Unit 4: E-Commerce and E-Business

81. What is the primary function of E-business?

A. Buying and selling goods online
B. Conducting all business operations online
C. Operating only in physical stores
D. Eliminating supply chain management
(Answer: B)
82. Which of the following is a component of E-business?
A. Paper-based transactions
B. Digital marketing
C. Manual supply chain operations
D. Brick-and-mortar sales only
(Answer: B)
83. Supply Chain Management in E-business involves:
A. Coordinating the flow of goods and services
B. Eliminating logistics
C. Increasing physical store visits
D. Limiting business growth
(Answer: A)
84. What is the major characteristic of E-business?
A. Requires only a physical store
B. Can operate 24/7 without geographical barriers
C. Limited to one country
D. Only includes retail sales
(Answer: B)
85. A benefit of E-commerce is:
A. High setup cost
B. Convenience and global reach
C. Reduced access to products
D. Slower transactions
(Answer: B)
86. Which of the following is an example of E-commerce?
A. A local market selling goods
B. Amazon selling products online
C. In-person banking transactions
D. Paper-based order processing
(Answer: B)
87. A risk of E-business transactions is:
A. No requirement for marketing
B. Cybersecurity threats and fraud
C. Increased in-person transactions
D. Elimination of supply chains
(Answer: B)
88. M-commerce refers to:
A. Shopping on mobile devices
 B. Buying from physical stores
C. In-person customer interactions
D. Reducing digital marketing efforts
(Answer: A)
89. What differentiates E-business from E-commerce?
A. E-business includes all business processes online
B. E-commerce only focuses on online transactions
C. E-business excludes supply chain management
D. Both A and B
(Answer: D)
90. Cloud computing in E-business allows:
A. Storing, managing, and processing data remotely
B. Eliminating online transactions
C. Conducting all transactions offline
D. Increased paperwork
(Answer: A)

91. Which of the following is an example of a Business-to-Consumer (B2C) E-commerce

model?
A. A manufacturer selling parts to a retailer
B. A consumer selling a used product on eBay
C. A company selling directly to customers through an online store
D. A business procuring raw materials online
(Answer: C)
92. What is a key feature of Mobile Commerce (M-commerce)?
A. It requires desktop computers
B. It enables transactions via mobile devices
C. It is restricted to physical stores
D. It eliminates the need for online marketing
(Answer: B)
93. Which technology is essential for the security of online payments in E-commerce?
A. Two-factor authentication
B. Physical cash registers
C. Manual invoicing
D. Paper-based receipts
(Answer: A)
94. What is the primary disadvantage of E-business?
A. Limited operational hours
B. Cybersecurity threats
C. Inability to reach global markets
D. High cost of setup
(Answer: B)
95. Which of the following is an advantage of using cloud computing in E-business?
A. Reduced data accessibility
B. Improved data storage and scalability
C. Requirement for physical data centers
 D. Increased reliance on paper-based transactions
(Answer: B)
96. Which term describes the use of AI and automation in E-commerce for personalized
recommendations?
A. Predictive analytics
B. Traditional marketing
C. Physical inventory tracking
D. Paper-based advertising
(Answer: A)
97. What is an example of Social Commerce?
A. Purchasing products directly from a retailer's Instagram shop
B. Buying a product at a physical store
C. Calling customer service to place an order
D. Using an ATM for withdrawals
(Answer: A)
98. Which of the following is a limitation of E-commerce?
A. Instant product delivery
B. Dependence on internet connectivity
C. Lower cost of operations
D. Increased sales opportunities
(Answer: B)
99. Which type of E-commerce involves businesses selling goods or services to other
businesses?
A. Business-to-Consumer (B2C)
B. Business-to-Business (B2B)
C. Consumer-to-Consumer (C2C)
D. Direct-to-Consumer (D2C)
(Answer: B)
100. A key characteristic of E-business is:
A. A fixed working schedule
B. Global reach and 24/7 operations
C. Exclusive reliance on brick-and-mortar stores
D. High dependency on manual record-keeping
(Answer: B)

