E-Commerce ( DCOM ) 6th Sem

2078/2079
Question Paper Solution.
Compile by Arjun Chy

Website :- www.arjun00.com.np

1. Explain e-commerce with an example. What are the

categories of e-commerce? Explain in brief
➢ E-commerce, or electronic commerce, refers to the buying and selling of
goods and services online. It involves the use of the internet and digital
technologies to facilitate transactions between buyers and sellers. E-
commerce has become increasingly popular in recent years due to the
convenience and accessibility it offers.

➢ Here's an example to illustrate how e-commerce works:

➢ Let's say you want to buy a new laptop. You can visit an e-commerce
website, such as Amazon or Best Buy, and browse through the available
laptops. Once you find the one you want, you can add it to your shopping
cart and proceed to checkout. At checkout, you will be prompted to enter
your payment and shipping information. Once you confirm your order, the
laptop will be shipped to your designated address.

➢ The Different categories of e-commerce are :-

▪ Business-to-consumer (B2C): This refers to the sale of products or services

from businesses to individual consumers. Examples of B2C e-commerce
include online retailers such as Amazon and clothing stores that sell their
products online.
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 ▪ Business-to-business (B2B): This involves the sale of products or services
between businesses. B2B e-commerce is commonly used by suppliers and
manufacturers to conduct transactions with other businesses.

▪ Consumer-to-consumer (C2C): This involves the sale of products or services

between individual consumers. Examples of C2C e-commerce include online
marketplaces such as eBay and Craigslist.

▪ Consumer-to-business (C2B): This refers to situations where individual

consumers sell products or services to businesses. C2B e-commerce is
common in industries such as freelancing and consulting, where individuals
offer their services to businesses.

▪ Business-to-government (B2G): This involves the sale of products or services

from businesses to government entities. Examples of B2G e-commerce
include government procurement processes and online tax filing systems.

▪ Government-to-business (G2B): This refers to situations where government

entities sell products or services to businesses. G2B e-commerce is commonly
used in industries such as defense and public safety.

2. What is consumer to consumer (C2C) e-commerce? Differentiate

between B2B and B2C e-commerce.
➢ Consumer-to-consumer (C2C) e-commerce refers to the buying and selling
of products or services between individual consumers. This type of e-
commerce typically takes place on online marketplaces or platforms, such
as eBay or Etsy, where individuals can list items for sale and other
individuals can purchase them. C2C e-commerce can also occur through
social media platforms, where individuals can sell items to their followers
or friends.

➢ The Between B2B and B2C e-commerce are:-

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 Category Business-to-business (B2B) Business-to-consumer (B2C)
E-commerce E-commerce
Definition ▪ Sale of products or ▪ Sale of products or services
services between from businesses to
businesses individual consumers
Target ▪ Other businesses ▪ Individual consumers
audience
Volume of ▪ High volume, large ▪ Low to high volume,
sales transactions smaller transactions

Marketing ▪ Relationship-based, ▪ Mass marketing, customer-

targeted marketing oriented
Product ▪ Specialized products or ▪ Generalized products or
range services services
Pricing ▪ Negotiated pricing and ▪ Fixed pricing, discounts and
contracts promotions

Customer ▪ Account managers and ▪ Customer service

service support teams representatives
Sales cycle ▪ Longer sales cycle, with ▪ Shorter sales cycle, with
multiple decision- fewer decision-makers
makers
Payment ▪ Invoicing, purchase ▪ Credit/debit cards, digital
methods orders, credit terms wallets, PayPal

Examples ▪ Supplier selling to ▪ Online retailer selling to

manufacturer individual consumers

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3. What is I-way? Describe the components of I-way. What are the
types of software agent?
➢ I-way, or Information Highway, refers to the global network of
interconnected computer networks that make up the internet. It is a vast,
complex system that enables the exchange of data and communication
across the world. The development of the I-way has revolutionized the
way we access information, communicate with each other, and conduct
business.

➢ The components of the I-way include:

▪ Network access equipment: This includes all the hardware and software
necessary for consumers to access the internet, such as computers, modems,
routers, and web browsers. Without this equipment, consumers would not be
able to connect to the internet and access online services.

