Emerging Modes of Business Test - 24

Risk management refers to the process of systematically identifying, assessing, and mitigating risks to e-business operations. This involves analyzing potential threats, evaluating their impact and likelihood, implementing controls and safeguards to reduce risks to acceptable levels, and monitoring and reviewing risk management practices regularly.

One advantage of e-business is its ability to operate in a paperless environment. In traditional business models, a significant amount of documentation, such as invoices, contracts, and reports, is often printed on paper, leading to increased costs, storage requirements, and environmental impact. E-business leverages digital technologies to conduct transactions, communicate, and store information electronically, significantly reducing the need for paper-based documentation. 

Additionally, electronic documentation can be easily accessed, shared, and archived, enhancing efficiency and accessibility in business operations. Therefore, the paperless nature of e-business represents a notable advantage, offering cost savings, environmental benefits, and improved organizational effectiveness.

Online buying and selling of shares and other financial instruments are commonly referred to as e-Trading. This term encompasses the electronic trading activities conducted over the internet or other electronic platforms, allowing investors to trade securities without the need for physical presence in traditional trading venues like stock exchanges.

In acronyms like B2B, B2C, and C2C, B stands for "Business," referring to an entity or organization engaged in commercial activities and C stands for "Consumer" indicating the end user or purchaser of goods or services. Therefore, in B2B, B represents one business selling to another business, in B2C, B represents a business selling directly to consumers, and in C2C, C represents individuals or consumers engaging in transactions with one another. The distinction between "Business" and "Consumer" clarifies the nature of the transaction and the parties involved in each type of commerce.

A smart card is a pocket-sized card with embedded integrated circuits used for storing data securely. Common examples of smart cards include ATM cards, debit cards, credit cards, metro cards, etc. These cards contain a microprocessor chip that securely stores and processes data, enabling various functionalities such as financial transactions, access control, and secure identification. Therefore, smart card is the common name for these types of cards.

Factoring is indeed a type of outsourcing service related to financing. It involves a company selling its accounts receivable to a third-party financial institution, known as a factor, at a discount. This allows the company to receive immediate cash for its receivables, improving cash flow and reducing the risk associated with late payments or non-payment by customers.

Outsourcing and e-Commerce are acknowledged as emerging modes of business in India due to their transformative influence on economic activities. Outsourcing involves contracting specific business functions to external service providers, offering cost-effective solutions and specialized expertise. In India, it has fueled the growth of sectors such as IT, customer service, and manufacturing, enhancing competitiveness in the global market. On the other hand, e-Commerce facilitates online buying and selling of goods and services, revolutionizing traditional retail models and expanding market reach. The proliferation of digital platforms has accelerated the adoption of e-commerce, catering to diverse consumer needs and fostering entrepreneurship. Together, outsourcing and e-commerce epitomize the dynamic shift towards digitalization and globalization in India's business landscape, driving innovation and economic growth.

India has emerged as a preferred destination for Business Process Outsourcing (BPO) due to various factors, including the availability of relatively low-cost labor or cheap manpower. It highlights the cost advantage associated with the availability of skilled and affordable labor in the country. This abundant and cost-effective workforce allows companies to reduce operational expenses while maintaining or improving service quality.

B2E (Business-to-Employee) refers to transactions where a business interacts with its employees. While video conferencing is indeed used by businesses for internal communication and collaboration among employees, it's important to note that video conferencing can also be used for external communication between businesses (B2B), with customers (B2C), or even between individuals (C2C).

In the context of employees using video conferencing for work-related meetings or collaborations, it falls under the category of B2E. This usage allows employees to conduct meetings, training sessions, or discussions remotely, especially in scenarios like remote work or telecommuting.

Ransomware is a type of malware specifically designed to encrypt files on a victim's computer or network and demand a ransom payment for their decryption. This form of cyber attack can severely disrupt e-business operations, leading to data loss, financial damages, and reputational harm.