1.

Define E-commerce and list two of its encoding it to prevent unauthorized access,
benefits. (2 marks) ensuring confidentiality and integrity.
E-commerce is the buying and selling of goods
and services over the internet. 10. Differentiate between Internet and
Benefits: Intranet. (2 marks)
Internet is a global, public network connecting
 Global market reach. millions of devices.
 24/7 availability. Intranet is a private network within an
organization, accessible only to authorized users.
2. Differentiate between E-commerce and E-
business. (2 marks) 11. What is Telnet? (2 marks)
E-commerce involves online commercial Telnet is a protocol that allows remote access to a
transactions (e.g., buying/selling). computer or server over the internet or a network
E-business includes all online business activities, for command-line operations.
including transactions, CRM, and supply chain
management. 12. What is FTP? (2 marks)
File Transfer Protocol (FTP) is a standard protocol
3. What is an E-hub? (2 marks) used to transfer files between a client and a server
An E-hub is an online platform that connects over a network.
buyers, sellers, and suppliers to facilitate
transactions and streamline supply chain 13. Define electronic market. (2 marks)
processes. An electronic market is an online platform where
buyers and sellers conduct transactions, often
4. Define tunneling. (2 marks) facilitated by e-commerce technologies.
Tunneling is the process of encapsulating data
packets within another protocol to securely 14. What is a smart card? (2 marks)
transmit them over a network, often used in A smart card is a plastic card embedded with a
VPNs. microchip that stores data and enables secure
transactions or identification.
5. What is Network Address Translation
(NAT)? (2 marks) 15. What is authentication? (2 marks)
NAT is a technique that translates private IP Authentication is the process of verifying the
addresses to public IP addresses, enabling devices identity of a user or system to ensure authorized
on a local network to access the internet using a access.
single public IP.
16. What is WWW? (2 marks)
6. Define client. Name its types. (2 marks) The World Wide Web (WWW) is a system of
A client is a device or program that requests interlinked hypertext documents and resources
services from a server. accessed via the internet using browsers.
Types: Thin client, Thick client.
17. Define client-server security. (2 marks)
7. What is a trade cycle? (2 marks) Client-server security involves protecting data and
A trade cycle is the sequence of stages in a communications between a client and server using
commercial transaction, including search, measures like encryption and authentication.
negotiation, execution, and after-sales service.
18. Write any two examples of e-waste. (2
8. Define EDI. (2 marks) marks)
Electronic Data Interchange (EDI) is the
electronic exchange of standardized business  Old mobile phones.
documents (e.g., invoices, purchase orders)  Discarded computers.
between organizations.
19. What is Internet Banking? (2 marks)
9. What is cryptography? (2 marks) Internet Banking is the provision of banking
Cryptography is the practice of securing data by services (e.g., fund transfers, bill payments)
through a secure online platform.
20. What is a digital certificate? (2 marks) negotiated pricing, supporting supply
A digital certificate is an electronic document that chain efficiency.
verifies the identity of a user or entity using a  C2C (Consumer-to-Consumer):
public key and a digital signature. Consumers sell to other consumers via
online platforms. Example: eBay enables
21. Why is a password used in a system? (2 users to auction used goods. C2C
marks) platforms charge fees and rely on user
A password is used to authenticate a user’s ratings for trust, fostering peer-to-peer
identity and protect a system from unauthorized marketplaces.
access.  C2B (Consumer-to-Business): Consumers
offer products or services to businesses.
22. How does a computer virus spread? (2 Example: Upwork allows freelancers to
marks) bid for company projects. This model
A computer virus spreads through infected files, empowers individuals to monetize skills
email attachments, malicious downloads, or and provides businesses with flexible
removable media like USB drives. talent.
 B2G (Business-to-Government):
23. List two types of electronic payment Businesses sell to government entities
methods. (2 marks) through e-procurement systems. Example:
Suppliers bidding on government tenders
 Credit/Debit cards. via online portals. B2G involves strict
 Digital wallets. compliance and large-scale contracts.
Each model leverages digital platforms to
24. What is the use of SSL in E-commerce? (2 streamline transactions, catering to diverse
marks) market needs.