▪ Access media: Access media refers to the physical infrastructure that enables
data transmission between devices. This includes wired technologies like cable
and DSL, as well as wireless technologies like Wi-Fi and cellular networks.

▪ Global information distribution networks: These are the large-scale networks

that connect devices and users across the world, such as the internet and
satellite networks. These networks provide the backbone for global
communication and facilitate the transmission of vast amounts of data and
information.

➢ Here are some more detailed explanations for each type of software agent:-

▪ Interface agent: This type of agent is designed to provide a user-friendly

interface for software systems. Interface agents can be used to simplify
complex user interfaces, help users navigate through complex software
systems, and customize software settings based on user preferences.

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▪ Collaborative agent: Collaborative agents enable communication and
collaboration between multiple agents and users in a shared environment.
These agents can be used in group decision-making processes, where multiple
agents must collaborate to solve complex problems or make decisions based
on shared data.
▪ Information agent: Information agents are used to collect and organize
information from different sources and provide relevant information to users.
These agents can be used in web search engines, where they crawl the
internet to find relevant information based on user queries.

▪ Reactive agent: Reactive agents are designed to respond to external events

and changes in the environment. These agents can be used in robotics, where
they respond to changes in their environment to perform tasks such as object
recognition or obstacle avoidance.

▪ Hybrid agent: Hybrid agents combine different types of agents to perform

complex tasks and handle multiple functions. For example, a hybrid agent may
combine a reactive agent and a learning agent to perform complex tasks such
as autonomous driving.

▪ Mobile agent: Mobile agents can move from one location to another,
performing tasks and gathering data as they go. These agents are commonly
used in IoT (Internet of Things) applications, where they collect data from
multiple sensors located in different locations.

▪ Smart agent: Smart agents use advanced AI techniques such as natural

language processing and machine learning to learn from user behavior and
adapt to changing environments. These agents are commonly used in
chatbots, personal assistants, and other applications where human-like
interaction is required.

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 ▪ Corporate agent: Corporate agents are used in business environments to automate
tasks and processes, such as customer service and supply chain management. These
agents can be used to automate repetitive tasks, such as data entry or inventory
management, to improve efficiency and reduce costs.

▪ Autonomous agent: Autonomous agents operate independently without human

intervention and make decisions based on pre-defined rules or algorithms. These
agents are commonly used in robotics, where they perform tasks such as
autonomous driving or industrial automation.

▪ Learning agent: Learning agents are designed to learn from user interactions and
improve their performance over time through experience. These agents are
commonly used in recommendation systems, where they learn from user behavior
to provide personalized recommendations for products or services.

4. Define EDI. What are the applications of EDI. Discuss briefly on the
security and privacy issues of EDI.
➢ Electronic Data Interchange (EDI) is the electronic exchange of business
documents between trading partners in a standardized format. EDI allows
companies to exchange business documents, such as purchase orders,
invoices, and shipping notices, in a more efficient and accurate manner,
reducing the need for paper-based processes and manual data entry.

➢ The application of EDI are :-

▪ Industry and Commerce: EDI is used for exchanging business documents such
as purchase orders, invoices, and shipping notices between trading partners.
This can streamline the supply chain and reduce errors and costs associated
with manual document processing.

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 ▪ Banking, Financial Services, and Insurance: EDI is used for electronic funds
transfer, credit card transactions, and insurance claims processing. This can
improve efficiency and reduce fraud.

▪ Transport and Customs: EDI is used for exchanging shipment information,

customs declarations, and other logistics-related documents between trading
partners. This can speed up the movement of goods and reduce paperwork.

▪ Retail Industry: EDI is used for exchanging product and pricing information,
purchase orders, and invoices between retailers and suppliers. This can help
retailers manage inventory and reduce costs.

▪ Automobile Sector: EDI is used for exchanging orders, shipping notices, and
invoices between automakers and suppliers. This can help manage complex
supply chains and improve efficiency.

