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Emerging Modes of Business Class 11 Notes CBSE Business Studies Chapter 5

Last updated date: 27th Feb 2024
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Revision Notes for CBSE Class 11 Business Studies Chapter 5 - Free PDF Download

The Business Studies Class 11 Chapter 5 ‘Emerging Modes of Business’ notes cover precise explanations of all the topics covered in the chapter, which will help the students to understand the concepts better. This chapter covers topics like BPO, e-business, e-commerce, etc. The notes will give the students a clear picture of the scope, benefits, limitations, and various factors that give rise to a different mode of business behaviour. Download and refer to the Business Studies Class 11 Chapter 5 Notes PDF for free from Vedantu.

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Access Class 11 Business Studies Chapter 5 – Emerging Mode of Business Notes

E-Commerce and E-Business

  • E-Business is described as the use of computer networks to conduct business, trade, and commerce.

  • E-business is a more comprehensive phrase that encompasses a wide range of electronic business transactions and services, including the more well-known 'e-commerce' operations.

  • E-commerce refers to a company's online interactions with its customers and suppliers.

  • E-business encompasses not just e-commerce, but also production, inventory management, product creation, accounting and finance, and human resource management.

  • Also, the scope of E-business is said to be wider and broader than that of e-commerce.

  • Examples of E-commerce and E-business are Amazon, Flipkart, eBay.

Scope of E-Business

Scope of Business on the Basis of Business:

  • Over computer networks, functions like production, finance, marketing, and personnel administration, as well as management operations such as planning, organising, and controlling, can be performed.

 Scope of Business on the Basis of Parties :

  • B2B, which is an abbreviation for business-to-business refers to a company's interactions with other companies.

  • B2C, or business-to-consumer, refers to a company's interactions with its customers.

  • Intra-B, which refers to a company's internal operations.

 B2B Commerce

  • Because both parties involved in e-commerce transactions are businesses, the term B2B (business-to-business) was coined. 

  • A business must engage with a number of other businesses in order to create utility or deliver value. These businesses may be suppliers or vendors of various inputs, or they may be part of the distribution channel through which a company distributes its items to clients.

  • Example

B2C Commerce

  • Business-to-customer (B2C) interactions involve business organizations on one hand and their customers on the other.

  • It encompasses a wide range of internet marketing operations such as identifying activities, promoting them, and occasionally even delivering items.

  • It enables a business to be in touch with its customers on round-the-clock basis which helps in knowing the customer satisfaction level.

  • Few examples are Amazon, Walmart etc.

Intra-B Commerce

  • The parties participating in electronic transactions are all from the same company.

  • Today's businesses are able to engage in flexible manufacturing in great part due to the use of intra-B commerce. The use of computer networks allows the marketing department to communicate with the production department on a continuous basis, allowing for the creation of personalised products according to the needs of each unique customer.

C2C Commerce

  •  The consumer is the source of the business, and consumers are the ultimate destination.

  •  This form of business is best for dealing with items for which no recognised market mechanism exists.

  • Few examples are Quickr, Olx etc.

Difference Between E-Business and Traditional Business.


      Traditional Business


Ease Of Formation



Physical Presence


Not required

Cost Of Setting Up

Yes, in terms of finding a location which is nearer to the source of raw materials or the market for the products.


Operating Cost 

High, because various costs has to be incurred in terms of rent payment etc.

Low as no requirement of physical  facilities.

Nature Of  Contact With The Suppliers And The Customers

High due to fixed charges associated with investment in procurement and storage, production, marketing and distribution facilities.

Low as a result of reliance  on a network  of relationships rather than ownership  of resources.

Nature Of Internal Communication

Indirect through intermediaries


Response Time For Meeting Customers /Internal


From top level management to middle level management, and then to lower level management to operatives.


Allowing  direct vertical, horizontal  and diagnostic communication instantaneously.

Shape Of The Organisational Structure

Vertical/ tall due to hierarchy or chain of command.

Because of the directness of the order and communication, it is horizontal/flat.

Business Processes And Length Of Cycle

Sequential procedure i.e 

Purchase- production/operation- marketing-sales. The business processes cycle is therefore longer.

Simultaneous (concurrence) different processes take place at a time. Business process cycle is therefore shorter.

Opportunity For Interpersonal Touch

More, because of higher personal contact.


Opportunity For Physical Pre Sampling Of The Products


Less. However, for digital products such an opportunity is tremendous. One can presample books, journals etc

Ease Of Going Global

Less, because a lot of legal formalities have to be done.

Much, as cyberspace is truly without boundaries.

Govt. Patronage

Shrinking with time.

