Level 2
Unit No:
Guided learning hours:
32 hours

Assessment Guidance

Portfolio of Evidence


The aim of this unit is to help learners understand the benefits of conducting business on-line and to consider the advantages and disadvantages of doing so.

Unit Learning Outcomes


Know about online business activities.

Learning Outcome 1: Indicative Content  

Examples of online business may include:

  • online transactions
  • interactive customisation
  • marketing products and services through passive brochure ware
  • compliment other services offered by business

Assessment Criteria

  • 1.1
    Describe how different business organisations operate online.


Understand issues related to online business.

Learning Outcome 2: Indicative Content  

Set up issues may include:

  • sufficient financial support
  • knowing the market 
  • access to appropriate resources and equipment
  • domain names
  • technical skills

Examples of operational risk include:

  • ensuring payment security
  • viruses
  • out of date information
  • failure of hardware and software

Examples of the basic principles of legislation, directives and regulations may include;

  • ensuring security of customer personal information
  • maintain financial security
  • monitor inappropriate use of software

Assessment Criteria

  • 2.1
    Explain the issues related to setting up online businesses
  • 2.2
    Explain the operational risks to a business organisation operating online.
  • 2.3
    Outline the basic principles of legislation, directives and regulations related to online business.


Know the impact of an online business presence.

Learning Outcome 3: Indicative Content  

Market benefits may include:

  • way to gather information
  • respond quickly to customer requests
  • national and international markets
  • able to access new markets more easily
  • costs 

Advantages of an on-line presence may include:

  • national and international markets eg available 24 hours a day, offer information in different languages
  • respond quickly to customer interest
  • monitor competition

Disadvantages/challenges of an on-line presence may include:

  • information needed in different languages
  • speedy response required to customers
  • hackers/viruses
  • technical skills needed
  • need to keep up to date

Success of on-line businesses may be measured through:

  • sales figures
  • number of 'hits' on the website
  • follow-up business as a result of 'hits'

Impact of online business on society may include:

  • isolation
  • job losses in areas where on-line business is successful eg food shopping online in rural areas
  • breakdown of communities
  • effects on work-life balance 

Assessment Criteria

  • 3.1
    Describe the benefits of marketing a product or service online
  • 3.2
    Describe any disadvantages of an online business presence.
  • 3.3
    Explain how the success of an online business presence can be measured.
  • 3.4
    Outline the impact of online businesses on society in general.