Which of the Following Is Not an Effect That E-Commerce

question 80

Multiple Choice

Which of the following is not an effect that E-commerce has had on organizations?

• A) E-commerce enables smaller businesses to operate in areas dominated by larger companies.
• B) E-commerce increases the number of potential customers to whom the company can market its products.
• C) E-commerce is a costly medium for increasing market share.
• D) E-commerce removes many barriers for start-up businesses.
• E) E-commerce makes it easy to reach customers around the world.

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Definitions:

Strike Price

The fixed price at which the owner of an option can purchase (call) or sell (put) the underlying asset or security.

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a specified amount of an asset at a predetermined price within a specific time frame.

Hedge Ratios

A mathematical approach to minimizing risk by determining the optimal proportion of positions needed to offset potential losses.

Long Puts

An option strategy involving the purchase of put options, with the expectation that the underlying asset will decrease in value, allowing the holder to sell at a higher strike price.