Secure Sockets Layer (SSL) encrypts data
between a user’s browser and a website, ensuring 27. Compare traditional commerce with E-
secure transactions and data privacy. commerce. (5 marks)

25. Define VPN. (2 marks) Traditional E- Commerce

A Virtual Private Network (VPN) creates a secure, Commerce
encrypted connection over a public network, In traditional In e-commerce it is
enabling private data transmission. commerce it is easy to establish and
difficult to establish maintain standard
26. Explain the major business models of E- and maintain standard practices.
commerce. (5 marks) practices.
E-commerce business models define how In traditional In e-commerce
businesses and consumers interact online. The commerce direct indirect interaction
major models are: interaction through through seller and
seller and buyer is buyer occurs using
 B2C (Business-to-Consumer): Businesses present. electronic medium and
sell directly to individual consumers internet.
through online platforms. Example: Traditional commerce E-commerce is carried
Amazon sells electronics to customers. is carried out by face out by internet or other
Features include user-friendly interfaces, to face, telephone lines network
promotions, and fast delivery. B2C drives or mail systems. communication
retail e-commerce growth due to its technology.
accessibility. In traditional In e-commerce
 B2B (Business-to-Business): Businesses commerce processing processing of
sell products or services to other of transaction is transaction is
businesses. Example: Alibaba connects manual. automatic.
manufacturers with retailers for bulk In traditional In e-commerce
purchases. B2B involves larger commerce delivery of delivery of goods
transactions, long-term contracts, and goods is instant. takes time.
28. Describe B2C and B2B with examples. (5 29. What are the components and features of
marks) EDI? (5 marks)
B2C and B2B are core e-commerce models, Electronic Data Interchange (EDI) enables the
differing in their target customers and operational electronic exchange of standardized business
approaches. documents. Its components and features are:

 B2C (Business-to-Consumer):  Components:

o Definition: Businesses sell 1. EDI Standards: Formats like ANSI
products or services directly to X12 or EDIFACT ensure
individual consumers for personal documents (e.g., invoices) are
use. universally understood across
o Features: Focuses on user-friendly systems.
websites, personalized marketing, 2. Translation Software: Converts
fast delivery, and customer internal data formats to EDI
support. B2C platforms often use standards and vice versa, enabling
promotions (e.g., discounts, flash seamless integration with business
sales) to attract buyers. systems.
o Example: Flipkart sells 3. Communication Networks: Value-
smartphones to individual Added Networks (VANs) or
customers. Customers browse internet-based protocols (e.g., AS2)
products, place orders, and receive transmit EDI documents securely.
deliveries, often with options like 4. EDI-enabled Applications:
cash-on-delivery or EMI. Software like ERP systems
o Significance: Drives retail e- integrates EDI for automated
commerce, catering to consumer document processing.
convenience and variety.  Features:
 B2B (Business-to-Business): 1. Automation: Eliminates manual
o Definition: Businesses sell document handling, reducing
products or services to other processing time. For example,
businesses for operational or resale purchase orders are sent and
purposes. processed instantly.
o Features: Involves bulk orders, 2. Accuracy: Standardized formats
long-term contracts, and negotiated minimize errors compared to
pricing. B2B platforms prioritize paper-based systems.
reliability, scalability, and 3. Cost Efficiency: Reduces
integration with supply chains. paperwork, printing, and mailing
o Example: IndiaMART connects costs, benefiting large-scale
suppliers of raw materials (e.g., operations.
steel) with manufacturers. A 4. Speed: Accelerates transactions,
factory orders bulk materials, enabling faster order fulfillment
negotiates terms, and integrates and invoicing.
deliveries into production EDI is critical in e-commerce for
schedules. streamlining B2B transactions, as
o Significance: Supports industrial seen in supply chain management
and wholesale markets, enabling for companies like Walmart.
efficient procurement.
B2C focuses on individual
convenience, while B2B
emphasizes large-scale business
efficiency.
30. Compare HTML and XML with examples. e-commerce. Example: A seller receives
(5 marks) payment via a payment gateway.
E-commerce accelerates the trade cycle
HTML XML through automation, real-time tracking,
HTML stands for Hyper XML stands for and digital communication, enhancing
Text Markup Language. Extensible Markup efficiency over traditional methods.
Language.
