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Multiple Choice
Small businesses can use nonstore retailing methods such as the internet to:
A
reach a wider customer base beyond their local area
B
eliminate all competition in the market
C
reduce the need for any marketing efforts
D
avoid complying with government regulations
Verified step by step guidance
1
Understand the concept of nonstore retailing, which refers to selling goods and services outside of traditional physical stores, such as through the internet, catalogs, or direct sales.
Recognize that one key advantage of nonstore retailing, especially via the internet, is the ability to reach customers beyond the immediate geographic location of the business.
Consider why the other options are less likely: eliminating all competition is unrealistic because the internet increases market access for many sellers; reducing marketing efforts is unlikely since online presence often requires marketing; and avoiding government regulations is not true as businesses must still comply with laws regardless of sales method.
Conclude that the primary benefit for small businesses using internet retailing is expanding their customer base beyond local boundaries.
Summarize that the correct understanding is that nonstore retailing helps small businesses reach a wider customer base beyond their local area.