1. Which technology is commonly used for secure online transactions in both B2B and B2C E-commerce?

• (A) Blockchain
• (B) Augmented reality
• (C) Virtual reality
• (D) Secure sockets layer
Correct Answer: (D) Secure sockets layer
Explanation: SSL encrypts data during transmission, ensuring secure online transactions.

2. In an intermediate-oriented marketplace, what role does the platform play?

• (A) Directly connects buyers and sellers
• (B) Acts as an intermediary between buyers and sellers
• (C) Both of these
• (D) None
Correct Answer: (B) Acts as an intermediary between buyers and sellers
Explanation: The platform typically facilitates transactions by acting as a middleman.

3. What does "just-in-time" delivery refer to in B2B E-commerce?

• (A) Delivering products exactly when needed
• (B) Delivering products ahead of schedule
• (C) Delivering products after the deadline
• (D) Delivering products randomly
Correct Answer: (A) Delivering products exactly when needed
Explanation: Just-in-time delivery reduces inventory costs by delivering products only when required.

4. In a supplier-oriented marketplace, who has more control over pricing and product availability?
• (A) Buyers
• (B) Suppliers
• (C) Both of these
• (D) None
Correct Answer: (B) Suppliers
Explanation: In supplier-oriented markets, suppliers control product availability and pricing.

5. Which type of marketplace focuses on meeting the specific needs and preferences of buyers?
• (A) Supplier-oriented
• (B) Buyer-oriented
• (C) Both of these
• (D) None
Correct Answer: (B) Buyer-oriented
Explanation: Buyer-oriented marketplaces focus on catering to the specific demands and preferences of buyers.

6. What is the primary purpose of the internet in E-Governance?

• (A) To credit online communities
• (B) To facilitate government-citizen interactions
• (C) To promote E-commerce
• (D) To provide entertainment
Correct Answer: (B) To facilitate government-citizen interactions
Explanation: The internet enables direct interaction between the government and citizens for services and
information.
7. What are the benefits of E-commerce?
• (A) Increasing inefficiency
• (B) Delivering services to citizens
• (C) Reducing transparency
• (D) Decreasing citizen participation
Correct Answer: (B) Delivering services to citizens
Explanation: E-commerce helps governments deliver essential services to citizens efficiently.

8. Which phase of E-governance involves providing information to citizens?

• (A) Interaction phase
• (B) Transaction phase
• (C) Transformation phase
• (D) Information phase
Correct Answer: (D) Information phase
Explanation: The information phase focuses on providing citizens with accessible government-related information.

9. What is the primary goal of E-governance?

• (A) To increase government bureaucracy
• (B) To improve information and service delivery
• (C) To reduce citizen participation
• (D) To make government less transparent
Correct Answer: (B) To improve information and service delivery
Explanation: The goal of E-governance is to enhance the accessibility and delivery of services and information.

10. Which of the following describes E-commerce?

• (A) Doing business electronically
• (B) Doing business
• (C) Sale of goods
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: E-commerce includes all aspects of doing business electronically, including buying, selling, and the trade
of goods.

11. E-commerce stands for:

• (A) Engineering commerce
• (B) Electronic commerce
• (C) Economic commerce
• (D) None
Correct Answer: (B) Electronic commerce
Explanation: E-commerce refers to commercial transactions conducted electronically via the internet.

12. Which of the following is an advantage of E-commerce?

• (A) 24x7 coverage
• (B) Geographic reach
• (C) Information sharing
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: E-commerce offers benefits like 24x7 availability, broad geographic reach, and easy information sharing.
13. E-commerce means doing business on the internet.
• (A) Business
• (B) Research
• (C) Logging
• (D) Chatting
Correct Answer: (A) Business
Explanation: E-commerce specifically refers to conducting business transactions online.

14. Which of the following is part of the four main types of E-commerce?
• (A) B2B
• (B) B2C
• (C) C2B
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: B2B, B2C, and C2B are all common types of e-commerce.

15. E-commerce refers to:

• (A) Buying products
• (B) Selling products
• (C) Both (A) and (B)
• (D) None
Correct Answer: (C) Both (A) and (B)
Explanation: E-commerce includes both buying and selling of products and services online.

16. Which of the following is not an E-commerce activity?

• (A) A2B
• (B) C2C
• (C) C2B
• (D) B2B
Correct Answer: (A) A2B
Explanation: A2B is not a recognized e-commerce model, whereas B2B, C2B, and C2C are standard types.

