Q7.

Write short notes: (10 Marks)

1. Definition of E-Commerce
− E-Commerce can be defined as the process of buying and selling of goods or services using
an electronic medium such as Internet.
2. E-Commerce
− E-commerce trading activities are online via the internet and can be considered automatic.
− E-commerce is 24X7, it can be done anytime day and night.
− E-commerce can be termed as screen to face interaction.
− E-commerce’s scope is global.
3. Difference between Traditional Commerce and E-Commerce.
− Traditional commerce is limited to business hours, mostly during the day.
E-commerce is 24X7, it can be done anytime day and night.
− Traditional Commerce’s scope is local.
E-commerce’s scope is global.
4. Advantages of E-Commerce
− Global scope:
E-commerce provides the sellers with a global reach. Now sellers and buyers can meet in the
virtual world, without barrier of place (geography).
− Anytime shopping:
One other great advantage is the convenience. A customer can shop 24×7. The website is
functional at all times, it does not have working hours like a shop.
5. Disadvantages of E-Commerce (Board Bank)
− Setup Cost:
The setup of the hardware and the software, the training cost of employees, the constant
maintenance and upkeep are all quite expensive.
− Security:
Security is another area of concern. Credit card theft, identity theft etc. remain big concerns
with the customers.
6. Types of E-Commerce / Define B2C and B2B type (Board Bank)
− Business - to - Consumer (B2C) : In B2C model, business sells it’s products directly to a
customer. Example: Amazon
− Business - to - Business (B2B) : In B2B model, business sells it’s products to an intermediate
buyer who then sells the product to the final customer. Example: D’Mart purchases goods
from Parle and Nestle
− Consumer - to - Consumer (C2C) : In C2C model, consumer helps consumer to sell their
assets like residential property, cars, motorcycles etc. Example: OLX
− Consumer - to - Business (C2B) : In this model, consumers have products or services of value
that can be consumed by businesses. Example: ebay
7. E-Commerce Trade Cycle Phases
− Pre-Sales : It consist of two steps like Search and Negotiate.
− Execution : This phase consist of Order and Delivery.
− Settlement : This phase consist of Invoice (if any) and Payment.
− After-Sales : This phase consists of warranty and After Sale Services.
8. Modes of Payment in E-Commerce (Note: write any 2) OR separate mode also expected
− Credit Cards : Credit cards are the most common way for customers to pay online.
Merchants can reach out to an international market.
− E-wallets : E-wallet is a type of pre-paid account in which a user can store money for any
future online transaction. An E-wallet is protected with a password. Example: Paytm
− Mobile Payments : Mobile payments offer a quick solution for customers to purchase on e-
commerce websites. Examples are apps like BHIM, UPI, Paytm, Google Pay, Paypal,..etc.
− Bank Transfers : Transferring money from bank account is usually fast and safer than
withdrawing and paying in cash because every transaction will be authenticated by checking
customer’s banking credentials. Example : NEFT, IMPS etc.
9. M-Commerce
− M-Commerce is the buying and selling of goods and services through wireless handheld
devices such as smartphones and tablets. Some of application of M-Commerce are mobile
banking, ticket booking, E-bill payment, online auctions, stock market trading etc.
10. Social Commerce
− Social commerce is a form of electronic commerce that involves social media, online media
that supports social interaction. Social commerce is the use of networking websites such as
Facebook, Instagram and Twitter. The success of a social commerce campaign is measured
by the degree to which consumers interact with the company's marketing through retweets,
likes and shares.
11. EDI
− EDI is the electronic data interchange of business information using a standardized format; a
process which allows one company to send information to another company electronically
rather than on paper. Two most common documents are purchase orders and invoices.
12. E-Governance
− It signifies the implementation of information technology in the government processes. E-
governance delivers SMART government. (S- Simple, M-Moral, A-Accessible, R-Responsive,
T-Transparent Government)
13. Advantages of E-governance (Board Bank)
− Reduced corruption
− High transparency
− Increased convenience
− Reduction in overall cost.
14. Types of E-Governance / 2 types also expected then write any 2
− Government-to-Citizen (G2C):
The Government-to-citizen refers to the government services which enable citizens to get
access to wide variety of public services. Examples are license renewals and paying tax.
