Which of the Following Statements Is Not True About Information

question 55

Multiple Choice

Which of the following statements is not true about information technology's impacts on business firms?

• A) It helps firms expand in size.
• B) It helps firms lower the cost of market participation.
• C) It helps reduce internal management costs.
• D) It helps reduce transaction costs.

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Definitions:

Capital Expenditures Budget

A plan for a company's spending on long-term assets, such as buildings, equipment, and machinery, over a certain period.

Inventory Policy

Inventory policy refers to the set of guidelines or rules a company follows to manage its inventory levels, ordering, storage, and replenishment to meet customer demand efficiently.

Projected Sales

The estimated revenue that a company expects to generate from goods or services over a specific period.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods that a retailer plans to buy over a certain period to maintain a desired inventory level.