17. Which of the following is an important process in an E-commerce life-cycle?

• (A) Service
• (B) Payments
• (C) Ordering
• (D) All of these
Correct Answer: (D) All of these
Explanation: Service, payments, and ordering are all crucial processes in the e-commerce life cycle.

18. Amazon.com belongs to which segment?

• (A) B2B
• (B) B2C
• (C) C2B
• (D) C2C
Correct Answer: (B) B2C
Explanation: Amazon is a business-to-consumer (B2C) platform, where it sells directly to individual customers.
19. Which of the following is an application of E-commerce?
• (A) Online banking
• (B) Online shopping
• (C) Online marketing
• (D) All of these
Correct Answer: (D) All of these
Explanation: Online banking, shopping, and marketing are all applications of e-commerce.

20. Intra-business E-commerce is sometimes called E-commerce.

• (A) B2C
• (B) B2B
• (C) C2C
• (D) B2E
Correct Answer: (D) B2E
Explanation: B2E (Business to Employee) involves transactions between businesses and their employees, often for
internal use.

21. Which of the following is not a model of E-commerce?

• (A) D2D
• (B) B2B
• (C) C2C
• (D) B2C
Correct Answer: (A) D2D
Explanation: D2D (Device-to-Device) is not a recognized model of e-commerce. B2B, C2C, and B2C are common
models of e-commerce.

22. Which type of E-commerce focuses on consumers dealing with each other?
• (A) B2B
• (B) B2C
• (C) C2B
• (D) C2C
Correct Answer: (D) C2C
Explanation: C2C (Consumer-to-Consumer) focuses on transactions between consumers, such as through platforms
like eBay or Craigslist.

23. Online trading is a service offered on the internet for the purchase and sale of:
• (A) Goods
• (B) Services
• (C) Securities
• (D) None
Correct Answer: (C) Securities
Explanation: Online trading typically refers to the buying and selling of securities (stocks, bonds) over the internet
through platforms like stock trading websites.

24. Which of the following are models of E-commerce?

• (A) G2G
• (B) G2C
• (C) G2E
• (D) All of these
Correct Answer: (D) All of these
Explanation: G2G (Government-to-Government), G2C (Government-to-Citizen), and G2E (Government-to-Employee)
are all recognized models of e-commerce in the public sector.

25. E-commerce helps organizations to do business:

• (A) On holidays
• (B) 24 hours a day
• (C) On weekends
• (D) None
Correct Answer: (B) 24 hours a day
Explanation: E-commerce allows businesses to operate 24/7, as online platforms are available at all times for
transactions.

26. Which type deals with auction?

• (A) B2B
• (B) B2C
• (C) C2B
• (D) C2C
Correct Answer: (D) C2C
Explanation: Auctions, such as those on platforms like eBay, are typically part of C2C (Consumer-to-Consumer)
transactions, where consumers bid against each other.

27. EDI means:

• (A) Electronic Data Interchange
• (B) Economic Data Interchange
• (C) Electrical Data Interchange
• (D) None
Correct Answer: (A) Electronic Data Interchange
Explanation: EDI stands for Electronic Data Interchange, which refers to the electronic transfer of business
documents between companies in a standardized format.

28. Which of the following is not a requirement of E-commerce?

• (A) Internet-enabled computer
• (B) A website to show product
• (C) A method to receive payment
• (D) A middleman
Correct Answer: (D) A middleman
Explanation: E-commerce does not necessarily require a middleman, as businesses can directly interact with
consumers through online platforms.

29. Which technological input helped in E-governance?

• (A) E-mail
• (B) ICI
• (C) SMS
• (D) EDI
Correct Answer: (A) E-mail
Explanation: E-mail is a key technological input for e-governance, enabling communication between government and
citizens.
30. The best product to sell in B2C E-commerce are:
• (A) Small products
• (B) Digital products
• (C) Specialty products
• (D) Fresh products
Correct Answer: (B) Digital products
Explanation: Digital products (like e-books, software, or media) are ideal for B2C e-commerce because they can be
delivered instantly without physical shipping.

31. E-commerce helps to reduce costs of:

• (A) Transaction
• (B) Marketing
• (C) Both of the above
• (D) None
Correct Answer: (C) Both of the above
Explanation: E-commerce helps reduce transaction and marketing costs by automating processes and reducing the
need for physical stores or marketing intermediaries.