− Government-to-Business (G2B):
The Government to business is the exchange of services between Government and Business
organizations. G2B provides access to relevant forms needed to comply. It aims at
eliminating paper work, saving time, cost and establish transparency in the business
environment, while interacting with government.
− Government-to-Government (G2G):
The Government-to-Government refers to the interaction between different government
departments, organizations and agencies. In G2G, government agencies can share the same
database using online communication. The government departments can work together.
− Government-to-Employee (G2E):
The Government-to-Employee provides online facilities to the employees like applying for
leave, reviewing salary payment record and checking the balance of holiday. The G2E sector
provides human resource training and development.
15. Encryption
Encryption and decryption are widely used on the internet to protect user information being
sent between a browser and a server. Encryption converts Plain text (readable form of data)
into Cipher Text (coded form of data) means non-readable form of data.
16. Decryption
Encryption and decryption are widely used on the internet to protect user information being
sent between a browser and a server. Decryption is exactly opposite process of encryption.
It converts Cipher text (coded form of data) into Plain text (readable form of data).
17. Types of Encryption
− Symmetric (Private-Key Encryption)
− Asymmetric (Public-Key Encryption)
18. Digital Signature
− A digital signature is also known as an electronic signature. A digital signature guarantees
the authenticity of an electronic document. Digital signatures are used in e-commerce,
software distribution, financial transactions.
19. Digital Certificate
A Digital Certificate is an electronic "password" that allows a person, organization to
exchange data securely over the Internet. In this information is transferred between two
authorized partners who have digital certificates issued by some supreme authority.
20. ERP
− Enterprise Resource Planning (ERP) package used when it is very difficult to manage huge
information by people alone.
− ERP is a single software program that facilitates various functional modules.
− Information about the entire enterprise can be stored in a centralized database and it is
made available to all departments.
21. Financial module
− This module is the core of many ERP software packages.
− It can collect financial data from various functional departments and generate valuable
financial reports.
− Financial reports include balance sheets, general ledger, trial balance, financial statements,
etc.
22. Manufacturing module
− Manufacturing module contains necessary business rules to manage the entire production
process.
− This module of ERP enables an enterprise to combine technology and business processes to
get integrated solutions.
− It also provides freedom to change manufacturing and planning methods as and when
required.
23. Production planning module
− This module is used for optimising the utilisation of available resources and helps the
organisation to plan their production.
− This module identifies the materials required, allocates optimal resources using data and
sales forecasting with the sales data.
24. HR module
− HR stands for Human Resource.
− HR module maintains an updated and complete employee database including personal
information, salary details, attendance, performance, promotion, etc. of all employees in an
enterprise.
25. Inventory control module
− This module covers processes of maintaining the appropriate level of stock in the
warehouse.
− It is responsible for identifying the inventory requirements and setting the target of the
stock items required.
26. Purchasing module
− Purchase Module helps for generating purchase order evaluating the supplier, and billing.
− It is closely connected with the inventory, finance and production planning module.
27. Marketing module
− Marketing module is used for monitoring and tracking customer orders, increasing customer
satisfaction and for eliminating credit risks.
28. Sales and distribution module
− This module helps for tracking enquiries, order placement, order scheduling, dispatching and
invoicing.
− This module is closely integrated with the e-commerce website of the organization.
29. Quality management module
− This module is used for managing the quality of the product.
− The quality management module fulfills the following functions :- Quality planning, Quality
inspection and Quality control.
30. Product Life Cycle Management (PLM) (Board Bank)
− Product Life Cycle Management is the process of managing the entire life cycle of a product.
− Product life cycle is used for determining the lifespan of a product.
− Four stages of product life cycle which consists of development and introduction of a new
product, then its growth in the market, its maturity and at last its decline if it cannot
compete with similar products of other companies.
31. Management Information System (MIS)
− MIS will collect relevant data from inside and outside an enterprise.
− This data is processed and stored in a centralized database and is made available to its users
whenever it is needed.
− MIS has the capability to generate reports as and when the user demands it.
32. Supply Chain Management (SCM)
− The supply chain consists of all the activities associated with moving goods from the supplier
to the customer.
− Is very important for companies to move product to their customers quickly.
− Faster product delivery or availability will increase the sale and satisfaction of customers.
− Software packages are available in the market for managing the same.
33. Customer Relationship Management (CRM) (Board Bank)
− CRM is a term applied to processes implemented by a company to handle its contact with its
customers.
