Certified Supply Chain Professional (CSCP) Practice Exam

What defines electronic business (e-business)?

1. Any form of online advertisement

2. Business conducted over an electronic network like the internet

3. Physical transactions handled through online payment

4. Any business that incorporates social media marketing

The correct answer is: Business conducted over an electronic network like the internet

Electronic business, often referred to as e-business, is defined as business that is conducted over an electronic network, such as the internet. This encompasses a wide range of activities, including buying and selling products or services, managing supply chains, and engaging with customers. E-business integrates various technologies, including e-commerce, to facilitate everything from marketing and sales to customer service and data management. The reason this definition is appropriate is that e-business is broader than just transactions; it encompasses various aspects of business operations that leverage electronic platforms and digital communications. This includes not only sales but also customer relationship management, supply chain management, and data analysis, all of which can occur through online channels. The other options present narrower or unrelated concepts. Online advertisements, for example, are just one component of e-business, not a comprehensive definition. Physical transactions managed through online payments do not capture the entire scope of e-business functionalities, as it excludes non-transactional activities like information sharing or online customer support. Similarly, while social media marketing is an important tool within e-business, it does not define the entire spectrum of electronic business activities.