The impact of e-commerce on vendors are:
(i) Vendors could have a wider access to customers across the globe.
(ii) This helps minimise the cost of operating business due to direct distribution of goods to end consumers thanks to minimum invention of intermediaries.
(iii) Vendor could interact with multiple buyers and sellers.
(iv) Business concerns could orient marketing efforts towards targeted customers.

The factors considered for investing in a franchise are:
(i) Improven versus proven franchise
(ii) Financial stability of franchise
(iii) Potential market for the new franchise
(iv) Profit potential for a new franchise

The categories of franchise are:
(i) A product or service with an established market and favourable image
(ii) A patented formula or design
(iii) Trade marks
(iv) A financial management system for controlling costs and monitoring revenues and profits
(v) Managerial advice from experts in the field
(vi) Head office services

A core activity involves experience, expertise, efficiency and even investment in the field of specialization.
Non- Core activities can be outsourced to outsiders who are specialists in their area of operation.

Logistics management is defined as "Design and operation of the physical, managerial and informational systems needed to allow goods to overcome time and space (from the producer to consumer)".

(i) BPO (Business Process outsourcing) means getting contractual services of external companies or group of companies to complete special work or process of a company.
(ii) For example : Call Centres, data entry etc. This reduces the expenditure by using cheap labour available in developing countries like Indian, China.

Transferring Non Core Activities to Outsiders:
Companies can outsource those non core activities functions like maintenance, housekeeping, gardening, etc. to outsiders, depending upon the nature of the business and the activities are identified as core or non core activities.
Outsourcing Involves Contracting:
As the companies start outsourcing their activities focusing on their main business, the outside agencies enter into an agreement with the company to perform the routine activities on a contractual basis.
Operational Efficiency through Outsourcing:
Companies specialize in their business system as the time available at their disposal can be utilized for the core activities leading to efficiency improving quality of the product.
Improved Customers Satisfaction:
The number of customers can be increased through timely delivery and high quality services. Outsourcing helps in customer satisfaction and results in repetitive purchase of the same product.
Cost Reduction:
The only way to survive and earn profit is through global competitiveness by fixing a competitive price. Division of labour and specialization along with good quality product reduces the cost. For example outsourcing of research and development, manufacturing, software development etc.

Characteristics	Factoring	Forfeiting
Basis of financing	Financing is dependent on exporter's credit standing	Financing is dependent on the availing bank's financial standing
Cost	Cost is borne by the seller	Cost is borne by the overseas buyer
Suitability	For transaction of short-term maturity period	For transactions of medium-term maturity period
Extend of financing	Only a certain percent of receivables factored is advanced	Full finance is available
Risk	Risk can be transferred to seller	All risks borne by the forfeiter

Reduced risk:
The franchisee will acquire the right of running an already established business, thus eliminating the risk of starting a new business.
Business expansion:
Franchising provides an opportunity to expand business at regional, national and global levels without incurring additional expenditure. Thus rapid growth of franchisor's business is facilitated. 
Cost of advertising:
The cost of advertising for the franchisor will be reduced since this cost will be shared by the franchisee. Moreover, it enables the franchisor to reap the benefits of increased visibility across regional and national boundaries.
Operational support:
The franchisee is provided assistance in not only obtaining finance, but also in deciding business location, decor /design, staff training, and handling day to day operations.

(i) Full service factoring or Without recourse factoring :
When a factor agrees to provide complete set of services which includes financing, maintenance of sales ledger, debt collection at his own risk, and providing Consultancy services as and when necessary, it is called as full servicing factoring.
(ii) With recourse factoring:
(1) When the factor does not undertake credit risk, it is known as with recourse factoring.
(2) In case the debtor fails to make the payment on due to date, it is assigned back to the firm by the factor.
(3) Here the responsibility of collecting the amount lies with the selling firm.
(ii) Maturity Factoring :
In this type, the factor agrees to finance the firm only after collecting the amount on maturity from debtors.
(iv) International Factoring :
When the claims of an Exporter are assigned to a financial institution and the finance is advanced on the basis of export invoice it is called as International factoring.

1. Vendors could have a wider access to customers across the globe.
2. This helps to minimize the cost of operating business due to direct distribution of goods to end consumers thanks to minimum invention of intermediaries.
3. Vender could interact with multiple buyers and sellers.
4. Business concerns could orient marketing efforts towards targeted customers.

1. Shippers (Users of logistics),
2. Suppliers (of logistics services),
3. Carriers(rail, road, air, water, pipeline, rope-way),
4. Warehouse providers,
5. Frieght Forwarders,
6. Terminal Operatros (ports, .stevedores etc),
7. Government (regulator of logistics).

(i) Transferring Non-core activities to outsiders :
Companies can outsource those non-core activities functions like maintenance, housekeeping, gardening, etc. to outsiders, depending upon the nature of the business. The activities are identified as core or non-core activities.
(ii) Outsourcing involves contracting:
As the companies start outsourcing, their activities focusing on their main business, the outside agencies enter into an agreement with the company to perform the routine activities on a contractual basis.
(iii) Operational efficiency through Outsourcing:
Companies specialize in their business system as the time available at their disposal can be utilized for the core activities leading to efficiency improving quality of the product. 
(iv) Improved Customers Satisfaction :
The number of customers can be increased through timely delivery and high quality services.
(v) Cost Reduction :
The only way to survive and earn profit is through global competitiveness by fixing a competitive price.

SL. No.1 Characteristics Factoring Forfaiting 1. Basis of financing Financing is dependent on exporter's credit standing. Financing is dependent on the availing bank's financial standing 2. Cost Cost is borne by the seller. Cost is borne by the overseas buyer 3. Suitability For transactions of short-term maturity period. For transactions of medium-term maturity period 4. Extent of Financing Only a certain per cent of receivables factored is advanced. Full finance is available. 5. Risk Risk can be transferred to seller All risks are borne by the forfeiter