Why Does Electronic Commerce Benefit Small Firms

question 65

Multiple Choice

Why does electronic commerce benefit small firms?

• A) Small firms are often "tech savvy", which allows them to embrace innovations more quickly.
• B) Large firms have complex business plans that fail to direct investment toward the Internet.
• C) Without e-commerce, small firms often lack the resources to expand beyond local markets.
• D) The government has committed significant resources to encourage small firms to go online.

---

Definitions:

Account Category

A classification within the financial statements that helps in organizing accounts, such as assets, liabilities, equity, revenues, and expenses.

Controlling Account

An account in the general ledger that summarizes the total amounts recorded in all subsidiary ledger accounts.

Subsidiary Ledger

A ledger containing the details of transactions for a specific account, which then summarizes into a single amount in the general ledger.

Alphabetical Order

A system of arranging items according to the sequence of the letters in the alphabet.