▪ Manufacturing Sector: EDI is used for exchanging orders, shipping notices,

and invoices between manufacturers and suppliers. This can help manage the
production process and reduce costs.

▪ Health Care Sector: EDI is used for exchanging medical claims, billing, and
other patient-related information between health care providers, insurers,
and government agencies. This can improve the accuracy and speed of claims
processing and reduce paperwork.

➢ Security and privacy issues are critical concerns when it comes to EDI. There are
several security measures that can be implemented to protect EDI transactions,
including encryption of data, secure authentication, and access controls. Privacy
issues can arise when sensitive data is being exchanged, such as patient health
information or financial data. Organizations must ensure that they comply with
data protection regulations and follow best practices for securing and protecting
sensitive data during EDI transactions.
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5. Explain the m-commerce architecture. List out any five
advantages of m-commerce.
➢ M-commerce architecture refers to the framework and
components that are necessary for conducting mobile commerce.
The main components of the M-commerce architecture are:

▪ Mobile Devices: The smartphones and tablets used by customers to

access m-commerce services.

▪ Wireless Networks: The networks used to connect mobile devices to the

internet, such as Wi-Fi, cellular networks, and satellite networks.

▪ Mobile Applications: The software applications that are specifically

designed for use on mobile devices, such as mobile banking apps, e-
commerce apps, and mobile payment apps.

▪ Middleware: The software that connects the mobile devices to the back-
end systems of the service provider, such as the payment gateway,
inventory management system, and order fulfillment system.

▪ Back-end Systems: The servers, databases, and other infrastructure used

by the service provider to manage the m-commerce system.

➢ Advantages of M-commerce:-

▪ Convenience: M-commerce provides a convenient way for

customers to shop and conduct transactions anytime and anywhere
using their mobile devices.
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 ▪ Wide Reach: M-commerce has a wide reach, as a large part of the
world's population has access to mobile devices.

▪ Personalization: M-commerce enables businesses to offer

personalized and targeted promotions to customers based on their
preferences and purchase history.

▪ Cost-effective: M-commerce can be cost-effective for businesses, as it

can reduce transaction costs, carrying costs, and order processing
costs.

▪ Competitive Advantage: Businesses that adopt m-commerce can gain

a competitive advantage by providing customers with a more
convenient and personalized shopping experience.

6. Explain digital signature and digital certificate. Describe the

security issues in e-commerce
➢A digital signature is a cryptographic technique that is used to verify the
authenticity of a digital document or message. It is a unique code that is
attached to the document or message, and it helps to prove the
ownership of the digital certificate. A digital signature is created using a
hash function, which generates a unique value for the document or
message. This value is then encrypted using a private key and attached to
the document or message. When the recipient receives the document or
message, they can use the sender's public key to decrypt the digital
signature and verify the authenticity of the document or message.

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➢ A digital certificate is a digital document that is issued by a trusted third
party, known as a Certificate Authority (CA). The digital certificate
contains information about the identity of the certificate holder, such as
their name, email address, and public key. The certificate also contains a
digital signature from the CA, which verifies the authenticity of the
certificate. When a user wants to verify the authenticity of a digital
certificate, they can check the CA's digital signature to ensure that the
certificate is valid and has not been tampered with.

➢ E-commerce has revolutionized the way people conduct business, but it also
brings several security challenges. The following are some of the security
issues in e-commerce:

▪ Data breaches: E-commerce sites often store sensitive customer information,

such as credit card details, names, and addresses. These sites are a prime
target for cybercriminals looking to steal such information.

▪ Phishing scams: Phishing is a type of scam where attackers send fraudulent

emails to trick people into providing personal and financial information. E-
commerce sites are often the targets of such scams.

▪ Malware attacks: Malware is software designed to cause harm to computer

systems, networks, or devices. Malware attacks on e-commerce sites can steal
sensitive customer information, such as credit card details.

▪ Payment fraud: Payment fraud is another major concern in e-commerce.

Cybercriminals can use stolen credit card details or create fake accounts to
make fraudulent purchases.

