Introduction to Computers and Business Applications: Basics, Advantages and Limitations Questions

Question 1

What is hardware?

Accepted Answer

Hardware refers to physical parts of a computer system.

Question 2

What is software?

Accepted Answer

Software is a set of programs/instructions that tell the computer what to do.

Question 3

What is GIGO?

Accepted Answer

GIGO means Garbage In, Garbage Out—wrong input leads to wrong output.

Question 4

Define computer.

Accepted Answer

A computer is an electronic device that accepts data, processes it and produces information as output, with storage.

Question 5

Expand CPU.

Accepted Answer

CPU stands for Central Processing Unit.

Question 6

State one use of computers in business.

Accepted Answer

Computers are used for accounting and preparation of reports in business.

Question 7

Differentiate between hardware and software (any three points).

Accepted Answer

Hardware is physical and can be touched; software is intangible programs. Hardware is manufactured; software is developed. Hardware needs software to work; software runs on hardware.

Question 8

Write any three characteristics of computers.

Accepted Answer

Speed, accuracy, storage, automation, versatility and diligence are characteristics (any three).

Question 9

Write any three applications of computers in business.

Accepted Answer

Computers are used in accounting, inventory management, payroll/HR, banking, marketing/CRM and communication (any three).

Question 10

Write any three advantages of computerisation in business.

Accepted Answer

Faster processing, accurate calculations, automation, better storage and timely reporting are advantages (any three).

Question 11

Write any three limitations/risks of computerisation.

Accepted Answer

GIGO errors, security threats (virus/hacking), dependence on electricity/internet, cost and need for trained staff are limitations (any three).

Question 12

List any three input devices and any two output devices.

Accepted Answer

Input: keyboard, mouse, scanner. Output: monitor, printer (examples).

Question 13

Explain the components of a computer system.

Accepted Answer

A computer system is not only a machine; it is a complete set-up that works together to process information.

Main components:
1) Hardware: physical parts such as CPU, keyboard, monitor, printer, storage devices.
2) Software: programs that instruct hardware. It includes system software (OS) and application software (Word, Excel, etc.).
3) Data: raw facts and figures entered into the computer for processing.
4) Users (peopleware): people who operate, manage and use the system (clerks, managers, IT staff).
5) Procedures: rules and steps for correct use of system (backup rules, security policies, file naming).

All these components together make the computer system useful for business work.

Question 14

Explain applications of computers in business.

Accepted Answer

Computers are widely used in business because they handle large data quickly and accurately.

Major business applications:
- Accounting and finance: billing, ledger, GST calculations, financial statements.
- Inventory management: stock records, reorder levels, barcode systems.
- Payroll and HR: salary calculation, attendance, employee records.
- Banking and payments: online banking, NEFT/UPI, digital transactions.
- Marketing and CRM: customer databases, campaigns, feedback management.
- Communication: email, video meetings, online collaboration.
- Decision support: reports, dashboards and MIS for management decisions.

Thus computer applications improve speed, accuracy, record keeping and decision-making in business.

Question 15

Explain advantages and limitations of computerisation in business.

Accepted Answer

Computerisation in business means using computers to perform business tasks like accounting, inventory, payroll and reporting.

Advantages:
- speed: faster processing of transactions
- accuracy: correct calculations if input is correct
- automation: repetitive tasks can be automated
- storage: large data storage and quick retrieval
- better reporting and decision-making through MIS

Limitations/risks:
- GIGO: wrong input/program gives wrong output
- security risks: virus, hacking, data theft
- dependence on electricity and internet
- cost of hardware/software and maintenance
- need for trained staff

Therefore businesses must use computers with proper controls, training and security measures.

Introduction to Computers and Business Applications: Basics, Advantages and Limitations

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