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.

Question

Quizplus · Accepted Answer

Information technology can help firms expand in size, but this is not a direct impact like the reduction of costs or improvement in efficiency. The other options directly relate to cost reduction and efficiency improvements facilitated by IT.

Which of the Following Statements Is Not True About Information