E Commerce MCQ Quiz - Objective Question with Answer for E Commerce - Download Free PDF

The correct answer is Increase in credibility

Key Points

• Based on the options provided, all of them generally can be viewed as advantages of e-commerce.
• However, "Increase in credibility" might be the most debatable one.
• Credibility really depends on the practices of the specific e-commerce company.
• Just being e-commerce doesn't automatically increase credibility, it depends on how the e-commerce business handles customer service, privacy, security and other trust-building factors.

Therefore, if one had to choose the least likely to be a direct advantage of e-commerce among the given options, it would be: Increase in credibility.

The correct answer is B2C

 Key Points

• B2C (Business-to-Consumer): This is a business model where a business sells goods or services directly to individual consumers. This is the model usually associated with e-commerce companies such as Amazon, which provides an online platform to shop for a wide range of goods and services.

Additional Information

• B2G (Business-to-Government): This is an online business model where businesses sell goods and/or services to governments. This typically involves processes like tenders and contracts. Examples of B2G businesses might include firms that provide infrastructure development, consulting services, or IT solutions specifically tailored for government agencies.
• B2B (Business-to-Business): This model refers to transactions between businesses. This can involve a manufacturer selling to a wholesaler, or a wholesaler selling to a retailer, etc. An example might be a website like Alibaba.com, which connects manufacturers and wholesalers around the world.
• C2B (Consumer-to-Business): This is a business model where consumers (individuals) offer their own goods or services for business purposes. This could involve a freelance designer offering their design services to businesses, or a customer providing a service to a company. An example might be an influencer offering their influence to promote a business's product or service.

The correct answer is: option 4: C2D

Concept:

There are four widely recognized main types of e-commerce models:

1. B2B (Business to Business): Transactions between businesses (e.g., manufacturer to wholesaler).
2. B2C (Business to Consumer): Businesses sell directly to consumers (e.g., Amazon, Flipkart).
3. C2C (Consumer to Consumer): Consumers sell to other consumers (e.g., OLX, eBay).
4. C2B (Consumer to Business): Individuals sell products or offer services to businesses (e.g., freelancers).

Option 4 – C2D (Consumer to Developer): ❌ Not a valid or recognized e-commerce model.

Hence, the correct answer is: option 4: C2D

The correct answer is: option 2: B2Cs

Concept:

Flipkart, Tatacliq, Amazon, etc., are examples of **Business-to-Consumer (B2C)** e-Commerce platforms. In this model, businesses sell products or services directly to end consumers through digital platforms.

B2C (Business to Consumer):

• Businesses (like Flipkart, Tatacliq) act as sellers
• Consumers purchase goods directly from the business
• Most common form of e-commerce

Explanation of options:

• Option 1 – B2Bs: ❌ Business to Business (e.g., Alibaba for wholesale)
• Option 2 – B2Cs: ✅ Correct. Flipkart and Tatacliq sell directly to consumers.
• Option 3 – C2Bs: ❌ Consumer to Business (e.g., freelancing platforms where individuals offer services to businesses)
• Option 4 – C2Cs: ❌ Consumer to Consumer (e.g., OLX, eBay where individuals sell to each other)

Hence, the correct answer is: option 2: B2Cs

Option 1:

• ERP stands for Enterprise Resource planning and it refers to software and system used to plan and manage all core supply chain, services, financial and other processes of an organization.

Option 2:

• ERP acts as a planning backbone for a company’s core business processes so option 2 is correct statement.

Option 3:

• ERP is a software architecture that facilitates the flow of information among the different functions within an enterprise. Similarly, ERP facilitates information sharing across organizational units and geographical location so Option 3 is correct statement.

Option 4:

• ERP is the integrated management of core business processes but in the context of modern business, ERP generally refers to the business software platform acting as the hub of a company’s operation so option 4 statement is correct.

The correct answer is Preservation.

