CLASS XI: CHAPTER 5 QUESTION BANK
Emerging Modes of Business | 10 Practice Sets (CBSE 2026-27)
📌 General Instructions for All Sets:
- Maximum Marks: 25 | Time Allowed: 45 Minutes
- Questions 1-5 are objective type carrying 1 mark each (MCQs & Assertion-Reasoning).
- Questions 6-7 are short answer type carrying 3 marks each (30-40 words).
- Questions 8-9 are short answer type carrying 4 marks each (50-80 words).
- Question 10 is a long answer type carrying 6 marks (100-150 words).
- Strictly adhere to the CBSE Competency/Case-Based format.
📄 PRACTICE PAPER - SET 1 (Level: Easy - Fundamental Concepts)
SECTION A (1 Mark Each)
1. The term 'e-Business' is broader than 'e-Commerce' because it includes:
[Case-Based] A popular website allows individuals to sell their used furniture directly to other individuals online.
2. This is an example of:3. Contracting out non-core business activities to third-party specialist agencies is called:
4. Assertion (A): e-Business allows a company to operate 24x7.
Reason (R): Unlike a physical store, an online website does not have opening and closing hours, providing round-the-clock convenience to customers.
Reason (R): Unlike a physical store, an online website does not have opening and closing hours, providing round-the-clock convenience to customers.
5. Assertion (A): Cash on Delivery (COD) is the most risky payment method for a buyer.
Reason (R): In COD, the buyer pays physical cash only after receiving the goods, thereby eliminating the risk of online fraud.
Reason (R): In COD, the buyer pays physical cash only after receiving the goods, thereby eliminating the risk of online fraud.
SECTION B (3 Marks Each)
6. Define 'e-Business'. Differentiate it from 'e-Commerce'.
[Case-Based] 'Alpha Automotives' places orders for spare parts directly to 'Zeta Tyres' through a secure electronic network. They never use paper invoices.
7. Identify the scope of e-Business highlighted here. State two benefits of this specific type of transaction.
SECTION C (4 Marks Each)
8. Explain any four benefits of e-Business to modern organizations.
[Case-Based] 'Global Foods' is a massive restaurant chain. They realize that managing payroll and accounting for 10,000 employees is taking up too much management time. They hire a specialized accounting firm to do this work for them.
9. Identify the concept discussed. Explain any three reasons why 'Global Foods' chose to do this.
SECTION D (6 Marks Each)
[Case-Based] Mr. Amit wants to buy an antique coin collection. He visits a specialized website where people auction old coins. He finds a seller, negotiates the price online, and buys the coins. After a few days, he wants to buy a brand new smartphone. He visits the official website of 'Samsung', selects a model, pays through a credit card, and the company delivers the phone to his house. Internally, Samsung's marketing department shares the customer data instantly with their production department using their internal corporate network to restock the phone.
10. By quoting lines from the paragraph, identify and explain the **three different scopes/categories of e-Business** (e.g., B2B, B2C, etc.) performed by Mr. Amit and the company.
📄 PRACTICE PAPER - SET 2 (Level: Moderate - Application & Analysis)
SECTION A (1 Mark Each)
1. Which of the following transactions falls under 'Intra-B Commerce'?
[Case-Based] When a customer's credit card details are stolen during an online transaction by hackers, it is an example of:
2.
3. The process of hiding information by converting it into a secret code to protect it during transmission over the internet is called:
4. Assertion (A): e-Business lacks personal touch.
Reason (R): Customers cannot physically examine, feel, or try the products (like garments or perfumes) before buying them online.
Reason (R): Customers cannot physically examine, feel, or try the products (like garments or perfumes) before buying them online.
5. Assertion (A): Traditional business is faster than e-Business in completing transactions.
Reason (R): Traditional business involves lengthy paperwork and physical movement of parties, whereas e-Business operates at the speed of a mouse click.
Reason (R): Traditional business involves lengthy paperwork and physical movement of parties, whereas e-Business operates at the speed of a mouse click.
