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E-COMMERCE
introduction to E-Commerce 2
gusiness to Business E-Commerce 12
Legal Issues 23
security Issues 29
gusiness to Consumer E-Commerce 59
£-Business \ 69
Miscellaneous ‘ ee va t fre sey) 78
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INTRODUCTION TO E-COMMERCE
Multiple Choice Type Questions
4. EBay isan example of a/ an...
[WBUT 2007, 2009 2,
a) B2C b) EDI ¢) 2c 4) 828 i
Answer: (¢)
2. The IT Act was passed by the indian Parliament in the year
BUT 2007, 2017
a) 1999 b) 2000 c) 2001
Answer: (b)
3. Convergence of content enables companies A \\ (WUT 207
a) Sophisticated information publishing & jools:
b) To use networked databases
c) To gather, process, manipulate digthibute information
d) All of these
Answer: (d) Ne
4. Which one is NOT af soma
ing e-commerce? [WBUT 2007, 2008, 2#*°
a) Economic Fo
b) Technology ai | convergence
c) Marketing tomer interaction force .
4) Force :
Answet
5. Industry Consortium is an example of
a) Independent type e-market place
¢) Purchase oriented e-market p!
Answer: (d)
qweurT 207.
b) Sales oriented e-market pao
d) Third party operated e-mart!
6. Which
7 ch ne is not included in E-commerce categories?
wou
b) C2¢
Amswer: (c) ; “cas ayers
7. In trade cycle we do not include wer!
a) in data b) invoice ©) search a
Answer: (a) re #) paymen
F
8. E-Commerce is not suitable for qweut ne
purchase of expensi
») saleipurchase of mobile phones 777 and antiques
ale/purchase of
¢) tale/purchase of branded clothes
Answer: (dl)
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ic information, electronic relationships and electronic transactions are
9.
three pillars of E-Commerce.
tne a) True b) False (WBUT 2010)
Answer: (8)
40, E-Commerce is most suitable for tangible goods.
a) True b) False gible goods. [WBUT 2010]
Answer: (b)
141. SGML stands for [WBUT 2012]
a) Standard Global Markup Language
b) Standard Generalized Markup Language S
¢) Structured Global Markup Language
d) Structured Generalized Markup Language
Answer: (b) \P
a ww [WBUT 2012]
12. Which is not an e-business model?
a) B2B b) C2B a) C2C
Answer: (c)
13. How many types of trade cycle in e-commerce? [WBUT 2014)
a)one yrs b) Two c) Three ) Four
Answer: (c) ~
14. Electronic Commerc: merce enabled by [WBUT 2015]
a) EDP era t b) MIS era technologies
¢) inwrnt aa toennoaes d) all of these
Answer: (c)
i it?
15. Which of the following card contains @ microprocessor and 2 storeegUT 01m)
8) Smart Card b) Debit Card .
©) Credit Card d) None of these
Answer: (a)
Short Answer Type Questions
[WBUT 2013]
\ What isthe difference between E-commerce & E-business?
