State any three differences between e-business and traditional business.
The three differences between e-business and traditional business are as follows:
Firstly, regarding Ease of formation, a traditional business is difficult to form, whereas an e-business is simple to establish. Secondly, in terms of Physical presence, traditional business requires a physical location to operate, while e-business does not require physical presence.
Thirdly, the Operating cost in traditional business is high due to fixed charges associated with investment in procurement, storage, and marketing facilities. Conversely, e-business has low operating costs as it relies on a network of relationships rather than ownership of resources.
Explanation
The answer is derived directly from Table 5.1 in the provided context. Three distinct points (Ease of formation, Physical presence, and Operating cost) were selected to satisfy the 3-mark requirement. The explanation contrasts the 'Difficult/Required/High' nature of traditional business with the 'Simple/Not required/Low' nature of e-business as per the text.