HTML is static in XML is dynamic in 32. Describe the supply chain with reference to
nature. nature. Porter's Value Chain Model. (5 marks)
It was developed by It was developed by The supply chain encompasses the flow of goods,
WHATWG. Worldwide Web services, and information from suppliers to
Consortium. customers. Porter’s Value Chain Model analyzes
It is termed as a It is neither termed as a how businesses create value, aligning with supply
presentation language. presentation nor a chain activities.
programming language.
 Supply Chain Overview: Involves
Some of the tools used Some of the tools used suppliers, manufacturers, distributors,
for HTML are: Visual for XML are: Oxygen retailers, and customers. E-commerce
Studio Code, Atom, XML, XML Notepad, enhances supply chains with digital tools
Notepad++, Sublime Liquid Studio, and for tracking and coordination. Example: A
Text, and many more. many more. phone manufacturer sources components,
assembles products, and sells via Amazon.
 Porter’s Value Chain:
o Primary Activities:
31. Explain the trade cycle and its stages. (5 1. Inbound Logistics:
marks) Receiving and storing raw
The trade cycle outlines the stages of a materials (e.g., a retailer
commercial transaction, streamlined in e- stocking inventory).
commerce for efficiency. Its stages are: 2. Operations: Transforming
inputs into products (e.g.,
1. Pre-Sale: Involves market research and assembling smartphones).
product discovery. Buyers search for 3. Outbound Logistics:
products online using search engines or Distributing products to
platforms like Amazon. Example: A customers (e.g., delivery
customer searches for “laptops” and via courier).
compares brands. 4. Marketing and Sales:
2. Negotiation: Buyers and sellers agree on Promoting products (e.g.,
price, terms, and conditions. In e- online ads on Google).
commerce, this may involve automated 5. Service: Providing after-
pricing or discounts. Example: A B2B sales support (e.g.,
buyer negotiates bulk pricing on Alibaba. customer care for returns).
3. Execution: Includes order placement, o Support Activities:
payment, and delivery. E-commerce 1. Procurement: Sourcing
platforms automate this with checkout materials efficiently.
systems and logistics. Example: A 2. Technology Development:
customer orders a phone on Flipkart, pays Using software for
via UPI, and receives delivery. inventory management
4. After-Sale: Covers post-purchase support, (e.g., SAP).
returns, or feedback. E-commerce 3. Human Resource
platforms provide customer service and Management: Training staff
review systems. Example: A buyer returns for logistics.
a defective item and leaves a review. 4. Infrastructure: Maintaining
5. Settlement: Finalizes financial IT systems for e-commerce
transactions, including invoicing and platforms.
payment reconciliation, often automated in
  Application in E-commerce: Companies  Working:
like Amazon use real-time analytics to 1. Hash Creation: The sender
optimize logistics, reduce costs, and generates a hash (unique
enhance customer satisfaction, aligning fingerprint) of the message using a
supply chain efficiency with value hashing algorithm (e.g., SHA-256).
creation. 2. Encryption: The hash is encrypted
with the sender’s private key,
33. Explain the various risks involved in creating the digital signature.
electronic payment systems. (5 marks) 3. Transmission: The message and
Electronic payment systems in e-commerce face digital signature are sent to the
several risks that threaten security and reliability. receiver.
Key risks include: 4. Verification: The receiver decrypts
the signature using the sender’s
1. Fraud: Unauthorized transactions using public key, recomputes the
stolen card details or hacked accounts. message’s hash, and compares it to
Example: A hacker uses a stolen credit verify integrity.
card to shop online. Impact: Financial 5. Authentication: If hashes match,
losses for customers and merchants. the message is authentic and
2. Data Breaches: Hackers exploit unaltered.
vulnerabilities to access sensitive data  Diagram:
(e.g., card numbers, passwords). Example: Sender: [Message] → [Hash (SHA-256)]
A retailer’s database is compromised, → [Encrypt with Private Key] → Digital
exposing customer information. Impact: Signature
Loss of trust and legal penalties. [Message + Signature] → Receiver
3. Phishing: Cybercriminals create fake Receiver: [Signature] → [Decrypt with
websites or emails to steal credentials. Public Key] → [Compare Hash] → Verify
Example: A fake payment gateway tricks  Significance: Digital signatures prevent
users into entering details. Impact: fraud and build trust in e-commerce
Compromised accounts and financial theft. transactions, such as online contracts or
4. Chargebacks: Customers dispute payments.
legitimate transactions, claiming non-
delivery or fraud. Example: A buyer
disputes a delivered order, causing
merchant losses. Impact: Revenue loss and
increased operational costs.
