Which of the Following Predictions About the Impact of E-Commerce

question 115

Multiple Choice

Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be most accurate?

• A) E-commerce will have little impact on most traditional businesses, because only a few types of products can be sold effectively over the Internet.
• B) Traditional brick-and-mortar firms will enter the e-commerce market by creating their own web sites.
• C) E-commerce will prove to be very successful in competing against traditional firms in B2C markets, but will have much less success in B2B markets.
• D) Brick-and-mortar businesses will cease to exist within twenty years.

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Definitions:

Government Transfers

Payments made by the government to individuals, without any goods or services being received in return.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary depending on income level, type of good, or jurisdiction.

Income Mobility

Relates to the ability of individuals or families to move up or down the economic ladder over time.

Economic Ladder

A metaphorical representation of the differing levels of economic prosperity among individuals in a society, indicating potential for upward mobility.