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 ▪ Lack of trust: E-commerce businesses need to establish trust with their
customers. Customers need to feel secure when making purchases online. A
lack of trust can harm the business's reputation and lead to reduced sales.

▪ Cybersecurity skills gap: E-commerce businesses need cybersecurity experts

to ensure their systems are secure. However, there is a significant skills gap in
this area, making it difficult for businesses to find the right talent.

▪ Regulatory compliance: E-commerce businesses must comply with various

regulations related to data protection and privacy. Non-compliance can result
in hefty fines and legal action.

➢ In conclusion, e-commerce businesses must address these security issues to

protect their customers' information and maintain their reputation. This can
be achieved by implementing security measures such as encryption, two-
factor authentication, and regular security audits.

7. What is cyber law? describe the importance of cyber law. Write

down the characteristics of successful entrepreneur.
➢ Cyber law, also known as Internet law, is a branch of law that deals with
the legal issues related to the Internet, computers, software, hardware,
and other digital systems. It governs the use of the Internet and the rights
and responsibilities of individuals and organizations in cyberspace.

➢ The importance of cyber law lies in the fact that it provides legal
frameworks and regulations for online activities, such as e-commerce,
online privacy, intellectual property, cybercrime, and more. Cyber law
helps to protect individuals and organizations from cyber threats and to
ensure that they can conduct their online activities safely and securely. It
also helps to promote trust and confidence in the use of the Internet and
other digital technologies.
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➢ Characteristics of a successful entrepreneur:

▪ Visionary: A successful entrepreneur has a clear vision of what they

want to achieve and the steps they need to take to get there.

▪ Risk-taking: Entrepreneurs are willing to take calculated risks to achieve

their goals and are not afraid of failure.

▪ Creativity: Successful entrepreneurs are innovative and creative, able to

think outside the box to develop new ideas and solutions.

▪ Passion: They are passionate about their work and believe in their
ideas, which drives their motivation and persistence.

▪ Adaptability: Entrepreneurs are flexible and adaptable, able to change

their approach and strategies as needed in response to challenges and
market conditions.

▪ Resilience: They have a strong sense of resilience and are able to

bounce back from setbacks and failures.

▪ Leadership: Successful entrepreneurs are able to lead and inspire

others, building strong teams and partnerships to achieve their goals.

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8. What do you mean by online marketing? Explain. Describe
the challenges of online marketing.
➢ Online marketing refers to the set of strategies and techniques used to
promote products or services on the internet. This type of marketing uses
various digital channels such as social media, email, search engines,
websites, and mobile apps to reach and engage with potential customers.

➢ The main advantage of online marketing is its ability to reach a vast

audience in a cost-effective manner. Online marketing allows businesses
to target their marketing efforts more effectively and measure the
effectiveness of their campaigns in real-time. This makes it easier for
businesses to adjust their marketing strategies based on the data and
feedback they receive from their customers.

➢ However, online marketing also poses several challenges,

including:

▪ Increased competition: The internet has made it easier for businesses to

enter the market, leading to increased competition. It can be challenging
to stand out from the competition and get noticed by potential customers.

▪ Information overload: The abundance of information available online

makes it difficult for businesses to grab the attention of potential
customers. It is essential to create content that is engaging and relevant to
the target audience.

▪ Changing technology: The fast pace of technological change means that

businesses must continually adapt their online marketing strategies to
keep up with new trends and platforms.
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 ▪ Security and privacy concerns: Online marketing requires the collection
and use of customer data, which can lead to privacy and security
concerns if not handled properly.

▪ Ad-blocking software: Many internet users use ad-blocking software to

avoid online ads, making it harder for businesses to reach their target
audience.

▪ Metrics and analysis: Measuring the effectiveness of online marketing

campaigns requires a good understanding of metrics and data analysis.
This can be challenging for businesses without the necessary expertise or
resources.
9. Write short notes on: (Any Two)
i) VPN
➢ A virtual private network (VPN) is a technology that enables users to send and
receive data across shared or public networks as if their computing devices were
directly connected to a private network. It extends a private network across a
public network, providing benefits such as increased functionality, security, and
management of the private network. VPNs allow remote workers to access
resources that are otherwise inaccessible on the public network. Encryption is
commonly used to ensure data privacy and security.

