Comparison of Business, Profession and Employment: Basis Business Profession Employment How to Start? Based on entrepreneurs /owners decision Getting membership of a professional body Getting an appointment letter What is its nature? Providing goods and services to the public Rendering of personalized expert services Performing work as per service contract Qualification/Who can start? No minimum qualification Requires qualification and training in a specific field Requires qualification and training Return/What will you get? Profit Professional Fees Salary Capital/How much you need to start? Requires capital as per the size of the Business Requires limited capital No capital required Risk involved More risk Less risk No risk Transfer of Interest – Can you transfer? Is possible with some formalities Not possible Not possible Code of conduct No code of conduct is prescribed Professional code of conduct to be followed Code of conduct is prescribed by the employer to be followed Classification of Business Activities: Industry: Production or processing of goods and services. It is concerned with changing the form of the products. It gives form utility to the products. It is classified into the following: Industry (Producing or processing of Goods as well as breeding of animals)
Ans.Benefits of e – Business 1. Easy to form Very easy to start e – business because host of procedures required for traditional business are not required for e – Business 2. Requires Less Investment Both big and small business gets the benefits of internet equally. Thus even one start of small business with less investment can derive the benefit of e – Business. 3. Convenience Internet offers the convenience of 24 hours X 7 days a week with a less investment – i.e. one can access anything, anywhere, any time. 4. Speed Any business transaction can be made simply at the click of the mouse button, for e.g. Electronic Funds Transfer takes place at the speed of light 5. Global reach/access In e – Business both businessmen and consumers have no national boundaries because internet is without such boundaries. In absence of such internet, globalization may be restricted in scope and speed. 6. Movement towards paperless society Cutting thousands and thousands of trees to make paper adversely affects the environment but internet has considerably reduced the dependence on paper. Q2. Explain the limitation of e-business? Ans.Limitations of e – Business 1. Low Personal Touch Interpersonal touch between businessmen and the consumer is very important. e – Business may be high tech but the lacking interpersonal interaction is truly one of its shortcomings. 2. Delayed Delivery Sometimes order may be placed at once through internet but delivery may be delayed, which may disturb the customers. 3. Need for technological capability and competence of parties If any one party – either buyer or seller is not familiar with digital technology, e –Business becomes difficult. 4. Risk of Non-Traceability of parties Cyber personalities participate in e – Business, when any one is in remote area – Traceability may be one the biggest problem. 5. People’s Resistance In general, people resist changes and halt will be more if any organization prefers to go fully online. 6. Ethical Fallout In e – Business, unless until you have high degree of protection, any one can keep an electronic eye on your transaction, even intrude into your privacy – which is ethically incorrect. Q3. Elaborate the steps involved in online trading ? ANSOnline Transactions Involves three stages:- 1. Pre-Purchase/ Sale Stage – Including advertising and information seeking. 2. Purchase / Sale Stage – Comprising of price negotiation, closing deal & payment.