5. System Failures: Technical glitches disrupt
payment processing. Example: A gateway
outage prevents transactions during a sale.
Impact: Lost sales and customer
dissatisfaction.
Mitigation includes using encryption (e.g.,
35. What are the features of E-commerce? (5
SSL), two-factor authentication, and
marks)
compliance with standards like PCI-DSS
E-commerce platforms offer unique features that
to ensure secure transactions.
distinguish them from traditional commerce,
enhancing efficiency and customer experience:
34. Describe the use and working of a digital
signature with a diagram. (5 marks)
1. Global Accessibility: Available 24/7 to
customers worldwide, overcoming
 Use of Digital Signature: Verifies the
geographical and time constraints.
authenticity and integrity of digital
Example: A customer in Europe shops on
messages or documents in e-commerce,
an Indian e-commerce site like Myntra.
ensuring they are from a trusted source and
2. Scalability: Easily expands to new markets
unaltered. Example: A signed invoice
without physical infrastructure. Example:
confirms a supplier’s identity in a B2B
Etsy scales from local artisans to global
transaction.
sellers.
 3. Personalization: Uses data analytics to (SCM) system for e-commerce involves
offer tailored recommendations. Example: systematic steps to optimize efficiency and
Amazon suggests products based on customer satisfaction:
browsing history.
4. Cost-Effectiveness: Reduces overhead 1. Analyze Requirements: Identify business
costs like rent and staff compared to needs, such as inventory management,
physical stores. Example: An online logistics, or supplier coordination.
bookstore avoids bookstore leasing costs. Example: An e-commerce retailer assesses
5. Automation and Integration: Automates demand forecasting needs. Outcome:
processes like payments, inventory, and Defines system scope and objectives.
order tracking, integrating with tools like 2. Select Technology: Choose SCM software
ERP. Example: Shopify automates order (e.g., SAP, Oracle NetSuite) that supports
fulfillment and updates stock levels. real-time tracking and integration.
These features make e-commerce efficient, Evaluate cloud-based vs. on-premise
customer-centric, and adaptable, driving its solutions. Example: A retailer selects
growth in retail and B2B markets. Shopify Plus for integrated SCM features.
3. Integrate with Systems: Connect SCM
36. What are E-commerce security threats? (5 with ERP, CRM, and e-commerce
marks) platforms for seamless data flow.
E-commerce platforms face various security Example: Integrate inventory data with a
threats that jeopardize data, operations, and trust. website to update stock levels. Benefit:
Key threats include: Ensures real-time visibility across
operations.
1. Malware: Malicious software steals data or 4. Automate Processes: Implement
disrupts systems. Example: Ransomware automation for order processing, shipment
locks an e-commerce site’s database, tracking, and demand forecasting.
demanding payment. Impact: Data loss and Example: Use AI to predict stock
operational downtime. requirements during festive seasons.
2. DDoS Attacks: Distributed Denial-of- Advantage: Reduces manual errors and
Service attacks flood servers with traffic, speeds up operations.
causing outages. Example: A competitor 5. Monitor and Optimize: Use analytics to
overwhelms a site during a sale. Impact: track performance metrics (e.g., delivery
Lost sales and customer frustration. times, costs). Continuously improve based
3. SQL Injection: Attackers exploit database on data insights. Example: Optimize
vulnerabilities to access or manipulate delivery routes to reduce costs. Result:
data. Example: A hacker retrieves Enhances efficiency and customer
customer details via a poorly secured form. satisfaction.
Impact: Data breaches and legal issues. A well-built SCM system, like Amazon’s,
4. Man-in-the-Middle Attacks: Intercepts ensures fast delivery, cost savings, and
data during transmission, stealing sensitive scalability in e-commerce.
information. Example: A hacker captures
credit card details during checkout. 38. Explain different E-commerce business
Impact: Financial theft and loss of trust. models with examples (B2B, B2C, C2C). (10
5. Social Engineering: Tricks users into marks)
revealing credentials via phishing or E-commerce business models define how
pretexting. Example: A fake customer businesses and consumers interact online.
service email prompts password entry.