SECTION B (3 Marks Each)
6. Differentiate between 'B2C Commerce' and 'C2C Commerce'.
[Case-Based] A famous jewelry brand is hesitant to sell its heavy gold necklaces online. They feel customers will not buy expensive jewelry without touching it, and there is a high risk of theft during courier delivery.
7. Identify the two limitations of e-Business highlighted here.
SECTION C (4 Marks Each)
8. Explain the term 'Outsourcing'. Differentiate between BPO (Business Process Outsourcing) and KPO (Knowledge Process Outsourcing).
[Case-Based] Mr. Sharma ordered a red shirt online. He paid using his debit card. However, he received a blue shirt. When he complained, the seller denied ever receiving the order, although the money was deducted from Mr. Sharma's account.
9. Identify the two types of 'Transaction Risks' involved in e-Business highlighted in this case. How can these risks be minimized?
SECTION D (6 Marks Each)
[Case-Based] 'Zeta Ltd.' is shifting its operations online. The CEO states: "By going online, we don't need a physical showroom in every city, drastically reducing our investment. Anyone from India or even abroad can visit our website, giving us unlimited geographical reach. Furthermore, we are replacing all physical files with a central cloud database. Now, our marketing head in Delhi can instantly access inventory data from our factory in Mumbai without making a single phone call, making our internal operations highly efficient."
10. By quoting lines from the paragraph, identify and explain **two benefits of e-Business** and **one specific scope of e-Business** (related to internal efficiency) adopted by 'Zeta Ltd.'
📄 PRACTICE PAPER - SET 3 (Level: Moderate-High - Nuanced Competency)
SECTION A (1 Mark Each)
1. Which of the following is NOT a benefit of Outsourcing?
[Case-Based] A bank sets up an exclusive, highly secure internal network that can only be accessed by its own employees to share customer data securely.
2. This internal network is called:3. The creation of 'Call Centers' in India by foreign companies primarily represents which concept?
4. Assertion (A): Setup cost is generally higher in traditional business compared to e-Business.
Reason (R): Traditional business requires buying/renting physical shops, interior decoration, and physical display of inventory, whereas e-Business mainly requires a website and servers.
Reason (R): Traditional business requires buying/renting physical shops, interior decoration, and physical display of inventory, whereas e-Business mainly requires a website and servers.
5. Assertion (A): Outsourcing always guarantees better quality.
Reason (R): Because the third-party service providers are specialists in that specific task (e.g., an IT firm handling IT infrastructure).
Reason (R): Because the third-party service providers are specialists in that specific task (e.g., an IT firm handling IT infrastructure).
SECTION B (3 Marks Each)
6. Differentiate between 'Traditional Business' and 'e-Business' on the basis of: (a) Physical presence, (b) Global reach, and (c) Cost of setting up.
[Case-Based] Before a customer can buy anything from 'Amazon', they must fill out a form providing their name, email, and delivery address to create an account.
7. Identify this step in online trading. What is the very next step after this?
SECTION C (4 Marks Each)
8. Explain the term 'Intra-B Commerce'. State any three activities that can be performed under this scope.
[Case-Based] A US-based hospital outsources the task of reading and diagnosing X-Rays and MRI scans to a team of highly qualified doctors sitting in India.
9. Is this an example of BPO or KPO? Give three reasons to justify why the hospital chose to outsource this task to India.
SECTION D (6 Marks Each)
[Case-Based] 'FashionHub' is an online clothing retailer. To ensure smooth operations, they follow a strict process. A customer visits the site, selects a shirt, and places it in a virtual 'shopping cart'. When the customer proceeds to checkout, they choose to pay via a secure 'Payment Gateway' using their credit card. During this payment, the data is encrypted so hackers cannot steal the card number. However, the management is still worried because recently a virus infected their servers, corrupting massive amounts of customer data.
10. Based on the case, identify and explain the **two steps of an online transaction** performed by the customer. Also, identify **one security measure** used during payment and **one risk of data storage** suffered by the company.