nSwer: pting credit and
: . accepting credit an
onmece is buying and selling using a” cig eT ng commas
PSments over the net. doing banking transactions using the In
informe : ;
fe utormation using the World Wide Web and $9" 1 ..poth front and back-olTice
ae a E-business is not just about E-
By
sommerce
E-compusiness models, with the aid of
e for modern
Merce transactions, it's about re-detining ol
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CATIONS =“
siness is the overall str
technology to maximize customer valuc. b-Busine Ategy =
: siness \
cree ivan extremely important facet of T Husi
vo
2. Explain about Internet, Intranot & Extranet. (eur ay
Answers her comput
oto any other computer any
Internet is a means of connecting # computer (0 any where ina
Peters, When two coMpuLers Are connected
J vin dedicated routers and r 4 over
world via dediva I kinds of information such as text, graphics, 7
Intemet, they can send and receive
video*and computer programs ene
everal of tions the world over collat
Nor one owns Internet, although several organi a
fiber-optic cabl
functioning and development, ‘The high-speed, fir ed fas a (calies :
through which the bulk of the Internet date travels are ¢ YY eh < ae
their respective countries
An intranet comprises a restricted
J computer network, controls and usually reser,
for a single organization — like a corporation's oe ork. Intranets coon:
from dozens to thousands of people, n have their own physic)
ture, separate from the Internet Al i they tend to offer Internet acces,
some do not, typically for reasons of pri .s ity or lack of need. In comparison, »
extranct comprises a restricted comp! ctwork that connects two or more intranes
Intranets can be partially seal fram the extranets they access, allowing for:
company to reserve privalge al its intranet from the eyes of other companies. i:
addition to its strategic sity, this also has security value since extranets usually ne
on the global Inte: ual private networks. This makes extranets especialy
vulnerable to cy s when compared to intranets. To access either an intranc «
entemes 9 p ge rally needs a passcode.
Ww Long Answer Type Questions
1. a) What is E-commerce? Explain the advanta ntages ©
Ecommerce over normal commerce: WEUT 2005 S008, 201 201)
b) What is trade cycle? What are the activities a trade cycle would include?
UT , 2011, 2017
¢) Discuss, in brief, what do you mean by atectronte erates TweUT 2008, 2011
R,
What is electronic market? , s
[WBUT 2006, 2007, 2011.24"
Write short note on E-Market. of. weut 204
Answer: ts
lectronic commerce, common! 3
ying and selling of products or srvicesee oeerce OF Sommer
and other computer networks. P services over electronic systems such as the 7),
the practice of buying and welling ay E-Commerce or Electronic Commeres ve
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, the difference is that e-commerce happens over wired com
munication lines
herent Wide Web serves as the central
also happens through the use of more
or fax
wy uhromghout the globe where the World
va 6 all tracing transactions, §
quamtages of Electronic Commerce: The
y. is that it enables a bu: ;
Areoommerce, 18H siness concem or individual t
atket, Heaters to the demands of both the national and the international nerken oe
iness activities are no longer restricted by geographical houndaries, With the helo of
electronic commerce, even small enterprises can access the global market for sellin, and
porchastg products and services, Even time restrictions are nonexistent poh
Breatest and the most important advantage
conducting businesses, as ¢-commerce empowers one to execute busi ransactions 24
hours a day and even on holidays and weekends. This in turn signi increases sales
and profit
[lcctronic commerce gives the customers the opportuni
products. With the help of e-commerce, consumers
product and sometimes even find out the original maou
much cheaper price than that charged by the
convenient and time saving than convention!
the products purchased from a particular
across reviews posted by other custom
ecommerce site, which can help ma hasing decisions. For business concerns, ¢-
commerce significantly cuts n ‘cost associated with marketing, customer care.
Processing, information st sod inventory management. It reduces the time period
volved with business -enginecring, customization of products to meet the
rs, increasing productivity and customer care services.
uces the burden of infrastructure to conduct businesses and
unt of funds available for profitable investment. It also enables
care services. On the other hand, It collects and manages information
‘lated to customer behavior, which in turn helps develop and adopt an efficient
“keting and promotional strategy.
cheaper and quality
ly research on a specific
iret to purchase a product at a
Shopping online is usually more
ing. Besides these, people also come
Electronic commerce is also characterized by
led the number of people
i that the
sadvantage of ¢-commerce |S
ber of people, either due to ee
wledge of trust. A large number of people do not use the Internet 10° 2% | kindof
sl twansation, Some people simply refuse to trust the authenticity of 001%
tty | business transactions, as in the case of e-commerce a “e
sec MUONS regarding the requirement to disclose personal ad rae
sees SOMERS. Many times, the legitimacy and authentic of diftere
‘tation ofa shable commodities like
fg limitation ofecommorce is that it is not suitable for perishable commodilics
Mrchacin’ People prefer to shop in the convention y than
“iNg food products. So e-commerce is not suitable for ue
ECRE-5
Doadvantages of Electronic Commerce:
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time period required for delivering physical products can also be quite gj
of ecommene A tot of phone calls and e-mails may be required till yoy eet .