Key Points

• Preservation is not considered to be one of the three phases of e-commerce.
  • E-commerce or electronic commerce is the trading of goods and services on the internet.
  • It operates in different types of market segments and can be conducted over computers, tablets, smartphones, and other smart devices.
  • E-commerce operates in several market segments including business-to-business, business-to-consumer, consumer-to-consumer, and consumer-to-business.
• Preservation
  • Preservation means saving something in its current form and not letting it change.
  • E-commerce by its very nature is changing and quickly adapting to new challenges and technology, hence, it is not considered to be one of the three phases of e-commerce.

Additional Information 

• Reinvention
  • Companies have to keep re-inventing themselves in order to cater to the changing needs of the customers.
  • It may include introducing new payment methods, new user interfaces, etc.
• Globalization
  • E-Commerce has been one of the primary technological drivers of globalization.
  • With the advent of e-commerce, it has become much easier for people to look at the product of X country and order it in Y country.
  • E-Commerce has provided a window for everyone to see products/services of any company in any country and order anywhere.
• Commercialization ​
  • Commercialization is the process of bringing new products or services to market.
  • It has become easier for companies to track the needs and views of customers.
  • The companies can introduce new products/services when there is enough demand for them.
  • Now, we do see a range of products being introduced everywhere.

The correct answer is Flipkart.

Key Points

• Flipkart has released Shopsy, an app that allows Indians to create their own online companies for free.
• With the support of Shopsy, Flipkart hopes to empower over 25 million online entrepreneurs by 2023.
• Shopsy users will be able to share catalogues from Flipkart vendors covering a vast range of 15 crore products.
• These users can distribute catalogues to potential customers via popular social media and messaging apps, place orders on their behalf, and profit from the sales.
• Fashion, cosmetics, mobiles, technology, and home are among the topics covered, with potential buyers being reached through popular social media and messaging apps.
• Shopsy's goal is to make e-commerce easier for communities and third-party channels where users spend time and trust.
• This platform aims at providing new to digital commerce consumers access to products by simplifying the process through interactions with a trusted person.

• Flipkart headquarters: Bengaluru, Karnataka.
• Flipkart CEO: Kalyan Krishnamurthy.

The correct answer is C2C.

Key Points

• C2C (Consumer-to-Consumer) e-commerce involves transactions between consumers, typically facilitated by a third-party platform. Online auctions are a common example of C2C e-commerce.
• In C2C e-commerce, consumers sell directly to other consumers. Examples include platforms like eBay where individuals can auction items to other individuals.

Additional Information

• B2B (Business-to-Business) refers to transactions between businesses, such as a manufacturer and a wholesaler, or a wholesaler and a retailer. It is not typically associated with auctions.
• B2C (Business-to-Consumer) involves businesses selling products or services directly to consumers. Examples include online retailers like Amazon. While B2C can involve sales, it is not primarily known for auctions.
• C2B (Consumer-to-Business) is where individuals sell products or offer services to businesses. Examples include freelance platforms where individuals offer their services to companies. This model does not typically involve auctions.

The correct answer is e-commerce.

Key Points

• e-commerce refers to the process of buying and selling products or services, or transferring funds, over an electronic network, primarily the internet.
• This involves a wide range of activities including online shopping, electronic payments, internet banking, online auctions, and more.
• e-commerce has revolutionized the way businesses operate, providing a platform for global reach and convenience for customers.
• Examples of e-commerce platforms include Amazon, eBay, Alibaba, and Shopify.

Additional Information

• e-mail: This is a method of exchanging messages between people using electronic devices. While it is a significant part of communication in e-commerce, it is not the process of buying or selling itself.
• e-book: An electronic version of a printed book that can be read on a computer or handheld device designed specifically for this purpose. It is a product that can be bought or sold through e-commerce.
• e-learning: This involves the use of electronic media and information and communication technologies (ICT) in education. While related to online activities, it is not directly related to the buying and selling of goods or services.

The correct answer is Cash on delivery.

Key Points

• Cash on delivery (COD) is a method of payment where the recipient pays for the goods at the time of delivery rather than paying in advance through electronic means.
• COD is not considered an e-Payment because it involves physical cash transactions rather than electronic transactions.