📄 PRACTICE PAPER - SET 4 (Level: Hard - Analytical Competency)
SECTION A (1 Mark Each)
1. Which of the following is NOT a mechanism for payment in online transactions?
[Case-Based] A company strictly handles the designing and marketing of its shoes but gives the contract of actually manufacturing the shoes to a factory in Vietnam.
2. The company is applying the concept of:3. The risk associated with the unauthorized leakage of sensitive company information to competitors by an outsourcing partner is called:
4. Assertion (A): e-Business is completely free from government intervention.
Reason (R): The IT Act, 2000 provides legal recognition to electronic transactions and prescribes punishments for cybercrimes in India.
Reason (R): The IT Act, 2000 provides legal recognition to electronic transactions and prescribes punishments for cybercrimes in India.
5. Assertion (A): E-business leads to a paperless society.
Reason (R): Use of internet significantly reduces dependence on paperwork for maintaining records, filing taxes, and issuing invoices.
Reason (R): Use of internet significantly reduces dependence on paperwork for maintaining records, filing taxes, and issuing invoices.
SECTION B (3 Marks Each)
6. Explain 'Digital Cash' and 'Net Banking' as payment mechanisms for online transactions.
[Case-Based] A multinational shoe company is heavily criticized by NGOs because it outsources its manufacturing to countries where child labor is used to cut costs.
7. Which specific limitation/concern of outsourcing is highlighted here? Explain it briefly.
SECTION C (4 Marks Each)
8. What is 'B2B Commerce'? State any three examples of B2B transactions.
[Case-Based] A virus named 'WannaCry' infiltrated a corporate network, locked all their financial files, and demanded money to unlock them.
9. Identify the specific risk of e-Business highlighted here. Suggest two measures the company can take to protect its data against such risks.
SECTION D (6 Marks Each)
[Case-Based] 'Alpha Tech' decided to outsource its customer care helpline to a third-party call center. The CEO argued that by doing this, they would not have to spend money on setting up a massive telephone exchange or hiring hundreds of operators, thereby saving millions. Secondly, since the third-party agency specialized only in handling calls, the quality of customer service would be excellent. Thirdly, because the management was now free from the headache of managing phone calls, they could focus 100% of their energy on researching and designing better software.
10. By quoting lines from the paragraph, identify and explain the **three specific benefits of Outsourcing** enjoyed by 'Alpha Tech'.
📄 PRACTICE PAPER - SET 5 (Level: Advanced - Evaluation Competency)
SECTION A (1 Mark Each)
[Case-Based] A network that allows a company's authorized suppliers to securely access its internal inventory system to check stock levels is called an:
1.
2. Outsourcing highly specialized, complex tasks requiring advanced analytical and technical skills (like legal research or data analytics) is called:
[Case-Based] A hacker successfully intercepts an online payment and diverts the funds to his own account.
3. This is a severe threat under:4. Assertion (A): e-Business helps in managing inventory effectively.
Reason (R): Through B2B commerce, a company can link its computers with its suppliers, allowing "Just-in-Time" (JIT) inventory delivery based on real-time production needs.
Reason (R): Through B2B commerce, a company can link its computers with its suppliers, allowing "Just-in-Time" (JIT) inventory delivery based on real-time production needs.
5. Assertion (A): Setting up an e-business requires a massive network of physical retail shops.
Reason (R): e-Business operates primarily through digital platforms and websites, reducing the need for physical infrastructure.
Reason (R): e-Business operates primarily through digital platforms and websites, reducing the need for physical infrastructure.
SECTION B (3 Marks Each)
6. Differentiate between BPO and KPO.
[Case-Based] An elderly man tries to buy groceries online but finds the website too confusing and fears giving his credit card details to a machine.
7. Which two limitations of e-Business (Digital Divide and Security concern) are highlighted here? Explain them briefly.
SECTION C (4 Marks Each)
8. Explain the three stages involved in an online transaction.
[Case-Based] 'Zeta Corp' outsourced its HR recruitment to an agency. A few months later, 'Zeta Corp's' confidential employee salary data was leaked to a rival company by an employee of that agency.