32. EDI compliance in the ability to:

• (A) Only sending
• (B) Only receiving
• (C) Both sending and receiving
• (D) None
Correct Answer: (C) Both sending and receiving
Explanation: EDI compliance involves the ability to both send and receive standardized electronic data for business
transactions.

33. Includes all electronic-based information exchanges within or between companies and customers:
• (A) E-Commerce
• (B) E-marketing
• (C) E-communication
• (D) E-business
Correct Answer: (D) E-business
Explanation: E-business includes all electronic-based information exchanges, not just buying and selling (which is E-
commerce).

34. All of the following are techniques B2C E-commerce companies use to attract customers, except:
• (A) Registering with search engine
• (B) Viral marketing
• (C) Online ads
• (D) Virtual marketing
Correct Answer: (D) Virtual marketing
Explanation: "Virtual marketing" is not a standard term; techniques like search engine registration, viral marketing,
and online ads are common strategies for attracting B2C customers.

35. Which of the following is not the limitation of E-governance?

• (A) High cost
• (B) Security
• (C) Illiteracy
 • (D) Technical difficulties
Correct Answer: (B) Security
Explanation: Security is a challenge in e-governance, but it is not considered a fundamental limitation as solutions
can be implemented.

36. Which products are people most likely to be comfortable buying on the internet?
• (A) Books
• (B) Mobiles
• (C) Shoes
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: People are comfortable purchasing a variety of products like books, mobiles, and shoes online due to
convenience and detailed information available for these products.

37. EDI is necessary in:

• (A) B2C E-commerce
• (B) C2C E-commerce
• (C) B2B E-commerce
• (D) Commerce using internet
Correct Answer: (C) B2B E-commerce
Explanation: EDI (Electronic Data Interchange) is commonly used in B2B (Business-to-Business) transactions for the
exchange of business documents like purchase orders and invoices.

38. Which is a function of E-commerce?

• (A) Marketing
• (B) Advertising
• (C) Warehousing
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: E-commerce encompasses various functions including marketing, advertising, and warehousing, to
enable businesses to operate online.

39. Which is a benefit of E-commerce?

• (A) Lack of human contact
• (B) Security issues
• (C) Global marketplace
• (D) International Legislation
Correct Answer: (C) Global marketplace
Explanation: A key benefit of e-commerce is the ability to access a global marketplace, allowing businesses to reach
customers worldwide.

40. Electronic tax payment belongs to the category of:

• (A) C2C
• (B) B2B
• (C) P2P
• (D) C2G
Correct Answer: (D) C2G
Explanation: Electronic tax payment involves transactions between the consumer (C) and the government (G),
making it a C2G (Consumer-to-Government) activity.
41. What type of E-commerce occurs when a business sells its product or service to other businesses over the
internet?
• (A) B2B
• (B) B2C
• (C) C2C
• (D) None
Correct Answer: (A) B2B
Explanation: B2B (Business to Business) refers to transactions between businesses, where one business sells its
products or services to another business over the internet.

42. During E-commerce transactions, we should ensure:

• (A) Integrity
• (B) Security
• (C) Confidentiality
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: In e-commerce, ensuring integrity, security, and confidentiality is crucial to maintain safe and reliable
transactions.

43. When two companies are linked together by computers and they send business transactions through these
computers, they are probably using:
• (A) EDI
• (B) B2C
• (C) Smart cards
• (D) Digital wallets
Correct Answer: (A) EDI
Explanation: EDI (Electronic Data Interchange) is the system used to exchange business documents and transactions
electronically between companies.

44. Which of the following is the advantage of E-banking?

• (A) Availability
• (B) Convenience
• (C) Transactional speed
• (D) All of these
Correct Answer: (D) All of these
Explanation: E-banking offers availability 24/7, convenience for conducting transactions remotely, and transactional
speed for quicker operations.

45. B2B E-commerce deals:

• (A) Direct selling and support to business
• (B) Industry portals
• (C) Information sites about an industry
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: B2B (Business to Business) e-commerce includes direct selling, industry portals, and informational
websites related to industries.
46. Which one is not a layer of E-commerce infrastructure?
• (A) Physical layer
• (B) Product layer
• (C) Service layer
• (D) None
Correct Answer: (B) Product layer
Explanation: E-commerce infrastructure typically includes physical, service, and transaction layers. The product layer
is not considered a part of the basic infrastructure.

