CBSE Class 11 Business Studies Chapter 5: Emerging Modes of Business NCERT Solutions

Reviewed by NCERT Help Editorial Team · Updated on 29 Jul 2026

NCERT Solutions PDF Class 11 PDF

This chapter delves into the dynamic world of Emerging Modes of Business, crucial for Class 11 Business Studies students. The NCERT Solutions cover key concepts like e-business, outsourcing, and their various applications and distinctions from traditional business practices. Students will explore the components of e-commerce, the scope of outsourcing beyond ITES, and different payment mechanisms used in online transactions. The solutions also clarify the functions of call centers and differentiate between e-business applications and outsourcing activities. These solutions are designed to provide clear, step-by-step explanations, aiding students in grasping complex topics and preparing effectively for their examinations by reinforcing theoretical knowledge with practical examples.

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Quick info

Board	CBSE
Class	Class 11
Subject	Business Studies
Session	2026
Language	English
Type	NCERT Solutions
Chapter	Chapter 5

Chapter summary

Chapter 5, Emerging Modes of Business, focuses on modern business practices. The NCERT Solutions provide a detailed explanation of e-business, contrasting it with traditional business. It covers outsourcing, its various forms, and applications like online bidding, procurement, and trading. The solutions also address payment mechanisms in e-business and the scope of call centers. This chapter is essential for understanding the evolution of business in the digital age.

Learning outcomes

Understand the concept and scope of e-business.
Differentiate between e-business and traditional business.
Explain the concept and various applications of outsourcing.
Identify different payment mechanisms used in e-business.
Distinguish between e-business applications and outsourcing activities.

Topics covered

Paper topics

E-business
Traditional Business
Outsourcing
ITES (Information Technology Enabled Services)
Manufacturing and R&D Outsourcing
Off-shoring
Payment Mechanisms in E-business
E-Cash
Call Centers
In-bound and Out-bound Business
Online Bidding
Online Procurement
Online Trading

Important topics

E-business vs. Traditional Business
Scope and Types of Outsourcing
Applications of E-business
Payment Mechanisms in E-business
Role of Call Centers and BPO

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Questions and Solutions

Question 1

1. Which of the following interactions is NOT included in e-commerce?

A. A business's interactions with its suppliers

B. A business's interactions with its customers

C. Interactions among the various departments within the business

D. Interactions among the geographically dispersed units of the business

Solution: The correct option is C. E-commerce primarily refers to the buying and selling of goods and services over the internet, which involves transactions between businesses and their customers, suppliers, and even between different geographically dispersed units of the same business. Interactions among the various internal departments of a business, while important for operations, do not fall under the definition of e-commerce.

Question 2

2. What is the scope of Outsourcing?

A. Restricts only to the contracting out of Information Technology Enabled Services (ITES)

B. Restricts only to the contracting out of non-core business processes

C. Includes contracting out of manufacturing and R&D as well as service processes — both core and non-core — but restricts only to domestic territory

D. Includes off-shoring

Solution: The most comprehensive answer is D, as outsourcing can include off-shoring. Outsourcing is the practice of contracting out business functions or processes to a third-party provider. This can extend beyond just ITES (Information Technology Enabled Services) and non-core processes to include manufacturing, research and development (R&D), and core services. Furthermore, outsourcing can be done domestically or internationally, a practice known as off-shoring. Therefore, including off-shoring accurately reflects the broad scope of outsourcing.

Question 3

3. Which is a payment mechanism typical to e-business?

A. Cash on Delivery (CoD)

B. Cheques

C. Credit and Debit Cards

D. e-Cash

Solution: The correct option is D. While Cash on Delivery (CoD), cheques, and credit/debit cards are used in various business transactions, e-Cash represents a purely digital form of currency specifically designed for online transactions. It is a direct and typical payment mechanism inherent to the nature of e-business.

Question 4

4. A Call Centre handles:

A. Only in-bound voice based business

B. Only out-bound voice based business

C. Both voice based and non-voice based business

D. Both customer facing and back-end business

Solution: The most accurate answer is D. Call centers are versatile and can handle a wide range of operations. They manage inbound voice-based business, such as resolving customer queries and complaints, and can also perform outbound voice-based business, like telemarketing or surveys. Additionally, they often handle non-voice based communication (like emails or chat) and can support both customer-facing activities and back-end business processes.

Question 5

5. Which of the following is NOT an application of e-business?

A. Online bidding

B. Online procurement

C. Online trading

D. Contract R&D

Solution: The correct option is D. Contract R&D (Research and Development) is considered an outsourcing activity. While it involves contracting a service to a third party, it is distinct from direct e-business applications like online bidding, online procurement (purchasing goods/services online), and online trading (buying/selling securities online). Contract R&D can be outsourced to domestic or foreign partners.

Question 1 (Short Answer)

1. State any three differences between e-business and traditional business.

Solution: Here are three key differences between e-business and traditional business:

Geographical Reach: E-business has a global reach, allowing businesses to connect with customers and suppliers worldwide through the internet. Traditional business is typically limited by physical location, serving a local or regional market.
Operating Hours: E-business operates 24/7, allowing transactions and customer service at any time. Traditional businesses usually have fixed operating hours, limiting accessibility.
Cost Structure: E-business often involves lower setup and operational costs compared to traditional businesses, as it reduces the need for physical infrastructure like large stores or extensive sales forces. Traditional businesses incur significant costs for rent, utilities, and physical inventory management.
Customer Interaction: E-business facilitates remote interaction through websites, emails, and chat, offering convenience. Traditional business relies on face-to-face interaction in physical stores or offices.

Common mistakes

Confusing the scope of outsourcing with only ITES.
Not recognizing the broad applications of e-business beyond simple transactions.
Misunderstanding the diverse functions handled by call centers.

Revision tips

Focus on the key differences between e-business and traditional business models.
Memorize the various applications of e-business and outsourcing.
Understand the different payment methods relevant to online transactions.
Review the scope and functions of call centers and BPO.

Practice MCQs

Q1. Which of the following interactions is NOT typically included under the umbrella of e-commerce?

Q2. What is the most accurate description of outsourcing?

Q3. Which payment mechanism is considered typical for e-business, offering a digital form of currency?

Q4. A Call Centre primarily handles which type of business operations?

Q5. Which of the following is NOT considered an application of e-business?

Frequently asked questions

What is the main difference between e-business and traditional business?

E-business utilizes information and communication technology (ICT) for conducting business activities online, offering wider reach and efficiency. Traditional business relies on physical stores, face-to-face interactions, and manual processes.

Does outsourcing only involve IT services?

No, outsourcing is much broader. It includes contracting out manufacturing, R&D, and various service processes, which can be core or non-core, and can be done domestically or internationally (off-shoring).

What are some common payment methods in e-business?

Common payment methods include credit/debit cards, net banking, Cash on Delivery (CoD), and digital payment systems like e-cash.

What functions can a call center perform?

Call centers can handle both inbound (receiving calls, customer queries, complaints) and outbound (making calls for sales, surveys) voice-based business. They can also manage non-voice based communication and customer-facing as well as back-end operations.

Is contract R&D an example of e-business?

Contract R&D is primarily an application of outsourcing, where a company outsources its research and development activities. While technology is used, it's categorized under outsourcing rather than a direct e-business application like online trading or procurement.

How do these NCERT solutions help Class 11 students?

These solutions provide clear, rewritten answers to the chapter's questions, explaining concepts like e-business and outsourcing in detail. They help students understand the nuances and prepare for exams by reinforcing key topics.

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