9. Identify the concern/limitation of outsourcing highlighted here. State two other limitations of outsourcing.
SECTION D (6 Marks Each)
[Case-Based] 'FreshMart' is a traditional grocery store facing huge losses because a rival opened a massive, 24/7 online grocery delivery app. The owner of FreshMart decides to shift his business online. He realizes that unlike his physical shop, the online store will allow customers from the entire city to buy his goods without travelling. He notes that the setup cost is very low as he only has to pay for an app developer, avoiding the massive rent of opening multiple new physical shops. Finally, he is thrilled that customers can place orders at midnight, which is impossible in his physical store that closes at 9 PM.
10. By quoting lines from the paragraph, identify and explain the **three benefits of e-Business** that motivated the owner of 'FreshMart' to shift his business online.
📄 PRACTICE PAPER - SET 6 (Level: Expert - Complex Case Studies)
SECTION A (1 Mark Each)
[Case-Based] A customer withdraws money from an ATM using a plastic card with a microchip containing his digital cash balance.
1. This card is technically known as a:2. When a host country (like India) provides cheap labor and infrastructure for outsourcing, critics in developed countries call it "exporting jobs". This leads to:
3. Assertion (A): e-Business allows for highly customized, personalized marketing.
Reason (R): Companies can track a user's browsing history and purchase habits online, allowing them to show tailored advertisements and product recommendations.
Reason (R): Companies can track a user's browsing history and purchase habits online, allowing them to show tailored advertisements and product recommendations.
4. Assertion (A): C2C commerce requires a secure third-party platform.
Reason (R): Since unknown individuals are trading with each other, platforms like eBay or PayPal act as intermediaries to guarantee payment security and dispute resolution.
Reason (R): Since unknown individuals are trading with each other, platforms like eBay or PayPal act as intermediaries to guarantee payment security and dispute resolution.
5. B2C commerce involves transactions between:
SECTION B (3 Marks Each)
6. Explain the term 'Cookies' in the context of e-business marketing.
[Case-Based] A student bought a course online but the video lectures never unlocked. The website owner claimed the transaction failed, but the student has a bank statement showing the deduction.
7. Identify the specific risk of online transactions. How can the government's IT Act help in this scenario?
SECTION C (4 Marks Each)
8. Explain any four differences between e-Business and Traditional Business.
[Case-Based] A company decides to manufacture the engine of a car itself but outsources the manufacturing of tires, seats, and glass windows to other specialized firms.
9. Identify the concept. Why does the company not manufacture everything itself? (Give three reasons).
SECTION D (6 Marks Each)
[Case-Based] 'Global Motors' operates a massive e-Business ecosystem. First, they allow normal customers to customize their cars (color, interiors) online and place orders directly to the factory. Second, their factory computer systems automatically track the inventory of steel and instantly place automated purchase orders to 'Tata Steel' whenever stock is low. Third, the factory workers use an internal portal to apply for leaves, access their payslips, and attend online training modules without visiting the HR office.
10. By quoting lines from the paragraph, identify and explain the **three different scopes of e-Business** being utilized by 'Global Motors'.
📄 PRACTICE PAPER - SET 7 (Level: Expert - Integrated Concepts)
SECTION A (1 Mark Each)
[Case-Based] The practice of registering a famous brand's name as a web domain name with the intent of selling it later to the company at a huge profit is called:
1.
2. Which of the following is a limitation of e-Business?
3. Assertion (A): E-business requires highly qualified IT professionals to maintain servers.
Reason (R): Traditional businesses require a larger physical workforce (salesmen, guards) but e-businesses rely heavily on technical experts to prevent website crashes and hacks.
Reason (R): Traditional businesses require a larger physical workforce (salesmen, guards) but e-businesses rely heavily on technical experts to prevent website crashes and hacks.
4. Assertion (A): Outsourcing restricts economic growth in developing countries.
Reason (R): Outsourcing brings massive foreign exchange, generates employment, and transfers advanced technology to developing host countries like India.
Reason (R): Outsourcing brings massive foreign exchange, generates employment, and transfers advanced technology to developing host countries like India.