Impact: Account compromise and fraud.  B2B (Business-to-Business):
Mitigation involves firewalls, encryption, o Involves transactions between
regular audits, and user education to businesses. Example: Alibaba
ensure robust e-commerce security. connects manufacturers with
retailers for bulk purchases.
37. Discuss steps to build a supply chain Features: Large order volumes,
management system. (5 marks) long-term contracts.
Building an effective supply chain management
 o Significance: Supports supply 3. Bank Transfers: Direct transfers
chain efficiency, enabling like NEFT, RTGS. Example: B2B
businesses to source materials or payments for bulk orders.
resell products. 4. Cryptocurrencies: Decentralized
 B2C (Business-to-Consumer): payments (e.g., Bitcoin). Example:
o Businesses sell directly to end Paying for digital services on niche
consumers. Example: Amazon sells platforms.
books, electronics to individual 5. Mobile Payments: Payments via
customers. Features: User-friendly apps or QR codes (e.g., UPI).
interfaces, fast delivery, Example: Scanning a QR code at a
promotions. store via PhonePe.
o Significance: Drives retail e-  Risks:
commerce, catering to consumer o Fraud: Stolen card details or
convenience and variety. account hacking. Example:
 C2C (Consumer-to-Consumer): Unauthorized purchases with a
o Consumers sell to other consumers stolen card.
via platforms. Example: eBay o Data Breaches: Exposure of
enables users to auction used personal/financial data. Example:
goods. Features: Platform fees, Hackers accessing a retailer’s
user ratings, peer-to-peer trust. database.
o Significance: Fosters peer-to-peer o Phishing: Fake websites/emails
marketplaces, empowering stealing credentials. Example: A
individuals to monetize assets. fake payment page capturing
 Additional Models: details.
o C2B: Consumers offer o Chargebacks: Customers disputing
services/products to businesses. legitimate transactions. Example:
Example: Upwork, where Disputing a delivered order.
freelancers bid for projects. o Regulatory Risks: Non-compliance
o B2G: Businesses sell to with laws (e.g., PCI-DSS).
government entities. Example: Example: Fines for insecure
Government e-procurement portals payment systems.
for tenders. Mitigation: Use encryption, two-
Each model leverages digital factor authentication, and secure
platforms to streamline gateways to minimize risks and
transactions. B2B focuses on bulk ensure trust in e-commerce
and efficiency, B2C on retail and transactions.
accessibility, and C2C on user-
driven markets, catering to diverse 40. What is competitive advantage? Explain
e-commerce needs. Porter's five forces model. (10 marks)

39. Explain the types of electronic payment  Competitive Advantage: A business’s

systems and the risks associated with them. (10 ability to outperform competitors by
marks) offering unique value (e.g., lower costs,
better quality). Example: Amazon’s fast
 Types: delivery differentiates it from competitors.
1. Credit/Debit Cards: Widely used,  Porter’s Five Forces Model: Analyzes
processed via gateways (e.g., Visa, industry competitiveness:
MasterCard). Example: Paying on 1. Threat of New Entrants: High if
Amazon with a credit card. entry barriers (e.g., capital,
2. Digital Wallets: Store payment regulations) are low. E-commerce
details for quick transactions (e.g., has low barriers due to online
PayPal, Google Pay). Example: platforms. Example: New e-
Using PayPal for eBay purchases. commerce startups emerge easily.
2. Bargaining Power of Buyers: High
when customers have many
 choices. Example: Price 42. Define firewall. Explain its types,
comparison sites empower buyers characteristics, and role in E-commerce. (10
to choose the cheapest option. marks)
3. Bargaining Power of Suppliers:
High if few suppliers control key  Firewall: A security system that monitors
inputs. Example: Exclusive product and controls network traffic based on
suppliers dictate terms to retailers. predefined rules.
4. Threat of Substitutes: High if  Types:
alternative solutions exist. 1. Packet-Filtering: Filters traffic
Example: Physical stores compete based on IP, port. Example: Blocks
with online retailers. unauthorized IPs.