peoduets. However returning the product and getting @ refund cay bee
troublesome and time consuming than purchasing, i case Hf yOu are pot sing
particular produet eg,
Thus, om evaluating the various pros and cons of electronic commerce, we
the advantages ot e-commerce have the potential to outweigh the disadvantee” ™
strategy to address the technical issues and (9 build up customers trust in the a.)
change the present scenario and help e-commerce adapt to the changing aie
world '
b) A trade eyele is the series of exchanges, between a cut
EF and supplier,
o
place when a commercial exchange is executed. A gen
Cycle consists of
cing the terms
taking delivery
arty) and ~ payment,
ints or providing maintenance.
Pre-Sales: Finding a supplier
Lxccution: Selecting. goods, a
Settlement: Invoice df
Alter-Sales: Following,
Search. pS Pre-Sale
SWeyO\ =
We Execution /
Settiement
¢) Electronic markets are the foundation of electronic commerce. They i”
integrate advertising, product ordering, delivery of digitizable products. and
systems. An electronic marketplace (or electronic market system) is #
Organizational information system that allows the participating buyers and *
exchange information about prices and product offerings. The firm operating *
is referred to as the intermediary, which may be a market participant - a buyet ™*
an independent third party. or a multi-firm consortium (Bakos, 1991). E-marke
an electronic, of on-line, method to facilitate transactions between buyers
potentially provides support for all of the steps in the entire order ‘fulfilimes’
The business process mode! from a consumer's Perspective consists of activi",
be grouped into three phases: pre Purchase determination, purchase ©
Post purchase interaction (Kalakota and Whinston, 1996), E. Lent
nl i ). Each of these Ph
supported electronically in a complete e-market, but e-1 today genet
only the pre purchase determination activ: ess although they are moving 8
ities, y moving
purchase consummation, ies, although they are
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pescribe the advantages & disadvantages ofe nlc mark
1 jectro: et.
ase! (WBUT 2011)
advan
even small
eae Purchasing products and services
Suse 1 NEE Business asactons 3 hur aay ok sam
weekends. This in turn significantly increases sales and profit _—
glecttonic commerce gives the Customers the opportunity to look for cl and quality
products With the help of e-commerce, consumers can easily re a specific
oduct and sometimes even find out the original manufacturer t @ product at a
much cheaper price than that charged by the wholesaler. Shopii ine is usually more
convenient and time saving than conventional shopping. . people also come
across reviews posted by other customers, about the purchased from a particular
ecommerce site, which can help make purchasi
For business concerns, e-commerce signific:
marketing, customer care, processing, i
reduces the time period involved wit
products to meet the demand_of
customer care services. El
Ss.
uts down the cost associated with
storage and inventory management. It
S process re-engineering, customization of
ular customers, increasing productivity and
sommerce reduces the burden of infrastructure to
conduct businesses and oth lable for profitable
investment. It also enabl icient customer care services. On the other hand, It collects
and manages infor n related to customer behavior, which in turn helps develop and
adopt an effi eting and promotional strategy.