47. EFT stands for:

• (A) Emerging financial transfer
• (B) Electronic fund transfer
• (C) Electronic financial transfer
• (D) Emerging fund transfer
Correct Answer: (B) Electronic fund transfer
Explanation: EFT stands for Electronic Fund Transfer, a system that facilitates electronic money transfers between
banks and accounts.

48. E-Governance stands for:

• (A) Emerging governance
• (B) Electronic governance
• (C) Economic governance
• (D) None
Correct Answer: (B) Electronic governance
Explanation: E-Governance refers to the use of electronic systems and the internet to provide government services
and information to citizens.

49. Which of the following is an example of B2C E-commerce?

• (A) Amazon.com
• (B) Dell.com
• (C) Lastminute.com
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: All listed examples are B2C (Business to Consumer) e-commerce websites, where businesses sell
products directly to consumers.

50. What is an arrangement made between E-commerce sites that direct users from one site to another?
• (A) Spam
• (B) Viral marketing
• (C) Affiliate programs
• (D) None
Correct Answer: (C) Affiliate programs
Explanation: Affiliate programs involve one website directing users to another, typically for a commission on sales
made through that referral.

51. E-banking offers benefits to:

• (A) Customer
• (B) Banks
• (C) Government
 • (D) All of these
Correct Answer: (D) All of these
Explanation: E-banking offers advantages to customers for ease of transactions, banks for operational efficiency, and
governments for financial regulation and taxation.

52. Which of the following is a major area of E-governance?

• (A) Public grievances
• (B) Social services
• (C) Rural services
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: E-governance encompasses public grievances, social services, and rural services, aiming to improve
government-citizen interaction.

53. What is the percentage of customers who visit a website and actually buy something called?
• (A) Affiliate programs
• (B) Click through
• (C) Spam
• (D) Conversion rate
Correct Answer: (D) Conversion rate
Explanation: The conversion rate refers to the percentage of visitors to a website who complete a purchase or
desired action.

54. What are ballpoint pens purchased by a clothing company?

• (A) Direct materials
• (B) Indirect materials
• (C) EDI
• (D) None
Correct Answer: (B) Indirect materials
Explanation: Indirect materials are items like pens, paper, or other office supplies not directly used in the production
process but necessary for business operations.

55. Most individuals are familiar with which form of E-commerce?

• (A) B2B
• (B) B2C
• (C) C2B
• (D) C2C
Correct Answer: (B) B2C
Explanation: B2C (Business to Consumer) is the most common form of e-commerce, where businesses sell products
or services directly to consumers.

56. Which form of E-commerce currently accounts for about 97% of all E-commerce revenues?
• (A) B2B
• (B) B2C
• (C) C2B
• (D) C2C
Correct Answer: (A) B2B
Explanation: B2B (Business to Business) e-commerce accounts for the majority of e-commerce revenues due to bulk
transactions between businesses.
57. If it is easy for competitors to enter the market, the threat of new entrants is considered?
• (A) High
• (B) Low
• (C) More
• (D) Less
Correct Answer: (A) High
Explanation: A high threat of new entrants occurs when it is easy for competitors to enter the market, potentially
increasing competition.

58. Unique value auction mainly applies to?

• (A) New products
• (B) Second-hand products
• (C) Engineering products
• (D) None
Correct Answer: (A) New products
Explanation: Unique value auctions are typically used for new products that are being sold at a price based on bids
in an auction setting.

59. Which form of E-marketplace brings together buyers and sellers from the same industry?
• (A) Horizontal
• (B) Vertical
• (C) Integrated
• (D) Inclined
Correct Answer: (B) Vertical
Explanation: Vertical marketplaces bring together buyers and sellers from the same industry, focusing on specific
industries like manufacturing or agriculture.

60. The viruses spread through:

• (A) Mails
• (B) Pen drives
• (C) Websites
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: Viruses can spread through emails, pen drives, and websites, all of which are common vectors for
malware and viruses.

61. Which one is not a threat for e-commerce?

• (A) Trojan horse
• (B) Viruses
• (C) Worm
• (D) None
Correct Answer: (D) None
Explanation: All of the listed options — Trojan horse, Viruses, and Worms — are common threats to e-commerce
systems, as they can compromise the security and integrity of e-commerce platforms. Therefore, none of these is an
exception to the list of threats.
62. Which one is not an E-payment method used in India?
• (A) Debit card
• (B) Credit card
• (C) E-cheque
• (D) None
Correct Answer: (D) None
Explanation: All the listed options — Debit card, Credit card, and E-cheque — are valid E-payment methods used in
India. Therefore, none of these can be considered incorrect.

