business paper 1 mock

Question 1

e-commerce defenition

Answer 1

Business that do not have a physical shop. They have a website where orders can be placed, This can be direct from the producer or through a retailer

e stands for electronics

e.g Amazon, asos and ebay

Question 2

M-commerce defenition

Answer 2

The buying and selling of products through wireless, handheld device such as a smartphone

m stands for mobile

Question 3

advantages of E-commerce and M- commerce

Answer 3

• Customers can order any time
• customers can order from anywhere
• Customers can order from home-convenience
• less cost and higher revenue - dont physically need a shop
• can raise prices immedieatly when they see the product is high in demand
• more access to other markets - can target a wider market - can sell to anyone anywhere in the world

Question 4

disadvantages of E-commerce and M- commerce

Answer 4

• higher rate of returned goods as customers cannot try or touch items so more likley to return it
• technology problems - websites could crash not allowing any sales to occur
• delivery issues - they could get lost or delayed which may infuriate the customer, too expensive may switch to your competitiors (amazon)
• bad reviews - damages reputation, lowers customer’s confidence, hard to remove, influences purchase decitions

Question 5

shareholders defenition

Answer 5

A shareholder is someone who owns part of a company by buying its shares (stocks). They can make money if the company does well.

Question 6

suppliers defenition

Answer 6

A supplier is a business or person that provides goods or services to other businesses.

Question 7

employees defenition

Answer 7

An employee is a person who works for a business in exchange for wages or a salary.

Question 8

how does digital communication effect

1. shareholders
1. suppliers
1. employees

Answer 8

1. companies and sharholders can hold meetings online allowing them to