Which of the following statements best describes e-business? a. E-business includes the sale of raw materials between companies and using the Internet as an electronic network. Sales will usually be smaller dollar amounts with many sales. It is a broader concept than e-commerce. b. E-business includes using the Internet as an electronic network. Sales will usually be smaller dollar amounts with many sales. It is a broader concept than e-commerce. c. E-business includes the sale of raw materials between companies. Sales will usually be smaller dollar amounts with many sales. It is a broader concept than e-commerce. d. E-business includes the sale of raw materials between companies and using the Internet as an electronic network. It is a broader concept than e-commerce. 2 All of the FOLLOWING are true statements about e-commerce EXCEPT: a. E-commerce sites normally conduct sales 24 hours a day, 7 days a week, 12 months a year. b. E-commerce sales reduce the opportunity for fraud, theft of assets, and theft of data. c. E-commerce consumers can search for better prices and more information easily. d. E-commerce consumers may incur shipping and handling charges not incurred by retail customers.
The Correct Answer and Explanation is:
Correct Answers:
1. d. E-business includes the sale of raw materials between companies and using the Internet as an electronic network. It is a broader concept than e-commerce.
2. b. E-commerce sales reduce the opportunity for fraud, theft of assets, and theft of data.
Explanation
E-business is best defined as the integration of all business processes conducted using internet technologies. This includes not only buying and selling but also servicing customers, collaborating with business partners, and conducting internal processes such as inventory management and employee services. Option d captures this accurately by stating that e-business includes the sale of raw materials between companies and the use of the internet as a business network. E-business encompasses both B2B (business-to-business) and B2C (business-to-consumer) transactions and involves more than just commercial transactions. It goes beyond e-commerce, which is limited primarily to the buying and selling of goods and services online.
Regarding e-commerce, several advantages exist, such as around-the-clock operation, price comparison, and convenience. However, one misconception is addressed in question 2. Option b falsely states that e-commerce reduces the opportunity for fraud, theft of assets, and theft of data. In reality, e-commerce introduces additional risks such as cybersecurity threats, identity theft, and fraudulent transactions. Digital platforms can be targets for hackers who exploit vulnerabilities to gain access to sensitive customer data or manipulate payment systems. Therefore, businesses investing in e-commerce must also invest heavily in security infrastructure such as encryption, firewalls, and secure payment gateways.
The other options in question 2 correctly describe the nature of e-commerce. Online stores often operate continuously, providing customers with global access at any time. Consumers also enjoy the convenience of browsing, comparing, and purchasing products with greater informational transparency. However, this convenience may come with added expenses such as shipping and handling fees, which are generally not part of traditional retail purchases where customers pick up items themselves.
Overall, the broader nature of e-business and the security challenges of e-commerce differentiate these two concepts and emphasize the importance of understanding both in digital business strategy.