63. Which one is not an online payment mode?

• (A) Cash on delivery
• (B) Debit card
• (C) Credit card
• (D) E-cheque
Correct Answer: (A) Cash on delivery
Explanation: Cash on delivery is a payment method where the customer pays in cash when the goods are delivered.
It is not an online payment method as the transaction occurs offline at the time of delivery. The other options —
Debit card, Credit card, and E-cheque — are online payment modes.

64. The basic elements of a website are:

• (A) Home page
• (B) Web page
• (C) Links and banners
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: A website consists of a home page, multiple web pages, and navigation tools like links and banners. All
these elements are essential for building and navigating a website.

65. Secure communication means:

• (A) Protect transmission of credit and number
• (B) Guarantee privacy of customer protect from
• (C) Unauthorised access of payment details
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: Secure communication ensures the safety of sensitive data during transmission, protects customer
privacy, and prevents unauthorized access to payment information.

66. E-banking is also known as:

• (A) ATM's
• (B) Net banking
• (C) Traditional banking
• (D) None
Correct Answer: (B) Net banking
Explanation: E-banking refers to conducting banking activities over the internet, which is commonly known as net
banking. It allows customers to perform financial transactions online without visiting a bank branch
67. Which one is a logical threat?
• (A) Hacking
• (B) Storm
• (C) Earthquake
• (D) None
Correct Answer: (A) Hacking
Explanation: Hacking is a logical threat as it involves unauthorized access to computer systems or networks, unlike
natural threats like storms or earthquakes.

68. Which E-government area is being used when government agencies send out and accept bids for work?
• (A) G2G
• (B) G2B
• (C) G2C
• (D) G2E
Correct Answer: (B) G2B
Explanation: G2B (Government to Business) involves electronic interactions between government and businesses,
such as publishing tenders and accepting bids for government contracts.

69. E-cheques are:

• (A) Prepaid
• (B) Post paid
• (C) Both (A) and (B)
• (D) None
Correct Answer: (D) None
Explanation: E-cheques function like traditional cheques and are drawn against available funds in a bank account.
They are neither prepaid nor postpaid, but processed upon presentation, making "None" the correct choice.

70. All of the following are major B2C business models except:
• (A) Content provider
• (B) Industry consortium
• (C) Transaction broker
• (D) Service provider
Correct Answer: (B) Industry consortium
Explanation: An industry consortium is a B2B model, not B2C. B2C business models focus on selling products or
services directly to consumers, unlike consortiums which involve collaboration between businesses.

71. The business model involves an independently owned vertical digital marketplace for direct inputs:
• (A) E-distributor
• (B) Exchange
• (C) E-procurement
• (D) Private industrial network
Correct Answer: (B) Exchange
Explanation: An Exchange is an independently owned digital marketplace that connects many suppliers and buyers in
a specific industry, primarily for direct inputs like raw materials or components.
72. G2C stands for:
• (A) Government to Employees
• (B) Government to Citizen
• (C) Government to Businessmen
• (D) Government to Government
Correct Answer: (B) Government to Citizen
Explanation: G2C (Government to Citizen) refers to the relationship and services provided by the government directly
to the public, such as issuing documents, licenses, and public service portals.

73. Compared to internet users, the number of cell phone subscribers is:
• (A) About the same
• (B) Slightly fewer
• (C) Much fewer
• (D) Much larger
Correct Answer: (D) Much larger
Explanation: The number of cell phone subscribers globally is much larger than internet users, as mobile phones are
more accessible and widely used even in areas with limited internet connectivity.

74. A website offering content created by third party transparently to customers is an example of:
• (A) Reintermediation
• (B) Syndication
• (C) Virtual manufacturing
• (D) Build-to-order
Correct Answer: (B) Syndication
Explanation: Syndication refers to the process of distributing content created by a third party through a website. The
site transparently shares this content with users, often seen in news, blogs, or media platforms.

