E-Commerce & IT Management Previous Year Questions

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The balance sheet shows the assets, liabilities and capital of a business on a particular date, so it shows the financial position on that date.

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A Trial Balance lists all ledger balances to check that total debits equal total credits, which tests the arithmetical accuracy of the ledger accounts.

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Information processing covers acquiring, storing, organizing, retrieving, displaying and disseminating information.

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Transplanted real-world models are offline business models moved to the internet, such as mail-order, advertising, subscription and free trial. Freeware, access provision and digital products are native internet models.

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Field reports are written after observing or surveying conditions on site (inspections, surveys, investigations), so they fall under survey reports. Project, sales and annual reports are progress or periodic reports.

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The keyed answer says a meeting report should begin with precise background information about the organisation holding the meeting, before details of the speeches and participants.

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Credit sales = closing debtors + cash collected + discount allowed − opening debtors = 60,000 + 6,00,000 + 10,000 − 50,000 = ₹6,20,000.

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Current ratio = current assets ÷ current liabilities. It measures short-term liquidity, that is, the ability to pay short-term debts.

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The P/E ratio = market price per share ÷ earnings per share. It shows how many rupees investors pay for each rupee of earnings.

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A business plan sets out the new business's goals, strategy, target market, operations and financial projections. MoA, AoA and the Certificate of Incorporation are legal company documents.

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The debt-to-equity ratio compares borrowed funds with owners' funds. A high ratio means heavy borrowing, with more fixed interest burden and higher financial risk.

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EVA = NOPAT − (capital employed × cost of capital). It measures the value a company creates above the cost of the capital it uses.

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Real accounts (assets) follow the rule: debit what comes in and credit what goes out. "Debit the receiver, credit the giver" is for personal accounts, and expenses/incomes is the rule for nominal accounts.

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Cost of goods sold = purchases - increase in stock = 1,90,000 - 30,000 = 1,60,000. With 20% gross profit on sales, COGS is 80% of sales, so sales = 2,00,000 and gross profit = 40,000.

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Only the rent for the current year is income: 2,50,000 - 50,000 = 2,00,000 goes to the P&L account. Rent received in advance is unearned income, a current liability in the balance sheet.

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Manufacturing is a secondary (industrial) activity because it converts raw materials into goods. Transport, warehousing and insurance are tertiary activities (aids to trade/services).

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Decentralisation is the systematic delegation of authority to all levels of management, so delegation leads to decentralisation. Centralisation keeps authority at the top and reduces autonomy.

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Bootstrapping means starting and growing a business with the founder's own savings and revenue, without external capital such as venture capital or loans.

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The representational quality of information covers interpretability, ease of understanding, format and concise or consistent representation (coherence and compatibility).

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This is the AICPA definition of accounting, used for financial accounting: recording, classifying and summarising financial transactions in money terms and interpreting the results.

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Strategic information supports long-term policy decisions about business objectives and how well they are being met. It is used by top management.

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MIS components are people, hardware, software, data and procedures. 'Education procedures' is not a component.

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In e-commerce models such as B2B and B2C, 'B' stands for business organisations such as producers, manufacturers and sellers. 'C' is consumers and 'G' is government.

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Trade is the basic business activity of buying and selling goods and services.

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Cash or goods withdrawn by the owner for personal use are called drawings. They reduce the owner's capital.

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In the source's classification, businesses are experience driven, efficiency driven or expert driven. "Expense driven" is not one of the types.

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K. Vaitheeswaran, founder of Indiaplaza (1999), is known as the father of e-commerce in India.

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An organisation structure defines how people, work (tasks) and resources are related, with roles, authority and reporting lines.

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A sole proprietorship is a business owned, run and controlled by one person who takes all profit and risk.

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Copyright gives the creator legal rights over their original work, enabling them to earn recognition or financial benefit from its use.

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Accounting conventions are customs and traditions followed by accountants, such as consistency, conservatism, materiality and full disclosure.

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Partnership, sole proprietorship and joint Hindu family business are forms of business organisation. A contract is a legal agreement, not a form of organisation.

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In MIS design, information comes from internal sources (company records and operations) and external sources (market, government, competitors).

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Sole proprietorship, owned and run by one person, is the most common business form because it is easy and cheap to set up and has few legal formalities.

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Operations research applies mathematical methods such as linear programming, queuing theory and simulation to decision-making problems, so it is a branch of applied mathematics.

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An organisation is defined as a formal social unit (a structured group of people) set up to achieve specific goals. Management and marketing are functions within it.

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Commerce covers the buying and selling of goods and services, especially on a large scale, together with supporting activities such as transport, banking and insurance.

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OLX is a consumer-to-consumer (C2C) marketplace where individuals sell used goods directly to other individuals, with the platform acting only as an intermediary.

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A company is a separate legal entity, so the liability of its members (shareholders) is limited to the unpaid amount on their shares. Sole proprietors and ordinary partners have unlimited liability.

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Fixed assets (non-current assets such as land, buildings and machinery) are held for long-term use, more than one year, in the business rather than for resale.