Session 2: Scope of E-Business and E-Commerce Systems

101. What does the scope of E-business primarily include?

A. Only online sales
B. Various business processes like sales, marketing, and supply chain management
C. Traditional business models
D. Only financial transactions
(Answer: B)
102. Which of the following is a risk associated with E-business?
A. Instant physical delivery
B. Transaction risks and cybersecurity threats
 C. Reduced digital marketing costs
D. Guaranteed data security
(Answer: B)
103. What does Customer Relationship Management (CRM) in E-business focus
on?
A. Managing customer interactions and support
B. Eliminating customer service
C. Selling only physical products
D. Reducing market presence
(Answer: A)
104. Which of the following is a common area of E-commerce?
A. Order management and shipping logistics
B. Manual order processing
C. Only traditional retail stores
D. Reducing online business operations
(Answer: A)
105. What is a key aspect of Supply Chain Management in E-business?
A. Managing product inventory and logistics
B. Only selling in physical stores
C. Reducing online transactions
D. Eliminating customer engagement
(Answer: A)
106. Which type of E-business risk involves stolen or altered data?
A. Transaction risks
B. Data storage and transmission risks
C. Customer service risks
D. Product delivery risks
(Answer: B)
107. What is an important security measure in E-business transactions?
A. Payment authorization and identity verification
B. Eliminating digital payments
C. Ignoring fraudulent activities
D. Disabling encryption protocols
(Answer: A)
108. Which of the following is NOT a key component of E-commerce systems?
A. Traditional bookkeeping
B. Online payment processing
C. Website or mobile app for transactions
D. Inventory management systems
(Answer: A)
109. What is a major advantage of using E-commerce systems?
A. Increased convenience and 24/7 availability
B. Reduced internet security
C. Slower transactions
D. Increased dependency on manual records
(Answer: A)
 110. How can businesses mitigate transaction risks in E-business?
A. Implementing order confirmation and payment security
B. Ignoring customer identity verification
C. Reducing online payment options
D. Removing fraud detection systems
(Answer: A)

Session 3: Essential E-Commerce and Electronic Payment Processes

116. Which of the following is the first step in an E-commerce transaction?

A. Payment processing
B. Order confirmation
C. Product or service selection
D. Customer support
(Answer: C)
117. What is the role of a shopping cart in E-commerce?
A. To process customer payments
B. To allow customers to add and review selected products before purchasing
C. To ship products to customers
D. To generate website analytics
(Answer: B)
118. Which of the following is a key function of payment processing in E-
commerce?
A. Managing inventory levels
B. Securing transactions and verifying payment details
C. Marketing products to customers
D. Handling customer service complaints
(Answer: B)
119. What ensures customers receive confirmation of their online purchase?
A. Order fulfillment
B. Order confirmation notification
C. Supply chain management
D. Inventory restocking
(Answer: B)
120. Which of the following is NOT an essential E-commerce process?
A. Data analysis
B. Cybersecurity
C. Manual bookkeeping
D. Order fulfillment
(Answer: C)
121. How do digital wallets enhance electronic payment systems?
A. By eliminating all transaction fees
B. By storing payment details for quick and secure transactions
C. By converting physical currency into cryptocurrency
D. By restricting online shopping
(Answer: B)
 122. Which electronic payment method involves direct bank-to-bank transfers?
A. Digital wallets
B. Electronic Funds Transfer (EFT)
C. Credit card payments
D. Cash on delivery
(Answer: B)
123. What is a key advantage of using cryptocurrency for payments?
A. Transactions are processed instantly with no security concerns
B. Transactions are decentralized and secured via blockchain
C. Transactions always offer full refunds
D. Transactions require government approval
(Answer: B)
124. Which step comes last in an electronic payment transaction?
A. Payment authorization
B. Payment initiation
C. Payment confirmation
D. Settlement
(Answer: D)
125. Which of the following ensures E-commerce payment security?
A. Encryption and secure payment gateways
B. Disabling payment verification
C. Sharing customer financial data
D. Removing order tracking features
(Answer: A)