VPNs can be created using dedicated circuits or tunneling protocols over existing
networks. They can be accessed remotely from the public internet, providing
some of the benefits of a wide area network (WAN). Users can access resources
available within the private network from a remote location, making VPNs an
essential tool for remote workers and businesses with multiple locations.
However, VPNs also have security and privacy concerns, such as the risk of data
breaches and the potential for unauthorized access.

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ii) Online Banking
➢ Online banking, also known as Internet banking or web banking, is a service
offered by virtually every banking institution that allows customers to
conduct financial transactions through the internet. With online banking,
users can access almost every service available through a local branch,
including deposits, transfers, and online bill payments.

To access online banking, clients need a computer or other device, an

internet connection, and a bank or debit card. They must also register for
their bank's online banking service and create a password. Once registered,
they can use the service to conduct all of their banking activities from
anywhere with an internet connection, 24 hours a day.

One of the main advantages of online banking is its speed and efficiency.
Users can transfer funds, pay bills, and manage their accounts in real-time,
without having to visit a local branch. Additionally, online banking allows
customers to monitor their accounts regularly, which can help them
identify and prevent fraudulent activity.

However, online banking also poses some risks and challenges. Users must
take steps to protect their passwords and personal information, as cyber
criminals can attempt to steal this data through phishing scams or other
methods. Banks must also maintain robust security measures to prevent
data breaches and other cyber attacks. Despite these challenges, online
banking remains a convenient and popular way for customers to manage
their finances.

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iii) Payment gateway
➢ A payment gateway is a crucial component of any online business that
accepts payments. It is essentially a software application that enables
secure and efficient online transactions. A payment gateway acts as a
bridge between a customer's financial institution and the merchant's
website or online store. When a customer enters their payment
information, the payment gateway encrypts the information and securely
transmits it to the financial institution for verification and processing.

Payment gateways can process various payment methods, including credit

and debit cards, e-wallets, and direct bank transfers. They are usually
integrated with e-commerce platforms, allowing merchants to easily accept
payments online. Payment gateways also provide features such as fraud
protection, chargeback management, and recurring payments.

The process of selecting and integrating a payment gateway can be a

challenge for businesses. They need to consider factors such as security,
reliability, transaction fees, and compatibility with their e-commerce
platform. It's important to choose a payment gateway that is compliant
with industry standards and regulations to ensure the safety of customers'
sensitive information.

Overall, a payment gateway plays a critical role in facilitating online

payments and ensuring the security and reliability of transactions for both
customers and merchants.

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iv) Firewall
➢ A Firewall is a network security device that acts as a barrier between a
private internal network and the public Internet. It monitors and filters
incoming and outgoing network traffic based on an organization's
established security policies. The main purpose of a firewall is to prevent
unauthorized access to or from a private network.

Firewalls can be hardware or software-based and use a variety of

techniques to control traffic. These techniques include packet filtering,
proxy service, and stateful inspection. Packet filtering examines the header
of each packet of data and determines whether to allow or deny the
packet based on rules that have been established. Proxy services act as
intermediaries between two systems and can prevent direct connections
from being established between them. Stateful inspection uses a
combination of packet filtering and proxy services to monitor the state of
active connections and determine whether traffic should be allowed or
denied.

The importance of firewalls cannot be overstated in today's connected

world. They help protect against a wide range of threats such as hackers,
viruses, and malware. Without a firewall, an organization's network is
vulnerable to attacks and sensitive data can be compromised. Therefore, it
is crucial for organizations to implement a strong firewall system and
regularly update it to ensure maximum security.

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 E-Commerce ( DCOM ) 6th Sem
2077
Question Paper Solution.
Compile by Arjun Chy

Website :- www.arjun00.com.np

1. Elaborate the concept of e-commerce with an architectural

framework. Also list out the pros and cons of e-commerce.