Disadvantages of Electronic Commerce
lectronic commerce is also characterized by some technological and inherent limitations
‘hich has restricted the number of people using this revolutionary system. One important
advantage of e-commerce is that the Internet has still not touched the lives of # great
her of people, either due to the lack of knowledge or trust. A large number of people
i
different e-commerce sites have also been questioned. like
[WBUT 2008}
aj symmetric key encryption yymmetric key encryption
¢) both (a) and (b) Pp }) Hone of these
taser: (6) ys
[WBUT 2008, 2009]
RSA algorithm deals with ~
Qe b) encryption
oe ¢ digital signature
<) EDI Pe
Answer: (b) Sm
Sich one me lated to on-line payment? [WBUT 2008, 2009]
credit card b) debit card
Je-value d) delayed payment
rer: (d)
a JUT 2008)
etal signature does not give us ») authenticity we
Confidentiality rentic e
Slintegrity d) acquisition
Neer: (a)
UR [wBuT 2010)
Trnneerte by coos
4 @ proxy server during Internet ac «
3 Solating Intranet from Extranet vide controllable fitering Of
ning packets to/from the Network and Pro
4 traffic
"one
“Wee © Of these
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POPU! performs not only a desired tas, bu
that *
a program : ;
8. Trojan Pee te malicious functions Mau a
Inc rue ) False
Answer: (a)
k, credit and debit cards, the
electronic check, tHe beng
9. While making payne teen verifies with the bank that funds are deen
authenticates (weuT 3
before purchase. b) Fi "
a) True
Answer: (a)
lementation of public-key cry
40. Pretty Good Privacy (PGP) is an imple "
et b) DES c) DSA WO 4) RPC
Answer: (a) a\"°
zs
" ep pepere plane " ~S) b) 2nd party protest” *™
1st party p' :
2) 3a party protocol Pr 4) 4th party protocol
Answer: (c) p
y 2? [WBUT 217
is nota reat to the e-commerce websites:
12. yenoting " “SiS c) Spooling d) Hacking
Answer: (c)
13. Which, curity tool available to protect e-commerce we
e ral threats? [weuT
ring b) Network Security Protocol
c) Virtual Private Network d) Tunneling
Answer: (a)
i
14. Data Encryption Standard (DES) uses qweur i
a) 32 bit encryption key b) 56 bit encryption key
¢) 64 bit encryption key
Answer: (c)
wl
15.S-HTTPis jweut
a) Secure Hypertext Transfer Protocol
b) Simple Hypertext Transfer Protocol
c) Simultaneous Hypertext Transfer Protocol
4) Server Hypertext Transfer Protocol
Answer: (a)
16. Which one of the following is a protocol for secure messaging?
a) PGP b) i
Answer: (d) PEM ¢) S/MIME 3) al
ri
wor
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unis more baled then MDS by a factor of AERCE
ft -
a ©) 107 iweur 2013, 2015)
Pr )2
a security in e-commerce we mean
1h ecting an organization's data resou UT
\ preventing disasters from happening "ce from unauthorized ocean poral
authenting Mm ges received by an o, aniz
¥ protecting Messages Sent on the Intervet trom bein
py unauthorized persons/organizations 9 Fead and understood
aul b) im c) Ill, Vv auan
aasner (a) m,
og Public key encryption method i
ystem
a}which uses a Set of public keys one for each Participant i ¢ ziNeut 2014)
b) in which each person who wants to communic: keys: a private
key known to him only and a public ke)
others to send message to him’ Y x blicized to enable
<) which uses the RSA coding system
¢) which is a standard for use in e-comm
answer: (b) WW
2 nelectronic cash payment vas [WBUT 2014)
Lacustomer withdraws ‘coins’ us denominations signed by the bank
iL the bank hi databas coins
il the bank a data pent coins
\V. the bank cannot ustomer
ain bi Mu c) A, HIV d) i,m, 1V
Aaswer: (b) Sm
ser mois sea for [weur 2014]
4) securing message transfer b) securing card transaction
‘/securing authentication d) securing overall e-commerce
Neswer: (b)
a = 1) will be satisfied?
"25460 and E = 7, then for what value of D, (ED mod Z = 1) will [WBUT 2015)
a) 33 ©) 45 d) 23
tem (4) b) 22 ) os
Qs, [weuT
"od Attack’
ns on
Nae -k’ by attackers nee ¢) switch —-d) server
=(d)
4 “wBUT™. The
he e message
iat SHIFT CIPHER with key = 17 to encrypt th [weuT 2015)
gyi be
SAL ge, b) NSLK
id d) KLMPN
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