Much as IT sector is among the topmost priorities of the government.

Nature Of Human Capital 

Semi-skilled and even semi skilled manpower needed.

Technically and professionally qualified personnel needed.

Transaction Risk

Low due to arm’s length transaction and face to face contact.

high due to the distance and anonymity of the parties.

Benefits of E-Business

  1. Easy to Set Up:

If we have the necessary software, a device, and access to the internet, we can start an online business from the comfort of our own homes.

  1. Cheaper than Traditional Business:

The cost taken to set up any business is cheaper. In addition, the transaction costs are effectively lower.

  1. No Geographical Boundaries:

Anyone from anywhere can order anything at any time. On the one hand it allows the seller and access to the global market, on the other hand It offers the buyer freedom to choose products from almost any part of the world.

  1. Flexible Business Hours:

The internet is available at all times. The time barrier that location-based firms face is broken by e-business.

  1. Speed and Efficiency:

Online ordering systems scans process payment and orders in real-time, usually faster, more accurately and cheaper than human workers.

  1. Movement towards Up Paperless Society:

Use of the internet has considerably reduced dependence on paperwork. In fact, administrative reforms are attracting E-Commerce solutions to speed up the process of giving rights, approvals, and licenses.

Limitation of E-Business

  1. Lack of Personal Touch:

  • Unlike traditional business, you cannot touch and feel the product. So it is difficult for the consumers to check the quality of the product, until the order has been delivered.

  • Traditional businesses have contact with the salesperson in the traditional way, and there is a sense of humanity and trustworthiness as a result of this. It also fosters customer confidence. Such characteristics will always be absent from an e-business paradigm.

  1. Delivery Time:

  • The delivery of the products takes time in e-business. This lag time often discourages customers.

  • However, these days, e-businesses are trying to resolve such issues by promising very limited time. For example Amazon now guarantees delivery within one day.

  1. Security Issues:

  • Many people are capable of conducting online business. Additionally, hackers have an easier time obtaining one’s financial information. It has a few concerns with security and integrity. This creates skepticism among potential clients.

  1. Technology Capability and Competency of E-business Participants are Required:

  • E-business necessitates a high level of computer literacy among the parties involved. This obligation can also be blamed for the so-called digital divide.

  • The term "digital divide" refers to the separation of society based on one's familiarity or lack thereof with digital technologies.

  1. Ethical Fallouts:

  • Companies utilise an 'electronic eye' to keep track on your computer files, email account, and internet visits, among other things, so as to gain knowledge about your interests, preferences etc. It’s unethical in a number of ways

Process of Online Trading

Registration  ⇒ Placing an order ⇒ Payment mechanism

Step 1: Registration:  

  • When you register with an online retailer, you create an 'account’, by filling up the registration form.

  •  A "password" must be entered among the numerous details since the areas relating to an individual’s "account" and "shopping basket" are password protected.

Step 2: Placing an Order: 

  • You can add products to the shopping cart by dragging and dropping them.

  • A shopping cart is an online record of what an individual has added to his cart while visiting an online store. 

  • Once you've decided what you want to buy, you may 'checkout.'

Step 3: Payment Mechanism:

Purchases through online shopping may be done in a number of ways.

  • Cash-on-Delivery: Payment for things ordered online can be made in cash when the goods are delivered physically.

  • Cheque: The online merchant may arrange for the customer's cheque to be picked up. After realisation, product delivery may be attempted.

  • Net-banking Transfer: Modern banks provide to their customers the facility of electronic transfer of funds over the Internet using Immediate Payment Service (IMPS), NEFT and RTGS.

  • Credit or Debit Cards: The holders of credit cards can enjoy making purchases on credit. The amount owed by the cardholder to the online seller is assumed by the card issuing bank, which then transfers the transaction's amount to the seller's credit. 

A debit card permits the holder to make purchases up to the amount of money in the linked account. The moment a transaction is made, the amount due as payment is deducted electronically from the card.

  • Digital Cash: This type of currency has no physical qualities, but it allows you to utilise real money in an electronic format, such as through e-wallets or PayTm.

E-Business Risks

  1. Transaction Risks:

  • Either the seller or the customer may refuse an order being made or placed. This might be cited as 'default on order taking/giving.

  • The supposed delivery doesn't take place, or is delivered at the incorrect address, or product apart from ordered is delivered. This can be thought of as "default on delivery."

  • The vendor doesn't get payment for the things provided, despite the fact that the customer states that payment was created. This might be cited as 'default on payment'.

  • As a result, order taking/giving in e-business may pose a danger to the vendor or the client.

  1.  Data storage and Transmission Risks:

  • Data in the systems and on the way is vulnerable to a variety of threats. 