5. The risk of a customer denying that they ever placed an order online is known as:
SECTION B (3 Marks Each)
6. Explain 'Phishing' and 'Hacking' as threats to e-Business.
[Case-Based] A customer pays for a laptop using his credit card online. The website uses 'Cryptography' to process the payment.
7. What is 'Cryptography'? Why is it absolutely essential for e-Commerce?
SECTION C (4 Marks Each)
8. Describe any four limitations of e-Business.
[Case-Based] A pharmaceutical company in Europe outsources its clinical trials and research data analysis to a specialized scientific firm in Bangalore, India.
9. Is this an example of BPO or KPO? Give three reasons to justify your answer by defining the specific scope of this type of outsourcing.
SECTION D (6 Marks Each)
[Case-Based] 'Elite Furniture' has a massive physical showroom in Delhi. The owner wants to launch an e-commerce website to sell pan-India. He lists down the challenges: First, customers want to sit on a sofa to feel the fabric before paying ₹50,000, which they cannot do online. Second, while an online order is placed in seconds, the physical delivery of a heavy bed to Kerala takes 10 days, frustrating customers who want instant gratification. Third, he knows his older staff members are terrified of computers and are actively protesting against the shift to digital sales.
10. By quoting lines from the text, identify and explain the **three limitations of e-Business** recognized by the owner of 'Elite Furniture'.
📄 PRACTICE PAPER - SET 8 (Level: Advanced Board Mock 1)
SECTION A (1 Mark Each)
1. The payment mechanism where a bank transfers funds from the buyer's account to the seller's account electronically is called:
[Case-Based] A firm hands over its entire customer complaint call center to a separate company based in the Philippines.
2. This is a classic example of:3. Assertion (A): e-Business supports the 'Make in India' and digital initiatives of the government.
Reason (R): E-business expands the market for Indian artisans globally and reduces cash transactions, bringing transparency to the economy.
Reason (R): E-business expands the market for Indian artisans globally and reduces cash transactions, bringing transparency to the economy.
4. Assertion (A): C2C commerce requires zero marketing.
Reason (R): C2C platforms like OLX heavily advertise their platforms to attract buyers and sellers, and individual sellers must write good product descriptions to sell their items.
Reason (R): C2C platforms like OLX heavily advertise their platforms to attract buyers and sellers, and individual sellers must write good product descriptions to sell their items.
5. Which of the following is an ethical concern regarding outsourcing to developing countries?
SECTION B (3 Marks Each)
6. Explain 'Sweat-shopping' as an ethical concern of outsourcing.
[Case-Based] An established physical bookstore decides to also sell its books online, running both models simultaneously.
7. What is this model commonly known as? (Hint: Bricks and...). State two advantages of this hybrid model.
SECTION C (4 Marks Each)
8. Discuss any four risks involved in e-Business transactions.
9. "Outsourcing is not just about cost-cutting, it's about the quest for excellence." Justify this statement with a suitable example.
SECTION D (6 Marks Each)
[Case-Based] 'Alpha Manufacturers' noticed that they were spending huge amounts of money managing their company cafeteria, transport buses for employees, and the cleaning staff. The CEO decided to outsource all three of these activities to specialized agencies. He stated, "We are a manufacturing company. Making car engines is our core strength. By handing over the cafeteria and cleaning to outside agencies, we can focus all our energy on our core strength. Furthermore, since these agencies manage cafeterias for 50 other companies, they have economies of scale and will do it much cheaper than us."
10. By quoting lines from the paragraph, identify and explain the **two specific points of importance of Outsourcing** highlighted by the CEO of 'Alpha Manufacturers'.
📄 PRACTICE PAPER - SET 9 (Level: Advanced Board Mock 2)
SECTION A (1 Mark Each)
[Case-Based] An employee accesses his company's secure server from home using a Virtual Private Network (VPN).
1. This transaction falls under:2. Setting up an e-business requires a focus on:
3. Assertion (A): e-Business eliminates middlemen.
Reason (R): Manufacturers can set up their own websites and sell directly to consumers, bypassing wholesalers and retailers, which reduces the final price.