5. Industry Rivalry: Intense when 2. Stateful Inspection: Tracks
many competitors offer similar connection states for smarter
products. Example: Amazon vs. filtering. Example: Allows
Flipkart in price wars. legitimate responses.
Application: E-commerce 3. Proxy Firewall: Acts as an
businesses use differentiation (e.g., intermediary, hiding internal
personalized recommendations) networks. Example: Protects
and cost leadership (e.g., low customer data.
prices) to gain a competitive edge, 4. Next-Generation Firewall: Includes
leveraging Porter’s model to intrusion prevention, application
strategize. control. Example: Detects
malware.
41. Explain how SSL works. Illustrate with a  Characteristics:
suitable diagram. (10 marks) o Rule-based filtering.
o Real-time monitoring.
 SSL (Secure Sockets Layer): Encrypts data o Scalable for large networks.
between a browser and server to ensure  Role in E-commerce:
secure e-commerce transactions. o Protects servers from DDoS
 Working: attacks.
1. Handshake: Browser requests a o Prevents unauthorized access to
secure connection; server sends customer data.
SSL certificate. o Ensures secure payment
2. Verification: Browser verifies processing.
certificate with a Certificate Example: Firewalls safeguard e-
Authority (CA). commerce platforms like Shopify
3. Key Exchange: Browser and server from cyber threats.
agree on a session key using
public-private key encryption. 43. Define Biometrics. Explain types of
4. Data Transfer: Data is encrypted biometric technology used in E-commerce. (10
and transmitted securely. marks)
 Diagram:
Browser ↔ [SSL Handshake: Certificate  Biometrics: Technology that identifies
Exchange] ↔ Server individuals based on unique physical or
↔ [Key Exchange: Session Key] ↔ behavioral traits.
↔ [Encrypted Data Transfer] ↔  Types in E-commerce:
 Importance: Prevents data interception, 1. Fingerprint Recognition: Scans
builds customer trust. Example: SSL fingerprints for authentication.
ensures secure payments on e-commerce Example: Mobile payments via
sites like Amazon. smartphone sensors.
2. Facial Recognition: Identifies users
via facial features. Example:
Amazon Go checkout systems.
 3. Voice Recognition: Authenticates Diagram:
via voice patterns. Example:
Banking apps verifying users.
4. Iris Scanning: Uses eye patterns for
high-security access. Example:
Secure payment apps.
 Applications:
o Secure logins for online accounts.
o Fraud prevention in payments.
o Enhances user convenience and
trust.
Example: Biometrics streamline 45. Compare HTML and XML. Write
authentication on e-commerce advantages and applications of XML in E-
platforms like Paytm. commerce. (10 marks)

44. Compare Intranet and Extranet. Explain HTML XML

VPN with diagram. (10 marks) HTML stands for XML stands for
Hyper Text Markup Extensible Markup
Intranet Extranet Language. Language.
Intranet is a tool for Whereas Extranet is a HTML is static in XML is dynamic in
sharing information tool for sharing nature. nature.
throughout the information between It was developed by It was developed by
organization. the internal members WHATWG. Worldwide Web
and external members. Consortium.
In intranet, security is Whereas in this, It is termed as a It is neither termed as
implemented through security is presentation language. a presentation nor a
a firewall. implemented through programming
a firewall in order to language.
separate the extranet HTML offers native IN XML, the objects
and the internet. object support. are expressed by
Intranet is managed by Whereas Extranet is conventions using
an organization. managed by many attributes.
organizations.
Intranet has a limited Whereas in the  Advantages of XML in E-commerce:
number of connected extranet, connected o Interoperability: Enables data
devices. devices are exchange between different
comparable with the systems.
intranet. o Customizable: Supports custom
It is accessible to only It is accessible to tags for specific needs.
the members of members of o Scalability: Handles complex data
organization. organization as well as structures.
external members with  Applications:
logins. o Product catalogs: Sharing
inventory data between suppliers
 VPN (Virtual Private Network): Creates a and retailers.
secure tunnel over a public network. o EDI: Automated transactions like
purchase orders.
o Working: Encrypts data, routes it o Integration with payment
through a VPN server, and assigns gateways: Ensures seamless data
a new IP. flow.
Example: XML enables Walmart to
exchange order data with suppliers
efficiently.