➢ E-commerce, also known as electronic commerce, refers to the buying and

selling of products and services over the internet. The concept of e-
commerce can be further elaborated using the architectural framework,
which consists of several layers:

▪ Presentation Layer: This layer involves the user interface of the e-commerce
website, including the design, layout, and navigation. It is responsible for displaying
the products and services, providing search and filter options, and managing the
shopping cart and checkout process.

▪ Application Layer: This layer involves the functionality and business logic of the e-
commerce website, including product catalogs, order management, payment
processing, and shipping logistics.

▪ Data Layer: This layer involves the storage and management of data, including
customer information, order history, and product inventory. It also includes the
integration with external systems, such as payment gateways and shipping
providers.

▪ Infrastructure Layer: This layer involves the hardware and software components
required to run the e-commerce website, including servers, databases, network
infrastructure, and security measures.
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➢ Pros of E-commerce:

▪ Convenience: E-commerce allows customers to shop from anywhere and at

any time, making it more convenient than traditional brick-and-mortar stores.

▪ Greater reach: E-commerce enables businesses to reach a wider audience,

including customers who are geographically dispersed.

▪ Lower costs: E-commerce eliminates the need for physical stores, reducing
costs associated with rent, utilities, and staffing.

▪ Personalization: E-commerce allows businesses to personalize their offerings

based on customer data, providing a more personalized shopping experience.

➢ Cons of E-commerce:

▪ Lack of personal interaction: E-commerce eliminates the face-to-face

interaction that customers may prefer when shopping.

▪ Security concerns: E-commerce involves the transmission of sensitive

information, such as credit card details, over the internet, which can be
vulnerable to security breaches.

▪ Dependence on technology: E-commerce requires reliable and up-to-date

technology infrastructure, which can be costly to maintain.

▪ Shipping delays: E-commerce relies on shipping logistics, which can result in

delays or lost shipments.

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2. Discuss all e-commerce models with examples.
➢ There are several types of e-commerce models, each with its unique
characteristics and advantages. Here are some of the most common e-
commerce models with examples:
▪ Business-to-Consumer (B2C) Model: This e-commerce model is the most
common and well-known model, where businesses sell products or services
directly to individual consumers. B2C companies typically offer a wide variety of
products and services to meet the needs of consumers. For example, Amazon
offers a vast selection of products ranging from books to electronics to groceries.

▪ Business-to-Business (B2B) Model: This e-commerce model involves businesses

selling products or services to other businesses. B2B companies typically offer
specialized products and services that meet the specific needs of other
businesses. For example, Alibaba offers a platform for businesses to purchase
products in bulk from suppliers all around the world.

▪ Consumer-to-Consumer (C2C) Model: This e-commerce model involves

individuals selling products or services to other individuals. C2C companies
typically offer a platform where individuals can sell used or handmade items to
other individuals. For example, eBay allows individuals to sell used or new items
to other individuals.

▪ Consumer-to-Business (C2B) Model: This e-commerce model involves individuals

selling products or services to businesses. C2B companies typically offer a
platform where individuals can offer their services or products to businesses. For
example, freelancing websites like Upwork and Fiverr allow individuals to offer
their services to businesses that require them.

▪ Business-to-Government (B2G) Model: This e-commerce model involves

businesses selling products or services to government agencies. B2G companies
typically offer a platform where businesses can bid on government contracts for
goods or services. For example, FedBid allows businesses to bid on government
contracts for various products and services.
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 ▪ Consumer-to-Government (C2G) Model: This e-commerce model involves
individuals selling products or services to government agencies. C2G companies
typically offer a platform where individuals can purchase government-related
products or services. For example, websites that allow individuals to pay taxes or
fines online.

▪ Government-to-Business (G2B) Model: This e-commerce model involves

government agencies selling products or services to businesses. G2B companies
typically offer a platform where businesses can bid on government contracts for
goods or services. For example, the General Services Administration (GSA) offers
GSA Advantage, a platform where businesses can purchase products and services
from GSA-approved vendors.

