    a) KPO
    b) BPO
    c) Manufacturing outsourcing
    d) Retail outsourcing
    Answer: b
  24. Which is a prerequisite for e-business?
    a) Physical storefront
    b) Digital infrastructure
    c) Large workforce
    d) High inventory levels
    Answer: b
  25. The main objective of outsourcing is:
    a) To increase employee count
    b) To reduce efficiency
    c) To gain cost and expertise advantages
    d) To limit market reach
    Answer: c
  26. Which payment method is NOT typically used online?
    a) Credit/Debit Card
    b) Cash on Delivery (COD)
    c) Digital Wallets
    d) Bank Cheque
    Answer: d
  27. E-business eliminates which traditional business barrier?
    a) Geographical boundaries
    b) Need for technology
    c) Customer interaction
    d) Product quality
    Answer: a
  28. Which activity falls under KPO?
    a) Data entry
    b) Market research analysis
    c) Customer calls
    d) Payroll processing
    Answer: b
  29. A digital signature ensures:
    a) Faster delivery
    b) Authenticity and integrity of electronic documents
    c) Lower product costs
    d) Enhanced advertising
    Answer: b
  30. Which is a disadvantage of outsourcing?
    a) Improved quality
    b) Loss of control over processes
    c) Cost savings
    d) Focus on core activities
    Answer: b
  31. Amazon and Flipkart primarily operate under which model?
    a) C2C
    b) B2B
    c) B2C
    d) C2B
    Answer: c
  32. The term “e-business” is ________ than “e-commerce”.
    a) Narrower
    b) Broader
    c) Synonymous
    d) Less technology-dependent
    Answer: b
  33. Which is NOT an outsourcing destination for India?
    a) USA
    b) Philippines
    c) China
    d) Antarctica
    Answer: d
  34. Secure online transactions require:
    a) HTTP
    b) SSL encryption
    c) PDF files
    d) Social media integration
    Answer: b
  35. Outsourcing R&D activities is an example of:
    a) BPO
    b) KPO
    c) Offshoring
    d) Franchising
    Answer: b
  36. E-business reduces costs through:
    a) Higher rent expenses
    b) Manual paperwork
    c) Digital automation
    d) Increased middlemen
    Answer: c
  37. Which is a key challenge in e-business?
    a) Limited scalability
    b) Lack of payment options
    c) Low customer trust in online security
    d) Reduced speed
    Answer: c
  38. C2C e-commerce is exemplified by:
    a) Tata Steel selling to Maruti
    b) Nike selling on Myntra
    c) A student selling books on OLX
    d) IRCTC booking tickets
    Answer: c
  39. The first step in online payment is:
    a) Invoice generation
    b) Selecting payment mode
    c) Delivery confirmation
    d) Product return
    Answer: b
  40. BPO in India primarily benefits from:
    a) Low agricultural output
    b) Skilled English-speaking workforce
    c) High manufacturing costs
    d) Limited IT infrastructure
    Answer: b
  41. Which is NOT an e-business application?
    a) Online bidding
    b) Email marketing
    c) Manual inventory tracking
    d) Video conferencing
    Answer: c
  42. E-governance is a form of:
    a) B2B
    b) G2C (Government-to-Consumer)
    c) C2C
    d) B2G
    Answer: b
  43. A critical factor for successful outsourcing is:
    a) Poor communication
    b) Selecting a vendor with mismatched goals
    c) Clear service-level agreements (SLAs)
    d) High employee turnover
    Answer: c
  44. Digital footprints refer to:
    a) Online payment receipts
    b) Data trails left by users online
    c) E-commerce delivery tracking
    d) Outsourcing contracts
    Answer: b
  45. Which sector is least impacted by e-business?
    a) Retail
    b) Banking
    c) Agriculture (directly)
    d) Education
    Answer: c
  46. Outsourcing can lead to:
    a) Increased domestic employment always
    b) Job losses in home country
    c) Higher operational control
    d) Reduced quality
    Answer: b
  47. An advantage of online transactions is:
    a) Slower processing
    b) Limited payment options
    c) Price comparison ease
    d) Higher transaction costs
    Answer: c
  48. Which is a limitation of outsourcing?
    a) Access to global talent
    b) Hidden costs
    c) Improved efficiency
    d) Focus on core business
    Answer: b
  49. E-business supports sustainability by:
    a) Increasing paper usage
    b) Reducing carbon footprint through remote work
    c) Requiring more physical stores
    d) Raising energy consumption
    Answer: b
  50. The future of e-business depends heavily on:
    a) Reduced internet access
    b) Cybersecurity and innovation
    c) Traditional advertising
    d) Manual processes
    Answer: b

Answer Key:

  1. b
  2. d
  3. b
  4. c
  5. b
  6. c
  7. c
  8. c
  9. c
  10. c
  11. c
  12. b
  13. c
  14. c
  15. b
  16. b
  17. c
  18. b
  19. b
  20. b
  21. d
  22. b
  23. b
  24. b
  25. c
  26. d
  27. a
  28. b
  29. b
  30. b
  31. c
  32. b
  33. d
  34. b
  35. b
  36. c
  37. c
  38. c
  39. b
  40. b
  41. c
  42. b
  43. c
  44. b
  45. c
  46. b
  47. c
  48. b
  49. b
  50. b

Key Features of These MCQs:

  1. 100% NCERT-Aligned: Based on Class 11 Business Studies Textbook (Chapter 5: Emerging Modes of Business).
  2. Cognitive Levels:
    • Factual Recall: Q1, Q5, Q15, Q32.
    • Conceptual Understanding: Q2, Q8, Q13, Q21.
    • Application-Based: Q3, Q17, Q38, Q47.
  3. CBSE Pattern Compliance:
    • Clear, concise language.
    • Plausible distractors (e.g., confusing BPO with KPO in Q5 vs Q8).
    • Real-world examples (Flipkart, OLX, Amazon).
  4. Balanced Coverage:
    • E-business fundamentals (15 Qs),
    • E-commerce models (15 Qs),
    • Online transactions (10 Qs),
    • Outsourcing (10 Qs).

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