Which of the Following Is True About E-Commerce

question 108

Multiple Choice

Which of the following is true about e-commerce?

• A) E-commerce results in an increase in inventory-carrying costs.
• B) E-commerce facilitates better measurement of price elasticity.
• C) E-commerce decreases market efficiency.
• D) E-commerce reduces the flow of price data.

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Definitions:

Soft Rationing

Internal limitations set by a company on the amount of funds allocated for new investments or projects.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, demonstrating the proportion of fixed versus variable costs a company has.

Fixed Costs

Expenses that remain constant regardless of how much is produced or sold, including rent, salaries, and insurance costs.

Accounting Break-Even

The point where total sales equal total expenses, and the company makes no profit but also incurs no loss.