  • Important data may be stolen or altered for nefarious purposes or merely for fun/adventure 

  • Antivirus softwares installed and updated on a regular basis prove useful in scanning files and discs, protecting data files, folders, and systems against virus attacks.

  • Data could be intercepted during transmission. Cryptography can be used for this. It refers to the process of encrypting data and transforming it to cyphertext, an unreadable format. Only those with a secret key may decipher (or decrypt) the message into 'plaintext.'

  1. Risks of Threats to Intellectual Property and Privacy Include:

  • Once the material is available on the internet, it is no longer considered private. It got more difficult to protect it from being copied after that.

  • Data provided during online transactions may be shared with others, who may begin flooding one’s inbox with advertising and promotional materials.


It refers to the long-term outsourcing of non-essential and, more recently, key functions to captive or third-party specialists in order to take advantage of their expertise, efficiency, and, in certain situations, investment.

Feature of Outsourcing

  • Activities that are Interchangeable or Fungible: Activities that are not distinguishable can be outsourced, whereas unique activities cannot.

  • Requiring Explicit Knowledge which is Formal and Codifiable: Although an IT programmer's job can be outsourced to a third party, a CEO's position requires management, technical, and human relations skills.

  • Measurable Activity: You can't outsource something you can't quantify.

  • Activity is not Interconnected to other Jobs: If a fungible, specialized, and measurable position is linked to other key operations within the organization, it cannot be outsourced. 

Scope of outsourcing


                                              ⇙                                                            ⇘

                                 IT Based                                                                    Non IT based

                          ⇙                     ⇘                                                      ⇙                               ⇘

        Customer facing                  Backend                        Customer facing              Backend

      ⇙                    ⇘                       ⇙         ⇘                                  ⇙                        ⇙         ⇘

Voice based     Non voice   Non core      Core          Marketing    Manufacturing   Research

      ⇓                                           ⇓                    ⇓

In bound                                  HR                 Banking

Outbound                    Administration       Insurance




Need of Outsourcing:

  • Business firms are realising the usefulness of focusing on just a few areas where they have distinct capabilities or core competence, and contracting out the rest of the activities to their outsourcing partners.

  • By limiting the scope of their business, they may concentrate their attention and resources on a few key operations, improving efficiency and effectiveness.

  1. Quest of Excellence

  • Outsourcing allows the company to strive for excellence. One, due to their narrow focus, individuals excel in the activities that they can do best.

  • They also succeed by increasing their capabilities by outsourcing out the remaining tasks to people who excel at them.

  1. Cost Reduction

  • Division of labour and specialization improve quality while also lowering costs.

  • This occurs when outsourcing partners benefit from economies of scale by providing the same service to multiple organisations.

  • Cost reduction is also aided by differences in the prices of various production inputs across countries.

  1. Growth Through Alliance

  • Your investment requirements are minimised to the extent that you can utilise the services of others; others have already invested in such activities for you.

  • As a result, you can grow quickly because the same quantity of investible funds creates a big number of firms.

  • Inter-organizational information sharing and collaborative learning are facilitated by outsourcing.

  1. Fillip to Economic Development

  • Outsourcing, particularly offshore outsourcing, encourages entrepreneurship, job creation, and exports in the host countries (i.e., the countries from where outsourcing is done).

Concern Over Outsourcing 

  1. Confidentiality

  • Outsourcing necessitates the exchange of a great deal of critical information and knowledge.

  • It can harm the interest of the party that outsources its processes and even has a risk of competitor firms getting information about that company.

  1. Sweat Shopping

  • Outsourcing aims to reduce expenses by maximising the use of low-cost labour.

  • So, the firms that go in for outsourcing look for the 'doing' skills rather than development of the 'thinking' skills.

  1. Ethical Concerns

  • In order to cut the cost, the companies outsource the work to some other country where the work is done in an unethical way.

  • For example work is accomplished by doing child labour.

  1. Resentment in the Home Countries

  • In the course of contracting out manufacturing, marketing, research and development or IT based services, what is ultimately contracted out is 'employment' or jobs from one country to another.

  • This may cause resentment back in the home country if the home country is suffering from the problem of unemployment.

A Complete Guide to Business Studies Class 11 Chapter 5 Notes

Highlights of Business Studies Class 11 Chapter 5 Notes

  • Definition of e-business

  • Security of e-transactions and online transactions

  • e-business limitations and benefits

  • The concept of outsourcing

Benefits of Revision Notes for CBSE Class 11 Business Studies Chapter 5

CBSE Class 11 students referring to these Business Studies Chapter 5 Notes benefitted in multiple ways. Check out the following pointers which help the students to understand the advantages of revision notes for the CBSE Class 11 students:

  1. Revision is a key ingredient to include in your daily study. Thus these revision notes will help the students to revise business studies well. 

