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SAI INTERNATIONAL SCHOOL

CLASSS XI

SUBJECT: BUSINESS STUDIES

CHAPTER -5, EMERGING MODES OF BUSINESS

Topics: Benefits, limitations of e-business

(Lesson note -22)

BENEFITS OF e-BUSINESS

i. Ease of formation and lower investment requirements:

Unlike a host of procedural requirements for setting up an industry, e-
business is relatively easy to start. The benefits of internet technology
accrue to big or small business alike. In fact, internet is responsible for
the popularity of the phrase: ‘networked individuals and firms are

more efficient than networthed individuals.’ This means that even if
you do not have much of the investment (net worth) but have
contacts (network), you can do fabulous business.

ii. Convenience:

Internet offers the convenience of ‘24 hours 7 days a week 365
days’ a year business. Such flexibility is available even to the

organizational personnel whereby they can do work from wherever they
are, and whenever they may want to do it. So such flexibility is
available even to the organizational personnel whereby they can do
work from wherever they are, and whenever they may want to do it.

iii. Speed:

As already noted, much of the buying or selling involves exchange of
information that internet allows at the click of a mouse. This benefit

becomes all the more attractive in the case of information-intensive
products such as software, movies, music, e-books and journals that
can even be delivered online. Cycle time, i.e., the time taken to complete