Reason (R): Manufacturers can set up their own websites and sell directly to consumers, bypassing wholesalers and retailers, which reduces the final price.
4. Assertion (A): The digital divide restricts the growth of e-Business.
Reason (R): A large section of society in developing countries lacks access to the internet, smartphones, and digital literacy, keeping them out of the e-commerce ecosystem.
Reason (R): A large section of society in developing countries lacks access to the internet, smartphones, and digital literacy, keeping them out of the e-commerce ecosystem.
5. Which of the following provides protection against transaction risks in C2C commerce?
SECTION B (3 Marks Each)
6. Explain the term 'Digital Divide' as a limitation of e-Business.
[Case-Based] A hacker infects a company's server with a virus that erases all customer data.
7. Identify the risk. What specific IT tool should the company use to prevent viruses?
SECTION C (4 Marks Each)
8. Differentiate between 'B2C Commerce' and 'Intra-B Commerce' with two examples of each.
9. "E-business not only includes buying and selling, but also performing various business functions electronically." Justify this statement.
SECTION D (6 Marks Each)
[Case-Based] 'Bright Tutorials' used to run physical coaching centers across India. When the pandemic hit, they shifted entirely to an e-Business model. They launched a mobile app where students could buy courses (Transaction 1). They contracted Amazon Web Services (AWS) to host their massive video files on secure servers (Transaction 2). The teachers recorded lectures from home and uploaded them to the central office servers securely over the internet (Transaction 3).
10. Identify and explain the **three scopes of e-Business** (B2B, B2C, Intra-B, etc.) represented by Transaction 1, Transaction 2, and Transaction 3 in the case of 'Bright Tutorials'.
📄 PRACTICE PAPER - SET 10 (Level: Ultimate Board Challenger)
SECTION A (1 Mark Each)
1. The most significant advantage of B2B commerce for a manufacturer is:
[Case-Based] A company sets up a system where its HR department conducts video interviews to hire candidates from different countries.
2. This is an application of:3. Assertion (A): Resentment in home countries is a massive political threat to outsourcing.
Reason (R): When companies outsource jobs to developing nations like India to cut costs, it leads to unemployment in their home countries, causing political backlash and protests.
Reason (R): When companies outsource jobs to developing nations like India to cut costs, it leads to unemployment in their home countries, causing political backlash and protests.
4. Assertion (A): e-Business eliminates the need for physical delivery systems.
Reason (R): While digital products (like software or music) can be delivered online, physical products (like clothes or laptops) still require a robust physical logistics and courier network.
Reason (R): While digital products (like software or music) can be delivered online, physical products (like clothes or laptops) still require a robust physical logistics and courier network.
5. Which of the following guarantees the highest level of security for online credit card transactions?
SECTION B (3 Marks Each)
6. Explain 'Network Externalities' in the context of e-Business.
[Case-Based] A customer ordered a rare book online. He received the parcel, but it contained a block of wood. The seller vanished from the platform.
7. Identify the risk. How do platforms like Amazon protect buyers against such risks?
SECTION C (4 Marks Each)
8. Explain any four limitations of Outsourcing.
9. "E-business is reshaping the way businesses communicate with their employees." Explain the concept of Intra-B commerce to justify this statement.
SECTION D (6 Marks Each)
[Case-Based] 'Zeta Corp' is a massive global retail giant. It decided to completely shut down its physical IT department. Instead, it signed a massive 10-year contract with 'Infosys' (an Indian IT firm) to handle all its server maintenance and website coding. Zeta Corp stated this was necessary because maintaining servers was not their main business (selling retail goods was). By giving this work to Infosys, they saved 40% in costs due to India's cheaper skilled labor. However, a major scandal broke out when it was discovered that some Infosys employees had illegally accessed the private credit card details of Zeta Corp's customers.
10. Identify the **business concept/strategy** adopted by 'Zeta Corp' with 'Infosys'. By quoting lines from the paragraph, identify and explain **two benefits** and **one major limitation/risk** of this strategy highlighted in the case.
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