JAIPUR NATIONAL UNIVERSITY, JAIPUR

Paper Code:MBADC401

SCHOOL OF BUSINESS & MANAGEMENT

MBA (Dual) IVSEM II WEEK MODEL TEST PAPER

E-BUSINESS

Time: 3 Hours Max. Marks: 60

Question paper consist of two sections i.e. A & B. Section A is compulsory which consists 10 Short
answer type questions of 2 marks each. Section B consist 6 questions (Question no. 2 to Question
no. 7). Question no. 7 is compulsory carrying 16 marks. Attempt 3 Questions from the balance 5
questions (Question no. 2 to Question no. 6) carrying 8 marks each. Sub parts of a question should be
done at same place by the students.

SECTION A

Q. 1 Answer the following questions (50 Words)

2x10=20

a) Define e-business.

Ans.) Electronic business (e-business) refers to the use of the Web, Internet, intranets,
extranets or some combination thereof to conduct business. E-business is similar to e-
commerce, but it goes beyond the simple buying and selling of products and services online.
E-business includes a much wider range of businesses processes, such as supply chain
management, electronic order processing and customer relationship management. E-business
processes, therefore, can help companies to operate more effectively and efficiently.

b) What is B2B model?

Ans.) B2B is the selling, buying, and trading of goods and services through an online sales
portal between businesses. Since both parties involved are business entities, the transactions
are more rational than impulsive. Furthermore, the relationship between the companies
involved long-term interests.

Trading online has several benefits such as the expansion of business, the rise in the number
of customers, and increased brand-awareness.

c) Differentiate between LAN and WAN.

Ans.) A LAN (local area network) is a group of computers and network devices connected
together, usually within the same building. Whereas, WAN connects several LANs, and may
be limited to an enterprise a corporation or an organization or accessible to the public.

d) What is URL?

Ans.) URL, otherwise known as a Universal Resource Locator, is the address of a resource on
the Internet and the protocol used to access it.

It indicates the location of a web resource like a street address indicates where a person lives
physically because of this, an URL is often referred to as: “web address”.

e) What is encryption?
Ans.) Encryption is a process that encodes a message or file so that it can only be read by
certain people. It uses an algorithm to scramble, or encrypt, data and then uses a key for the
receiving party to unscramble, or decrypt, the information.

f) What is data mining?

Ans.) Data mining is defined as a process used to extract usable data from a larger set of any
raw data. It implies analysing data patterns in large batches of data using one or more
software. Data mining has applications in multiple fields, like science and research. As an
application of data mining, businesses can learn more about their customers and develop
more effective strategies related to various business functions and in turn leverage resources
in a more optimal and insightful manner. This helps businesses be closer to their objective and
make better decisions.

g) What is cyber-crime?

Ans.) Cybercrime, is the use of a computer as an instrument to further illegal ends, such as
committing fraud, trafficking in intellectual property, stealing identities, or violating privacy.
Cybercrime, especially through the Internet, has grown in importance as the computer has
become central to commerce, entertainment, and government.

h) What are smart cards?

Ans.) A smart card is a special type of card like device which contains an integrated circuit
chip embedded on it. The IC chip can be a microprocessor with memory or just simple
memory circuit. In simple layman's words, a smart card is the card with which we can
exchange the data, store it and manipulate data.

i) What is image tag?

Ans.) One of the most basic HTML elements is the image tag, which is used to tell a browser
to display an image on a webpage, the image tag has quite a few attributes that are important
 to be aware of. For example, using these attributes we can tell the browser to put a border
around an image, align the image to the left of the page, and even hide the image if there is an
error loading it from the server.

j) What are electronic catalogues?

Ans.) An electronic catalogue is an online publication, that is to say a graphic interface

-generally an html page in which the products and services offered by a company are shown.
Digital catalogues can store great quantities of items, which can be organized and classified
into different categories for users to search in a more rapid and effective way.

