Theory question 101
Computers in Commerce(a) Distinguish between commerce and e-commerce.
(b) Explain the following types of e-commerce: (i) business to customer; (ii) government to business
(c) State two advantages and three disadvantages of e-commerce.
Show the model answer
(a) Commerce is all activities involved in the buying, selling and distribution of goods and services (trade and aids to trade); e-commerce is buying and selling of goods and services through the internet and other electronic networks.
(b)(i) Business to customer (B2C): a firm sells goods or services directly to individual consumers online, e.g. through its website or app.
(ii) Government to business (G2B): government agencies deal electronically with businesses, e.g. online registration, tax filing, contracts and providing information.
(c) Advantages (any two): reaches customers anywhere, at any time; lower operating costs; convenience of shopping from home; easy price comparison; quick transactions.
Disadvantages (any three): fraud and hacking/insecurity of data; buyer cannot inspect goods before payment; needs internet and devices, which may be costly or unavailable; delays or failure in delivery; lack of personal contact; difficulty with returns.
E-commerce is commerce carried out electronically.