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.

Question

Quizplus · Accepted Answer

Electronic commerce allows small firms to expand their customer base beyond their local markets without the need for expensive physical store locations or traditional advertising. This can lead to cost savings and increased revenue for small businesses. Additionally, e-commerce platforms often have lower barriers to entry, making it easier for smaller firms to establish an online presence compared to traditional brick-and-mortar stores.

Why Does Electronic Commerce Benefit Small Firms