There are different types of catalogues according to their functions. The simplest catalogues
show only descriptions of the products and price lists, and do not enjoy a purchase and
payment online method. Others have shopping carts, order forms and offer payment methods.
The amount of functions an online catalogue has will determine the price of its development.

SECTION – B

Q.2 What are hardware and software requirement of e-commerce activities? Explain. 8

Ans.) There are many ecommerce tools and technologies required to build an e-commerce portal and
operate a successful online business. Both software and hardware technologies must be included in
your e-business plan, such as:

Web Server

A web server is used to host an e-commerce website. All the Html, JavaScript, PHP files, databases,
media files that make up the entire website are stored on this server. The web server runs on
Windows or Linux operating system. Managing a web server is a very specific job. The website
development companies host the site on their own web server or pay a hosting company to provide
space on a secure web server.

Server Software

When a user visits any website on a web browser, the web server knows the client is requesting some
specific information. So it processes that request and serves the correct files to the client. The web
browser then displays these files to the user.

There are many types of server software available including application software, database server, file
server software, and cloud computing software. The popular web server software includes Apache and
Windows IIS. Server software can either use on a physical server or on a virtual / cloud server.

Web Tools

A web authoring tool is used to create the front end of an e-commerce website. They range from basic
HTML text editors (like Notepad++) to more complex graphic authoring tools and CMS (content
management system) with built-in frameworks and debugging tools.

Html files are created by Dreamweaver along with the CSS (cascading style sheet) which enhance the
visual appearance of the site. Another web authoring tool would be Visual Studio .net that can be used
to make the sites which have integrated databases in it. Graphic design packages are also web
authoring tools which design the skin for a user interface.

Database System

A database is an integral part of an e-commerce website. The database is used to store information
about the products and services of the website such as pricing, description, image, details, and sales.
In addition to this, the customer details are also stored in the database like what they ordered, their
payment details, shipping details, and contact information.
It is necessary to program the website to connect securely to the database so that all the orders are
processed correctly and your business runs smoothly. Technologies like PHP and MySQL are the
communication route between the website and the DBMS (database management system).

Networking

TCP (transfer control protocol) and IP (internet protocol) defines as how computers should connect
with each other through the internet and how they share information. Common TCP/IP protocols are
HTTPS, HTTP, and FTP. We use these protocols to access the website without even realizing it. FTP
(file transfer protocol) used to download files from a browser.

HTTPS (where the “S” stands for security) responsible for the secure communication between a server
and a browser like an account information or personal information.

For an e-commerce website or online store, it is considered essential to provide a secure connection.
SSL (secure sockets layer) and TLS (transport layer security) are the protocols associated with trust
and security of any e-commerce website.

Browser Compatibility

A web browser is a software application that is used to locate, receive and display content received
from the web servers. Popular web browsers include Mozilla Firefox, Google Chrome, Internet
Explorer and Safari. Web developers and Web development agencies test the website to see how it
displays on multiple browsers across multiple devices and screen sizes before launching the website.

To analyze website traffic, use tools like Google Analytics to get an idea as to what browsers people
are using and which one is the most popular.

Ports

Ports allow one device to connect with the other through a different and unique IP address. A device
can have more than one port.
Port 25 (SMTP) is usually reserved for email. It is used to transmit data from remote email servers. If
that port is blocked no emails can be sent. Some other common port numbers are 80(HTTP), 443
(HTTPS), 21 (FTP), 22 (SSH). Firewalls can often block a port to tighten the security.

Domain Names

Domain names link to a company or a brand. Successful e-commerce companies have recognizable
domain names. If you have any smaller business then it is best to select the domain name as per your
business name. This would help to rank highly in search engines.

If a business becomes successful online, it is important to protect the brand by doing multiple
registrations of domain names such as .com, .net, .uk, .org, .co

Doing this ensures that no one can steal your business by copying your business model.

Q.3 What are firewalls? Explain any three types of firewalls. 8

Ans.) A firewall is a type of cybersecurity tool that is used to filter traffic on a network. Firewalls can be
used to separate network nodes from external traffic sources, internal traffic sources, or even specific
applications. Firewalls can be software, hardware, or cloud-based, with each type of firewall having its
own unique pros and cons.