  2. In order to revise the students are either required to make their own notes or purchase any revision material, but here we provide ready-to-revise revision notes too for free! 

  3. Preparing self-notes might be time-consuming and the students are too exhausted to study further. With Vedantu’s revision notes less time will be consumed and the students will be able to study with focus and determination. 

  4. With the revision material, students can revise in a capsulated manner and thus revision can be done smartly. 

  5. Before the CBSE Class 11 Business Studies examination, when preparation time is limited, one can use these revision notes to revise in a short span of time.

CBSE Class 11 Business Studies Chapter 5 Emerging Modes of Business - Topics Covered  

  1. Meaning

  2. Scope of E-business

  3. Benefits of E-business

  4. Resources Required for Successful e-Business Implementation

  5. On-Line Transactions

  6. Payment Mechanism

  7. Security and Safety of e-Transactions

  8. Outsourcing or Business Process Outsourcing (BPO)

  9. KPO (Knowledge Process Outsourcing)

Emerging Modes of Business Class 11 Notes CBSE Business Studies Chapter 5 - Features of the Notes 

If you are planning to learn chapter 5 business studies in class 11, then there is no better option than following the notes provided by Vedantu. It is one of the most trusted education websites that will provide detailed and easy-to-understand business studies chapter 5 class 11 notes. Here are a few reasons why you should choose Vedantu.

  • The notes are written by professional teachers who prepared them after a considerable amount of research, as per class 11 standard.

  • The students need not invest money in getting the notes as they are available for free download.

  • The notes of chapter 5 business studies class 11 can be accessed by the students both online and offline.

  • The notes are the preferred choice for the majority of the students.

Revision Notes for CBSE Class 11 Business Studies Chapter 5 - Highlights of Business Studies Class 11 Chapter 5 Notes

  • Definition of e-business

  • Security of e-transactions and online transactions

  • e-business limitations and benefits

  • The concept of outsourcing

Definition of E-Business and E-Commerce

In Chapter 5 Emerging Modes of Business notes, it is stated that e-business refers to the use of a computer network for managing the industry, trade, and commerce. It involves business transactions and functions that are conducted electronically and this includes e-commerce. Now, e-commerce is the interaction that takes place between business firms and their customers and also suppliers over the internet. It is only a part of e-business that includes other electronically conducted business functions like inventory management, production, product development, finance, accounting, and human resource management. There are a lot of aspects of business studies that students need to have a clear understanding of in order to secure a good score in the exam and also to apply the knowledge practically in the future. 

Class 11 Business Studies Chapter 5 Notes: The Benefits of E-Business 

This form of business has become the preferred mode of business for many businessmen across the world. The reason behind this is that there are numerous advantages of e-business which are as follows.

  • Speed and efficiency

  • Easy to set up

  • Cheaper than traditional business

  • It offers flexible business hours

  • No geographical boundaries

  • The movement towards a paperless society

Limitations of E-Business 

In Chapter 5 BST Class 11 notes, students will also get to learn about the limitations of e-business which will greatly help develop clear concepts about various aspects of business studies. These limitations have been listed below.

  • Security Issues

  • Lack of personal touch

  • The requirement of technology capability and competence of parties to e-business

  • Delivery Time

  • Ethical fallouts 

Online Trading: A Brief Discussion

The three stages of online trading are:

  • Registration 

  • Placing an order 

  • Payment mechanism

Registration refers to having an account with the online vendor. Next, is the step of placing an order where the consumer would need to pick and drop the items in the shopping cart, and then the consumer can check out if they are sure of what they want to buy. The last stage is the payment mechanism which means the method the consumer chooses to pay. For instance, it could be through net banking, credit or debit cards, digital cash, cash on delivery or it could be through the method of writing a cheque.

Emerging Modes of Business Class 11 Notes CBSE Business Studies Chapter 5 - Extra Questions (Solved) for Practice

1. What are the two applications of e-business?

Ans. The two applications of e-business are as follows:

  • E-Procurement

  • E-Delivery

2. How does outsourcing help in the formation of a new mode of business?

Ans. In the process of Outsourcing, the non-core activities of the organisations are handed over to the external parts of the organisations who are specialised in those particular non-core functions.

Outsourcing helps the organisation to focus and work on its core activities giving the organisation enough flexibility to find innovative ideas to make a standpoint in the market. Outsourcing is a new model in the 21st century that every business is currently pursuing. 