75. B2C stands for:

• (A) Business to Consumer
• (B) Business to Company
• (C) Business to Corporation
• (D) Business to Buyer
Correct Answer: (A) Business to Consumer
Explanation: B2C (Business to Consumer) refers to transactions where businesses sell products or services directly to
individual consumers.

76. Which is the model of E-commerce if the seller is an individual and the buyer is a business?
• (A) Consumer to Business
• (B) Business to Consumer
• (C) Business to Business
• (D) Consumer to Consumer
Correct Answer: (A) Consumer to Business
Explanation: In the Consumer to Business (C2B) model, individuals (consumers) offer products or services to
businesses, which then purchase or use them — like freelance services or content licensing.
77. Which of the following model is part of E-governance?
• (A) G2C
• (B) B2B
• (C) B2C
• (D) C2C
Correct Answer: (A) G2C
Explanation: G2C (Government to Citizen) is a key component of e-governance, involving digital interactions
between the government and citizens for services like online bill payment, licenses, and public service delivery.

78. OLX is an example of E-commerce segment:

• (A) B2B
• (B) C2B
• (C) B2C
• (D) C2C
Correct Answer: (D) C2C
Explanation: OLX is a Consumer to Consumer (C2C) platform where individuals buy and sell goods or services
directly to each other without business involvement.

79. Which refers to paying the money back to the buyer after the price has been deducted from the account?
• (A) Refund
• (B) Deduction
• (C) Change base
• (D) None
Correct Answer: (A) Refund
Explanation: A refund is the process of returning money to the buyer after a transaction has been completed and the
amount has been deducted from their account

80. Benefit of E-commerce platform is:

• (A) Competitive prices to benefit both seller and buyer
• (B) Large number of products to choose from
• (C) Ability to buy products not available in local market
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: E-commerce platforms offer many advantages, including better pricing, a wide variety of products, and
access to items not found locally — making all the options correct.

81. Which of the following are advantages normally associated with B2B E-commerce?
• (A) Shorter cycle times
• (B) Reduction in costs
• (C) Both (A) and (B)
• (D) None
Correct Answer: (C) Both (A) and (B)
Explanation: B2B E-commerce typically leads to shorter cycle times due to automation and cost reduction through
streamlined procurement, inventory management, and communication.
82. If the threat of substitute products or services is low, it is:
• (A) Disadvantage to the supplier
• (B) Advantage to the buyer
• (C) Advantage to the supplier
• (D) None
Correct Answer: (C) Advantage to the supplier
Explanation: When there are few or no substitute products, suppliers face less competition and have more control
over pricing, which gives them a strategic advantage.

83. The threat of new entrants is high when it is _ to enter the market:
• (A) Hard for customers
• (B) Hard for competitors
• (C) Easy for competitors
• (D) Easy for customers
Correct Answer: (C) Easy for competitors
Explanation: The threat of new entrants increases when it is easy for competitors to enter the market due to low
barriers like minimal capital requirements or loose regulations.

84. The impact of technology is:

• (A) It has caused buyer power to increase
• (B) It has lessened the entry barriers for many industries
• (C) It has increased the threat of substitute products
• (D) All of the above
Correct Answer: (D) All of the above
Explanation: Technology empowers buyers with more choices, reduces barriers for new businesses to enter markets,
and enables the creation of alternative products, increasing overall competition.

85. When a transaction is processed online, how can the merchant verify the customer's identity?
• (A) Use Secure Sockets Layer
• (B) Use Secure Electronic Transaction
• (C) Use Electronic Data Interchange
• (D) Use Financial Electronic Data Interchange
Correct Answer: (B) Use Secure Electronic Transaction
Explanation: Secure Electronic Transaction (SET) is a protocol specifically designed to ensure secure and
authenticated online transactions by verifying both the customer and merchant identities.

86. Which of the following is a benefit of E-commerce to consumers?

• (A) Limited product options
• (B) Inconvenient shopping experience
• (C) 24x7 availability
• (D) High prices
Correct Answer: (C) 24x7 availability
Explanation: E-commerce platforms allow consumers to shop anytime, offering 24x7 availability, which is a major
convenience and benefit compared to traditional shopping.
87. What is a limitation of E-commerce?
• (A) Global reach
• (B) Lack of personal touch
• (C) Lower costs
• (D) Convenience
Correct Answer: (B) Lack of personal touch
Explanation: One key limitation of E-commerce is the lack of personal interaction, which can affect customer trust
and experience, especially for products requiring hands-on evaluation.