▪ Government-to-Consumer (G2C) Model: This e-commerce model involves

government agencies selling products or services directly to individual consumers.
G2C companies typically offer a platform where individuals can purchase
government-related products or services. For example, websites that allow
individuals to purchase hunting or fishing licenses online.

3. Describe EDI along with its standards. Define M-commerce.

➢ EDI stands for Electronic Data Interchange, which is a method for
businesses to exchange documents electronically. The EDI system
replaces the traditional method of sending documents like
purchase orders, invoices, and shipping notices via paper or email.
With EDI, businesses can exchange these documents quickly and
accurately, reducing errors and increasing efficiency. EDI can be
used for a variety of industries, including retail, healthcare,
finance, and logistics.

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➢ There are several EDI standards that businesses use to ensure
compatibility when exchanging documents. Here are some of the most
common EDI standards:

▪ ANSI X12: This is the most widely used EDI standard in North
America and is used by several industries, including retail,
healthcare, and finance.

▪ EDIFACT: This is the international EDI standard used by businesses

in Europe, Asia, and Australia.

▪ TRADACOMS: This is a UK-specific EDI standard used by

businesses in the retail industry.

▪ ODETTE: This is an EDI standard used by businesses in the

automotive industry.

➢ M-commerce, or mobile commerce, refers to the buying and selling of

products or services through mobile devices like smartphones and
tablets. M-commerce has become increasingly popular in recent years
due to the widespread use of mobile devices and the convenience they
provide. M-commerce can include activities like mobile banking,
mobile shopping, and mobile payments. Examples of m-commerce
platforms include mobile shopping apps like Amazon, mobile payment
systems like Apple Pay and Google Wallet, and mobile banking apps
from various financial institutions.

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4. Explain in brief the terms Internet, Intranet and Extranet.
What are the risks involved in e-commerce?
➢ Internet: The Internet is a global network of interconnected
computers that communicate with each other using standardized
communication protocols. It allows users to access a vast array of
information and services, including email, social media, and e-
commerce websites.

➢ Intranet: An intranet is a private computer network used by an

organization to share information and resources within the
organization. It operates using the same protocols as the Internet, but
access is restricted to authorized users within the organization.

➢ Extranet: An extranet is an extension of an organization's intranet

that allows authorized external users to access some of the
organization's internal resources. For example, a company might use
an extranet to allow its suppliers or partners to access information
about orders or inventory.

➢ Now, regarding the risks involved in e-commerce, here are some

of the most common risks that businesses face when conducting
e-commerce transactions:

▪ Security Risks: E-commerce transactions involve the transfer of sensitive

information like credit card details, personal information, and financial
data. Cybercriminals may try to intercept this information through
hacking or other means, leading to identity theft and fraud.
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 ▪ Fraud Risks: E-commerce transactions are also vulnerable to fraud, where
criminals use stolen credit card details or other tactics to make fraudulent
purchases.

▪ Legal Risks: E-commerce transactions are subject to a variety of laws and

regulations, including consumer protection laws, privacy laws, and data
protection laws. Failure to comply with these regulations can result in legal
action and financial penalties.

▪ Reputation Risks: E-commerce transactions can impact a business's

reputation if customers experience problems like delayed shipping,
damaged products, or poor customer service. Negative reviews and social
media comments can harm a business's reputation and lead to a loss of
customers.
5. Explain EPS with its types. Discuss about the security requirements of EPS.
➢ EPS stands for Electronic Payment System, which is a type of online payment
system that allows users to make electronic transactions over the internet.
EPS is a convenient and efficient way to make payments, and it is widely
used in e-commerce and other online transactions.

➢ There are several types of EPS, including:

▪ Credit Card: This is the most common type of EPS, which allows users to make
online payments using their credit card details.

▪ Debit Card: Similar to credit card EPS, this type of EPS allows users to make online
payments using their debit card details.

▪ E-wallet: An e-wallet is a digital wallet that allows users to store their payment
information and make online payments quickly and easily.
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 ▪ Mobile Payment: This type of EPS allows users to make payments using their
mobile device, such as a smartphone or tablet.

