GCSE Business Practice Exam 2025 - Free General Certificate of Secondary Education Practice Questions and Study Guide

E-commerce is defined specifically as the buying and selling of goods over the internet. This encompasses a wide range of transactions, including retail purchases by consumers, business-to-business sales, and various forms of online marketplaces. The essence of e-commerce lies in the digital exchange that enables consumers and businesses to conduct transactions without the limitations of physical locations.

The other choices describe different concepts that are not inherently linked to e-commerce. Outsourcing business functions, for instance, pertains to delegating certain operations or services to external parties, which does not necessarily involve the internet or online transactions. The trade of services between businesses refers to business-to-business interactions but is not limited to online platforms, and it does not encompass the aspect of buying and selling goods directly. Lastly, the interaction of businesses with government typically involves regulatory affairs and compliance issues, which again is distinct from the definition of e-commerce focused solely on internet-based commercial transactions.