The primary goal of a firewall is to block malicious traffic requests and data packets while allowing
legitimate traffic through.

Firewall types can be divided into several different categories based on their general structure and
method of operation. Here are three types of firewalls:

Circuit-Level Gateways

As another simplistic firewall type that is meant to quickly and easily approve or deny traffic without
consuming significant computing resources, circuit-level gateways work by verifying the transmission
control protocol (TCP) handshake. This TCP handshake check is designed to make sure that the
session the packet is from is legitimate.

While extremely resource-efficient, these firewalls do not check the packet itself. So, if a packet held
malware, but had the right TCP handshake, it would pass right through. This is why circuit-level
gateways are not enough to protect your business by themselves.

Stateful Inspection Firewalls

These firewalls combine both packet inspection technology and TCP handshake verification to create
a level of protection greater than either of the previous two architectures could provide alone.
However, these firewalls do put more of a strain on computing resources as well. This may slow down
the transfer of legitimate packets compared to the other solutions.

Proxy Firewalls (Application-Level Gateways/Cloud Firewalls)

Proxy firewalls operate at the application layer to filter incoming traffic between your network and the
traffic source—hence, the name “application-level gateway.” These firewalls are delivered via a cloud-
based solution or another proxy device. Rather than letting traffic connect directly, the proxy firewall
first establishes a connection to the source of the traffic and inspects the incoming data packet. This
check is similar to the stateful inspection firewall in that it looks at both the packet and at the TCP
handshake protocol. However, proxy firewalls may also perform deep-layer packet inspections,
checking the actual contents of the information packet to verify that it contains no malware.

Once the check is complete, and the packet is approved to connect to the destination, the proxy sends
it off. This creates an extra layer of separation between the “client” (the system where the packet
originated) and the individual devices on your network obscuring them to create additional anonymity
and protection for your network.

If there’s one drawback to proxy firewalls, it’s that they can create significant slowdown because of the
extra steps in the data packet transferral process.
Q.4 What is e-payment system? Explain the advantages of e-payment system. 8

Ans.) An e-payment system is a way of making transactions or paying for goods and services through
an electronic medium, without the use of checks or cash. It’s also called an electronic payment system
or online payment system. Read on to learn more.

The electronic payment system has grown increasingly over the last decades due to the growing
spread of internet-based banking and shopping. As the world advances more with technology
development, we can see the rise of electronic payment systems and payment processing devices. As
these increase, improve, and provide ever more secure online payment transactions the percentage of
check and cash transactions will decrease.

E-payment systems are made to facilitate the acceptance of electronic payments for online
transactions. With the growing popularity of online shopping, e-payment systems became a must for
online consumers — to make shopping and banking more convenient. It comes with many benefits,
such as:

1. Reaching more clients from all over the world, which results in more sales.
2. More effective and efficient transactions, because transactions are made in seconds (with one-
click), without wasting customer’s time. It comes with speed and simplicity.
3. Convenience. Customers can pay for items on an e-commerce website at anytime and
anywhere. They just need an internet connected device. As simple as that!
4. Lower transaction cost and decreased technology costs.
5. Expenses control for customers, as they can always check their virtual account where they can
find the transaction history.
6. Today it’s easy to add payments to a website, so even a non-technical person may implement
it in minutes and start processing online payments.
7. Payment gateways and payment providers offer highly effective security and anti-fraud tools to
make transactions reliable.
Q.5 Explain the ways and means of protecting the data of clients in an e- business environment. 8

Q.6 What is the role of internet in e-business? What are the uses, merits, and demerits of internet

in business? Explain. 8

Q.7 You have to launch a new product on web using an e-commerce site. 8+8

a. Explain the strategies for sales and promotion.

Ans.) Virtually all ecommerce businesses can and should use these low-cost marketing
strategies. I consider these tactics to be the building blocks of an ecommerce marketing
strategy, because even one single action (like updating keywords or just one blog post) can
yield return for years to come.

