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Difficulty: EasyE-Commerce and E-Business Models

Electronic commerce (e-commerce) is a broader concept than electronic business (e-business) because e-commerce includes internal operational processes, such as human resource management and inventory tracking, in addition to online trade.

Answer: Answer

Answer

False. Electronic business (e-business) is the overarching concept covering all electronic operational activities of a firm, whereas electronic commerce (e-commerce) specifically refers to online trading transactions.
Electronic business (e-business) is the comprehensive term that includes all automated internal business functions (like enterprise resource planning and customer relationship management) as well as commercial trading. Electronic commerce (e-commerce) is strictly a subset of e-business that focuses on buying and selling products or services via the internet.

Step-by-Step Solution

1
Define the scope of Electronic Business (E-Business)
E-business encompasses all digital activities within an enterprise, including internal operations (HR management, intranet communications, inventory logistics) and external relationships.
Establishing the scope of e-business defines what comprises complete digital business integration.
2
Define the scope of Electronic Commerce (E-Commerce)
E-commerce is a specific subset of e-business focusing on commercial transactions involving the buying and selling of goods or services electronically.
Differentiating e-commerce from e-business highlights their hierarchical structure.
3
Compare the two concepts to evaluate the statement
Since e-business includes e-commerce plus internal non-transactional business operations, e-business is broader than e-commerce. Therefore, the statement is false.
The statement incorrectly reverses the relationship by claiming e-commerce is broader than e-business.

Key Concept

Distinction between E-Commerce and E-Business
Estimated Time:45s
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Topics

E-Commerce and E-Business Models

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