− CRM covers methods and technologies used by companies to manage their relationships
with clients.
− It includes the capture, storage and analysis of customer information.
− The data gathered as a part of CRM must consider customer privacy and data security.
34. Decision Support System (DSS)
− Decision Support Systems are interactive, computer-based systems that helps users in
judgment and choice activities.
− It is a computer program application that analyses business data and presents it so that
users can make business decisions more easily.
− DSS needs a strong database management system to provide the support in decision
making.
35. Benefits of ERP
− Improved resource utilization:
An enterprise can plan and manage its resources effectively by installing ERP software. So
the wastage or loss of all types of resources can be reduced.
− Information integrity
We will get an integrated form of information about the enterprise. The entire information
about an enterprise is stored in a centralized database.
36. Future of ERP
− Artificial Intelligence services.
− Machine learning.
− Embedded business intelligence, analytics and data management features.
− Transactions triggered by sensors.
37. Tally Accounting Software
− Tally is a type of application software that records and processes accounting transactions.
− System that processes the financial transactions and events as per Generally Accepted
Accounting Principles (GAAP).
− System to produce reports as per user requirements such as Balance Sheet, Profit/Loss A/c
etc.
38. Ledgers in Tally
− All financial entries are made using Ledgers or account heads.
− Ledger accounts are created to identify transactions.
− By default, tally gives 2 ledgers.
39. Groups in Tally
− Groups in Accounting Software classify and identify account heads according to their nature.
− This helps in presenting summarised information.
− By default, tally gives 28 groups.
40. Vouchers in Tally
− A voucher is a pre-numbered accounting document used for recording daily transactions.
− Every voucher maintains its debit and credit record.
− There are pre-defined voucher types for every type of transaction.
− Care must be taken to select appropriate Voucher Type.
41. Contra Voucher
− Deposits or withdrawals of cash from bank or transfer of funds from one bank to another
transfer of cash to Pretty Cash.
42. Sales Return / Credit Note Voucher
− Return of goods by a customer.
− It is issued when there is reduction in the price charged to a customer.
43. Purchase Return / Debit Note Voucher
− Return of goods to a supplier.
− It is issued when there is reduction in the price given by a supplier
44. GST
− GST stands for Goods and Service Tax.
− GST is an Indirect Tax.
− The Act came into effect on 1st July 2017.
− GST is one nation, one tax.
− France was the first country to implement the GST in 1954.
45. Trial Balance
− Trial Balance is a statement summarizing the closing balance of all the ledger accounts,
prepared with the view to verify the arithmetical accuracy of ledger posting.
− In Trial balance, all the ledger balances are posted either on the debit side or credit side of
the statement.
46. Profit and Loss Account
− Profit and Loss Account is a type of financial statement which reflects the outcome of
business activities during an accounting period (i.e. Profit or loss).
− It reveals money spent or cost incurred in an organization’s effort to generate revenue,
representing the cost of doing business.
47. Balance Sheet
− A balance sheet states a business's assets, liabilities, and shareholders equity at a specific
point in time.
− A balance sheet tells you a business's worth at a given time, so you can better understand its
financial position.
48. The Day Book
− Day Book contains all vouchers for the day, including inventory vouchers.
− Its purpose is to show you a day’s transactions, though you can display a report for any
period using Change period option.
49. GSTIN
− Goods and Services Tax Identification Number (GSTIN) is the registration number allotted to
every registered dealer under GST Act.
− The GSTIN is a 15 digit PAN based registration number.
− You may register multiple businesses under the same PAN registration, provided they are all
within the same state.
50. HSN Code
− HSN stands for Harmonized System of Nomenclature, is an internationally accepted coding
system developed by World Customs Organisation (WCO) with the vision of classifying goods
all over the world in a systematic and logical manner.
51. SAC Code
− SAC stands for Services Accounting Code, which is issued by CBEC(Central Board of Excise
and Customs) to uniformly classify each service under GST. Each service has a unique SAC.
52. GST Rates
− The government has proposed a 4-tier tax structure for all goods and services under the
slabs- 5%, 12%, 18% and 28%.
− There is zero % tax imposed on items such as, milk, sugar, salt, eggs, bread butter milk, curd,
natural honey, fresh fruits and vegetables, jute, fresh meat, fish, chicken, stamps, judicial
papers, printed books, newspapers, bangles, handloom. etc.