Session 4: Customer Relationship Management (CRM) and Its Phases

131. What is the primary goal of Customer Relationship Management (CRM)?

A. Reducing customer interactions
B. Improving customer relationships and increasing sales
C. Eliminating customer service
D. Limiting business growth
(Answer: B)
132. Which of the following is a key feature of CRM systems?
A. Manual data collection
B. Contact management and customer tracking
C. Reducing customer service support
D. Ignoring customer feedback
(Answer: B)
133. What are the three main phases of CRM?
A. Customer acquisition, customer retention, customer extension
B. Sales, marketing, inventory management
C. Data collection, reporting, automation
D. Customer inquiry, complaint, closure
(Answer: A)
 134. Which CRM phase focuses on attracting new customers?
A. Customer retention
B. Customer acquisition
C. Customer extension
D. Customer service
(Answer: B)
135. What is a benefit of using CRM in businesses?
A. Increased customer satisfaction and loyalty
B. Reduced sales tracking
C. Limited customer engagement
D. Elimination of marketing strategies
(Answer: A)
136. Which type of CRM focuses on using data and analytics to understand
customers?
A. Operational CRM
B. Analytical CRM
C. Collaborative CRM
D. Interactive CRM
(Answer: B)
137. What challenge do businesses face when implementing CRM?
A. Lack of customer data
B. Integration with existing systems
C. Limited employee training
D. Eliminating customer interaction
(Answer: B)
138. Which CRM feature helps businesses track sales opportunities?
A. Marketing automation
B. Contact management
C. Sales management
D. Customer complaint tracking
(Answer: C)
139. Why is data security a major concern in CRM?
A. CRM systems store sensitive customer information
B. CRM eliminates data storage
C. CRM systems do not require security protocols
D. CRM discourages digital transactions
(Answer: A)
140. How can CRM help businesses scale efficiently?
A. By adapting to business growth and changing needs
B. By restricting marketing efforts
C. By reducing automation
D. By limiting data collection
(Answer: A)

Session 5: Enterprise Resource Planning (ERP), Benefits, Challenges, and

Trends
146. What is the primary purpose of an Enterprise Resource Planning (ERP)
system?
A. Managing customer relationships
B. Integrating business functions for efficiency
C. Replacing all human decision-making
D. Reducing employee roles
(Answer: B)
147. Which of the following is NOT a common module in ERP systems?
A. Financial management
B. Supply chain management
C. Online gaming
D. Human resources management
(Answer: C)
148. What is a major benefit of ERP systems?
A. Improved data accuracy and efficiency
B. Increased manual workload
C. Limited data sharing
D. Slower decision-making
(Answer: A)
149. Which of the following is a common challenge of ERP implementation?
A. Fast and easy deployment
B. Integration with existing systems
C. No training required
D. Lack of customization options
(Answer: B)
150. How does ERP improve decision-making?
A. By centralizing data and providing real-time insights
B. By restricting access to information
C. By increasing paperwork
D. By removing automation tools
(Answer: A)
151. Which ERP trend involves using AI to optimize processes?
A. Mobile ERP
B. AI-powered insights
C. Two-tier ERP
D. Digital transformation
(Answer: B)
152. What is the key advantage of cloud-based ERP solutions?
A. Lower upfront costs and scalability
B. Increased maintenance complexity
C. Limited accessibility
D. Slower system updates
(Answer: A)
153. Two-tier ERP is used when:
A. A company has a single ERP system for all departments
B. A company integrates separate ERP systems for corporate and subsidiaries
 C. ERP is replaced by manual processes
D. The company does not use any ERP
(Answer: B)
154. What is a significant challenge of ERP implementation?
A. Long implementation time
B. Instant data migration
C. No need for user training
D. Limited functionality
(Answer: A)
155. Which emerging ERP trend focuses on improving user experience through
chatbots and automation?
A. Traditional ERP
B. Digital transformation
C. AI-powered personalization
D. Static ERP systems
(Answer: C)

Session 6: Supply Chain Management (SCM), Roles, Benefits, Challenges, and

Trends

161. What is the main goal of Supply Chain Management (SCM)?

A. Reducing production entirely
B. Managing the flow of goods, services, and information efficiently
C. Eliminating suppliers
D. Increasing product prices
(Answer: B)
162. Which of the following is a key role of SCM?
A. Increasing costs
B. Coordinating logistics and transportation
C. Limiting supplier communication
D. Reducing product quality
(Answer: B)
163. Which SCM activity involves tracking raw materials and components?
A. Customer service
B. Inventory management
C. Employee training
D. Digital marketing
(Answer: B)
164. What is a major benefit of SCM for businesses?
A. Increased costs
B. Enhanced product availability and faster delivery times
C. Decreased customer satisfaction
D. Limiting supply chain flexibility
(Answer: B)
165. Which of the following is a challenge in Supply Chain Management?
A. High supplier visibility
 B. Lack of traceability and transparency
C. Easy demand forecasting
D. No compliance requirements
(Answer: B)
166. What role does SCM play in improving financial performance?
A. Increasing inefficiencies
B. Reducing inventory costs and improving cash flow
C. Removing logistics support
D. Reducing customer satisfaction
(Answer: B)
167. Which of the following technologies is transforming SCM trends?
A. Blockchain and Artificial Intelligence (AI)
B. Manual record-keeping
C. Paper-based tracking systems
D. Isolated databases
(Answer: A)
168. How does automation benefit Supply Chain Management?
A. Increases manual workload
B. Reduces lead times and improves efficiency
C. Slows down order processing
D. Eliminates digital tracking
(Answer: B)
169. Why is sustainability a growing focus in SCM?
A. To increase environmental impact
B. To reduce waste and carbon footprint
C. To eliminate suppliers
D. To slow down supply chain processes
(Answer: B)
170. Which SCM trend focuses on increasing supply chain agility?
A. Rigid supply networks
B. Omnichannel fulfillment and demand-driven supply chains
C. Eliminating technology from logistics
D. Increasing paper-based transactions
(Answer: B)