88. How does E-commerce benefit organisations?

• (A) By increasing overhead costs
• (B) By limited market reach
• (C) By enabling global reach
• (D) By reducing efficiency
Correct Answer: (C) By enabling global reach
Explanation: E-commerce allows organizations to reach customers worldwide, expanding their market beyond
geographical boundaries and increasing growth opportunities.

89. Traditional business practices typically involve:

• (A) Physical stores
• (B) Digital marketing
• (C) Online transactions
• (D) Virtual reality
Correct Answer: (A) Physical stores
Explanation: Traditional business models rely on physical stores for selling products and interacting with customers,
unlike modern digital approaches like online transactions or marketing.

90. Which model involves consumers shopping directly on the internet?

• (A) B2B
• (B) B2C
• (C) C2C
• (D) B2G
Correct Answer: (B) B2C
Explanation: In the B2C (Business to Consumer) model, businesses sell products or services directly to consumers
online, enabling them to shop directly through websites or apps.

91. E-commerce practices typically involve:

• (A) Face-to-face interaction
• (B) Physical currency
• (C) Online transactions
• (D) In-store pickups
Correct Answer: (C) Online transactions
Explanation: E-commerce is based on online transactions, where buying and selling of goods or services happen over
the internet without physical interaction.
92. What are E-brokers in the context of E-commerce?
• (A) Online travel agencies
• (B) Intermediaries connecting buyers and sellers
• (C) Government agencies regulatory E-commerce
• (D) Online banking services
Correct Answer: (B) Intermediaries connecting buyers and sellers
Explanation: E-brokers act as intermediaries in E-commerce, helping connect buyers and sellers by providing
platforms or services that facilitate transactions.

93. Which industry benefits from E-commerce in terms of online stock trading?
• (A) Healthcare
• (B) Travel
• (C) Finance
• (D) Retail
Correct Answer: (C) Finance
Explanation: The finance industry benefits significantly from E-commerce through online stock trading platforms,
enabling fast, convenient, and real-time trading for investors.

94. What type of delivery is common in B2B E-commerce?

• (A) Just-in-time delivery
• (B) Standard delivery
• (C) Express delivery
• (D) Bulk delivery
Correct Answer: (A) Just-in-time delivery
Explanation: Just-in-time delivery is common in B2B E-commerce as it helps businesses reduce inventory costs by
receiving goods only when needed for production or resale.

95. Which sector interfaces with E-governance as the private sector?

• (A) Education
• (B) Healthcare
• (C) Business
• (D) Agriculture
Correct Answer: (C) Business
Explanation: In E-governance, the Business sector interacts with the government through G2B (Government to
Business) services like licensing, tax filing, and tenders.

96. What is the exchange of goods or commodities and services for money called?
• (A) E-commerce
• (B) Commerce
• (C) Both of these
• (D) None
Correct Answer: (B) Commerce
Explanation: Commerce refers to the general exchange of goods and services for money, whether done online or
offline. E-commerce is a digital form of commerce.
97. Compared to B2C E-commerce, B2B E-commerce is:
• (A) Of equal size
• (B) Slightly smaller
• (C) Slightly larger
• (D) Much larger
Correct Answer: (D) Much larger
Explanation: B2B E-commerce involves transactions between businesses, often in large volumes and values, making
it much larger than B2C E-commerce in terms of scale and revenue.

98. Which of the following is an example of a digital wallet used for online payments?
• (A) PayPal
• (B) Cash
• (C) Cheque
• (D) Barter system
Correct Answer: (A) PayPal
Explanation: PayPal is a widely used digital wallet that allows users to make secure online payments and money
transfers electronically.

99. What is the term for the process of converting website visitors into customers by encouraging them to take
specific actions (e.g., making a purchase)?
• (A) Conversion optimization
• (B) Search engine optimization
• (C) Social media marketing
• (D) Content marketing
Correct Answer: (A) Conversion optimization
Explanation: Conversion optimization is the process of improving a website to increase the percentage of visitors
who complete desired actions, like making a purchase or signing up.

100. Which of the following is an application of B2B E-commerce?

• (A) Online retail stores
• (B) Social media marketing
• (C) Supply chain management
• (D) Personal blogs
Correct Answer: (C) Supply chain management
Explanation: Supply chain management is a key B2B E-commerce application, where businesses use online
platforms to manage procurement, inventory, and logistics efficiently.