3. What is the ‘e’ in e-business?

Ans. ‘E’ stands for ‘Electronic’ therefore it actually means Electronic Business. 

Tips to Study Business Studies Better

Now we will discuss some suggested tips which might improve your score in business studies Class 11:

  1. Business Studies is a theoretical subject so focus on the theory portion majorly. 

  2. Solve all the questions and answers given at the back of each chapter. 

  3. Solve the High Order Thinking Skills (HOTS) questions, this will improve your logical knowledge of the concept. 

  4. Revise from our ready-to-revise revision notes.

  5. Make sure you have studied from the previous year's question papers as well. 

In this article ‘Emerging Modes of Business Class, 11 Notes CBSE Business Studies Chapter 5’ we focused to make the students understand the benefits they can avail of if they download our free-to-download revision pdf which consists of lucid revision material which they can revise anytime and from anywhere. 

Additionally, we also have shared the key points of the topic covered in the CBSE Class 11 Business Studies Chapter 5.  Students are advised to check with the suggested tips which will help them in securing good marks in their business studies CBSE Class 11 exam. 

FAQs on Emerging Modes of Business Class 11 Notes CBSE Business Studies Chapter 5

1. What are the three stages of online transactions?

There are three stages of online transactions which are mentioned in class 11 BST ch 5 notes. These stages are as follows.

  • The pre-purchase or sale stage- This stage includes advertising and information seeking that are relevant to the transaction.

  • The purchase or the sale stage- This stage involves price negotiation, the closing of purchase or sales deal, and payment.

  • The delivery stage- This is the final stage of online transaction that involves the delivery of the product. 

2. What are the features of outsourcing?

Outsourcing has been defined as a long term contract of both core and non-core activities. There are certain features of outsourcing discussed broadly in class 11 business studies ch 5 notes, which are mentioned below.

  • Interchangeable or Fungible activities

  • Activity is Measurable

  • Needs explicit knowledge that is formal and codifiable

  • Activity is not interconnected to other jobs

However, there are certain concerns over outsourcing that involves confidentiality, sweat shopping, ethical concern, or resentment in the home countries.

3. What do you mean by Emerging Modes of Business in Class 11?

'Emerging Modes of Business' is a chapter in Class 11 which deals with the variety of modes that are being introduced in service sectors in recent days. We, as a customer, do not have to rely on physical markets anymore, with the emergence of online shopping and online banking methods. E-commerce and outsourcing have made businesses quite simple and convenient for both producers and consumers. Along with that, the W's and H's of E-commerce are explained in detail in this chapter. 

4. Why is e-banking referred to as the emerging mode of business?

E-banking, also known as electronic banking or online banking has become a widespread method of transaction across the world. In E-banking, the transaction between the seller and the buyer does not take place physically. In this mode of banking, the transaction is done through online platforms. The E-banking mode of transaction is considered by most people today because of its 24x7 availability. Anyone can avail of E-banking services on their mobile phones or other devices. 

5. What are the features of E-business in Class 11?

Following are the features of E-business:

  • E-businesses are easy to set up. Unlike shops and malls, they just have to be set up on the internet platform.

  • There are no geographical barriers. Anyone across the world can avail of the services provided by E-businesses.

  • There is no kind of interaction between the buyer and the seller.

  • Online business takes extra time to deliver the products to the consumers.

  • There are no set hours of trading. Anyone can buy the products from anywhere at any time. 

For more information, students can download the CBSE Class 11 Business Studies revision notes free of cost from the Vedantu website (

6. What trends are radically reshaping business by contracting mainly non-core activities to third parties to discuss its need in today's world?

A trend that is radically reshaping business by contracting mainly non-core activities to third parties is ‘Outsourcing’.  An increasing number of businesses are turning to outsource as an alternative to in-house work. When a business operation or specific business activity is given to an agency as a contract, it's known as "outsourcing". A formal agreement with a particular agency is required for most companies to outsource security, sanitation, household, and other services. It is cost-effective and enhances the performance of the business.

7. Why does E-business, referred to as the emerging mode of business explain its scope and benefits to business?

Purchase for goods and services online as well as other important business functions are all part of E-business. Electronic business includes planning, organising, marketing, and production functions.

Scopes of E-business:

  • B2B (Business to Business) Commerce

  • B2C (Business to Consumer) Commerce

  • C2C (Consumer to Consumer) Commerce

  • Intra B-Commerce

Benefits of E-business:

  • E-business can be easily established and formed anywhere and doesn’t need an industry setup.

  • It is convenient and flexible.

  • Anyone across the globe can access E-business.

  • It offers fast and rapid service.