171. E-business refers to conducting all forms of business operations _______.

(Answer: online)
172. Digital marketing uses _______ to promote products and services.
(Answer: online channels)
173. M-commerce is the buying and selling of goods and services through _______.
(Answer: mobile devices)
174. Supply Chain Management involves managing the flow of goods from the
supplier to the _______.
(Answer: customer)
175. Cybersecurity threats are a major concern in E-business due to the risk of
_______.
(Answer: fraud/hacking)
176. E-commerce platforms such as Amazon and eBay allow users to buy and sell
products over the _______.
(Answer: internet)
177. Cloud computing enables businesses to store and process data without relying on
_______ servers.
(Answer: local)
178. Social commerce refers to the buying and selling of products through _______
platforms.
(Answer: social media)
179. A major advantage of E-business is that it operates without _______ barriers.
(Answer: geographic)
180. Mobile technology enables users to access and interact with E-business systems
through _______.
(Answer: smartphones/tablets)
181. The scope of E-business includes sales, marketing, and _______ management.
(Answer: supply chain)
182. A key risk in E-business transactions is _______ fraud, where hackers steal
customer information.
(Answer: cybersecurity)
183. Customer Relationship Management (CRM) helps businesses manage
customer interactions and provide better _______.
(Answer: support/service)
184. One of the main components of E-commerce is _______ processing, which
ensures secure digital payments.
(Answer: payment)
185. An important security measure in E-business is order _______ to verify
transactions.
(Answer: confirmation)
186. The first step in an E-commerce transaction is _______ selection.
(Answer: product or service)
187. A shopping cart allows customers to add and review selected products before
they proceed to _______.
(Answer: checkout)
188. Payment processing in E-commerce ensures that transactions are _______
and secure.
(Answer: verified)
189. After placing an order, customers receive an _______ confirming their
purchase.
(Answer: order confirmation)
190. Cryptocurrency transactions are secured through a decentralized technology
called _______.
(Answer: blockchain)
191. The main goal of CRM is to improve customer relationships and increase
_______.
(Answer: sales)
192. The three phases of CRM are customer acquisition, customer retention, and
customer _______.
(Answer: extension)
193. CRM systems collect data from various touchpoints such as websites, phone
calls, and _______.
(Answer: social media)
194. A major benefit of CRM is improved customer satisfaction and _______.
(Answer: loyalty)
195. CRM software helps automate and streamline sales, marketing, and
customer _______ processes.
(Answer: service)
196. The purpose of ERP is to integrate various _______ of an organization into a
unified system.
(Answer: functions)
197. One key advantage of ERP is improved _______ by providing real-time data
access.
(Answer: decision-making)
198. A major challenge in ERP adoption is the complexity of system _______ with
existing processes.
(Answer: integration)
199. AI-powered ERP solutions help automate tasks and improve _______
efficiency.
(Answer: operational)
200. Cloud-based ERP systems reduce upfront costs and provide greater _______
for businesses.
(Answer: scalability)
201. The goal of Supply Chain Management (SCM) is to improve the efficiency of
managing goods, services, and _______.
(Answer: information)
202. An important role of SCM is to coordinate _______ and transportation to
ensure timely product delivery.
(Answer: logistics)
203. One of the benefits of SCM is increased _______ by optimizing supply chain
processes.
(Answer: efficiency)
204. A key challenge of SCM is the lack of _______ in supplier networks, making
it difficult to track products.
(Answer: visibility)
205. SCM trends include the rise of AI, IoT, and _______ to enhance supply chain
operations.
(Answer: blockchain)