➢ EPS security requirements are essential to ensure the safety of online

transactions. Here are some of the most important security requirements
for EPS:

▪ Encryption: All sensitive data, such as credit card details and personal information,
should be encrypted during transmission to prevent interception by unauthorized
users.

▪ Authentication: EPS should require user authentication, such as a password or

biometric identification, to ensure that only authorized users can make
transactions.

▪ Fraud Detection: EPS should include fraud detection mechanisms to identify and
prevent fraudulent transactions.

▪ Compliance with regulations: EPS should comply with relevant regulations, such as
data protection laws and consumer protection laws, to ensure that user data is
protected and transactions are fair and transparent.

▪ Regular updates and maintenance: EPS should be regularly updated and

maintained to ensure that it is secure against new threats and vulnerabilities.

6. Give a brief account on: (Any Two)

a) Law Vs Ethics
➢

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 Law Ethics
▪ Set of rules and regulations ▪ Set of principles and values that
enforced by the government or guide personal behavior and
legal system decision-making
▪ Based on a formal system of ▪ Based on personal beliefs and
punishment and enforcement social norms
▪ Focuses on what is legal or ▪ Focuses on what is right or
illegal wrong
▪ Can sometimes conflict with ▪ Aligns with personal values and
personal values or beliefs beliefs
▪ Violations of the law can result ▪ Violations of ethics can damage
in legal consequences, such as personal and professional
fines or imprisonment reputation and relationships
▪ Created and enforced by the ▪ Personal and voluntary, not
government or legal system legally enforceable
▪ Can vary by jurisdiction and ▪ Generally consistent across
change over time cultures and time periods
▪ Often aimed at protecting ▪ Often aimed at promoting
public safety, health, and personal and social
welfare responsibility

▪ Can sometimes be overly rigid ▪ Can sometimes be vague or

or inflexible difficult to define

▪ Requires compliance from all ▪ Requires voluntary

individuals and organizations commitment and adherence by
within its jurisdiction individuals and organizations

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b) Entrepreneur vs Manager
➢
Entrepreneur Manager
▪ Focuses on innovation and creating ▪ Focuses on optimizing existing
new business opportunities processes and operations

▪ Takes calculated risks and accepts ▪ Seeks to minimize risk and avoid
failure as part of the learning failure
process
▪ Emphasizes creativity and ▪ Emphasizes efficiency and
innovation to drive growth productivity to maintain stability
▪ Relies on personal vision and ▪ Relies on data and analysis to guide
intuition to guide decision-making decision-making
▪ Often works independently or in ▪ Works within established
small teams organizational structures and
hierarchies
▪ Creates and leads a new business ▪ Manages and oversees the day-to-
venture day operations of an existing
business

▪ Typically operates in a dynamic and ▪ Typically operates in a more stable

uncertain environment and predictable environment

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c) Digital Signatures
➢ A digital signature is a cryptographic technique used to verify the
authenticity of digital messages or documents. It involves the use of a
mathematical algorithm to create a unique digital fingerprint of the
message or document that can be verified by anyone with access to the
sender's public key. The digital signature provides a high level of assurance
that the message or document was sent by the claimed sender and has
not been altered in transit.

Digital signatures are widely used in e-commerce, e-government, and

other digital transactions to ensure the security and authenticity of
electronic documents. They provide a tamper-evident mechanism to prove
the integrity of the document, as any alteration to the document would
invalidate the digital signature. Digital signatures are also legally
recognized in many countries as a valid form of electronic signature.

d) Electronic Funds Transfer

➢ Electronic Funds Transfer (EFT) is a system for transferring money
electronically from one bank account to another. EFT allows individuals
and businesses to make payments or receive funds electronically, without
the need for paper checks or physical cash. EFT transactions can be
initiated online, through mobile banking apps, or through other electronic
payment systems.

EFT is a fast and secure way to transfer funds, and it is widely used for
payroll deposits, bill payments, and other regular transactions. EFT can
help to reduce the risk of fraud and errors associated with manual
processing, as it eliminates the need for paper-based transactions. EFT
also provides a high level of convenience, as funds can be transferred
quickly and easily from one account to another.
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