Additional Information

• e-Cheque: An e-Cheque is an electronic version of a paper cheque. It is a digital representation of a traditional cheque and is processed electronically.
• Debit card: A debit card is a payment card that deducts money directly from a consumer’s checking account to pay for a purchase. It is a form of e-Payment as transactions are processed electronically.
• Credit card: A credit card is a payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt. This is also a form of e-Payment due to electronic processing.

The correct answer is All of the above

Key PointsAll the options mentioned are critical for successful B2B e-commerce:

• World Wide Web: This provides the platform where B2B transactions can take place. It is a communication tool that allows businesses to connect with each other, advertise their products and services, and execute transactions.
• Secure payment services: Given the size and significance of monetary transactions in B2B e-commerce, secure payment services are essential. It helps to ensure that funds are transferred safely from the buyer to the seller.
• Secure electronic communication link: This is vital for protecting sensitive business and customer data that is shared during the course of B2B e-commerce transactions. It helps prevent data breaches, ensuring the confidence of businesses in the e-commerce platform.

The correct answer is A, B, C, D and E.

Key Points The appropriate answer is:

A. Republic Day
B. Independence Day
C. Black Friday
D. Cyber Monday
E. Akshaya Tritiya

E-commerce and large retailers in India often bet big on mega consumption events on all of these days. Let's briefly discuss each of them:

A. Republic Day:
Republic Day, celebrated on January 26th, is a national holiday in India commemorating the adoption of the Indian Constitution. It has also become a popular shopping event, with e-commerce platforms and retailers offering special discounts and promotions to attract customers.

B. Independence Day:
Independence Day, celebrated on August 15th, marks India's independence from British colonial rule. Similar to Republic Day, it has become an occasion for e-commerce platforms and retailers to offer exclusive deals and discounts to boost sales.

C. Black Friday:
Black Friday is a shopping event that originated in the United States, occurring on the day following Thanksgiving Day. In recent years, it has gained popularity globally, including in India. E-commerce platforms and large retailers in India participate in Black Friday by offering significant discounts and special promotions to customers.

D. Cyber Monday:
Cyber Monday follows the Black Friday shopping extravaganza and is focused on online sales. It takes place on the Monday following Thanksgiving Day. E-commerce platforms and retailers in India also take part in Cyber Monday, providing attractive deals and discounts to online shoppers.

E. Akshaya Tritiya:
Akshaya Tritiya is a Hindu festival celebrated in India, usually in April or May. It is considered an auspicious day for making new purchases, particularly gold and jewelry. E-commerce platforms and large retailers capitalize on this occasion by offering special discounts and promotions on gold and other valuable items.

EOQ  (Economic Order Quantity).

• It is the ideal order quantity a company should purchase to minimize the inventory costs such as order cost, shortage cost, etc.  EOQ formula is used to reduce inventory costs.  
• EOQ means the optimum amount of items that should be ordered at any point of time. It is a model that is used to calculate the optimal quantity that can be purchased to minimize the cost of both the carrying inventory and processing of purchase orders. 

The mathematical formula for EOQ:

EOQ = √(2×A×O)/C

where EOQ = economic order quantity

A = annual demand in units

O = cost incurred to place a single order

C = carrying cost per unit per year

The correct answer is Business done electronically.

Key Points

• eCommerce (electronic commerce) refers to conducting business transactions electronically over the internet, including the sale of products, services, and other business activities.
• Sale of product: While eCommerce includes the sale of products, it also encompasses services and other business transactions, so this option is too narrow.
• Banking business: Banking is part of eCommerce but doesn't cover the full scope.
• Business transaction: While eCommerce involves business transactions, the key aspect is that it's done electronically.

So, the most complete definition of eCommerce is Business done electronically.

The correct answer is An e-business company.

Key Points

 An e-business company:

• ​It is a company engaged in online marketing of its products.
• It conducts business over a computer-mediated network.
• It includes buying and selling of goods or services using commercial transactions conducted electronically.
• It operates in several market segments including business-to-business, business-to-consumer, consumer-to-consumer, and consumer-to-business.
• Examples- Amazon, FlipKart, eBay, and Myntra.
• Advantages of Ecommerce
  • Convenience
  • Increased selection
  • Potentially lower start-up cost
  • International sales
  • Easier to retarget customers