Which of the following best describes how e-business differs from traditional business?

• A. E-business does not require any form of customer service, whereas traditional business does.
• B. E-business is limited to local markets, while traditional business operates globally.
• C. E-business only sells physical products, while traditional business only sells digital products.
• D. E-business primarily conducts transactions and operations over electronic networks, while traditional business relies on face-to-face interactions and physical locations.

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the definitions of e-business and traditional business. E-business refers to conducting business processes on the internet or other electronic networks, while traditional business typically involves physical stores and face-to-face interactions.
2. Step 2: Identify the key differences in how transactions and operations are conducted. E-business uses electronic means such as websites, online platforms, and digital communication, whereas traditional business relies on in-person customer service and physical locations.
3. Step 3: Evaluate the given options by comparing them to the core characteristics of e-business and traditional business. For example, e-business does require customer service, but it is often provided digitally, so the first option is incorrect.
4. Step 4: Recognize that e-business is not limited to local markets; it can operate globally just like traditional business, so the second option is incorrect.
5. Step 5: Understand that e-business can sell both physical and digital products, and traditional business can also sell both types, so the third option is incorrect. The best description is that e-business primarily conducts transactions electronically, while traditional business relies on physical interactions.