1. Optimize Your Site for Search

Search engine optimization (SEO) is still an essential part of marketing and you want to
make sure that both your site and all of your individual product pages are fully optimized for
the exact keywords your audience is searching for.

Keyword research can help with that. You can check out our full guide on how to conduct
thorough keyword research here.
Watch out for dialect differences, too. Are they searching for “timepiece” instead of
“watch?” Make sure you’re optimizing for those keywords correctly, even if the general
population is searching for them less overall.

2. Include Reviews on Product Pages

I can’t overstate the importance of reviews. 84% of people trust online reviews as much as
they trust their friends. That means we either really trust reviews or we all have really bad
friends…I’m going to assume it’s the former. As if that’s not significant enough, 88% of
users incorporate reviews into their buying decision. You can’t afford to skip out on reviews.

There are a lot of plugins for WordPress and Shopify apps that make it easy to upload
customer reviews (which can include pictures and videos) to your product pages. Yotpo
and Pixlee are both excellent services that can help with this.

3. Use Content Marketing

For many ecommerce businesses, content marketing means blogging, but also can include
using lead magnets like ebooks to bring customers to your site and encourage them to
purchase or sign-up for your email list.

Content marketing is free if you do it yourself, though you can also hire content marketers
to develop your strategy for you or to write the posts entirely.

Remember that your blog shouldn’t be about the new products you have. Instead, if you’re
an ecommerce company wanting to promote a new line of fitness apparel, write a post
talking about the different qualities that people should look for in clothing when they’re
doing different types of exercises.
4. Guest Post

You can extend your reach to other blogs and publications, putting your content in front of a
new audience and getting a few key links back to your site.

Only submit posts to high quality, high authority publications that you want your business to
be associated with and preferably only those with engaged readerships.

5. Market on Social Media

Social media marketing is entirely free (unless you outsource it) and it’s an excellent way to
build and nurture relationships with customers. It can also help you connect with new users
thanks to sharing, Facebook recommendations and algorithms that share what your friends
are up to.

In my opinion, Facebook, Instagram, and Pinterest are the three key social media platforms
that ecommerce businesses should be focusing on, though Twitter is a close fourth.

When it comes to social media marketing for ecommerce, make sure that you’re focusing
on customer relationships more than just endlessly and exclusively promoting your own
products. You also want to answer questions fast to avoid abandoned carts.

6. Start Email Marketing

Email marketing is a cornerstone part of ecommerce marketing and if you don’t think it can
be effective, you’re wrong. With great visuals and great copywriting, you can deliver
targeted suggestions, product announcements and discount offers to an audience who is
already interested in your product.

Include personalization in your emails where possible. Add user names to the email subject
line, or send automatically customized recommendations based on past purchases with
segmented email lists.
This will help you a great deal, as one case study found that automated personalized
emails had a 75% higher open rate than those that lacked personalization.

b. Write a brief note on ACID Test.

Ans.) ACID (atomicity, consistency, isolation, and durability) is an acronym and mnemonic
device for learning and remembering the four primary attributes ensured to any transaction
by a transaction manager (which is also called a transaction monitor). These attributes are:

Atomicity: In a transaction involving two or more discrete pieces of information, either all of
the pieces are committed or none are.

Consistency:A transaction either creates a new and valid state of data, or, if any failure
occurs, returns all data to its state before the transaction was started.

Isolation: A transaction in process and not yet committed must remain isolated from any
other transaction.

Durability: Committed data is saved by the system such that, even in the event of a failure
and system restart, the data is available in its correct state.

The ACID concept is described in ISO/IEC 10026-1:1992 Section 4. Each of these

attributes can be measured against a benchmark. In general, however, a transaction
manager or monitor is designed to realize the ACID concept. In a distributed system, one
way to achieve ACID is to use a two-phase commit (2PC), which ensures that all involved
sites must commit to transaction completion or none do, and the transaction is rolled back.