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Difficulty: MediumConcept and Importance of ICT in Business

The integration of Information and Communication Technology (ICT) into modern commercial operations decreases transaction processing speed and inflates operational overhead due to the costs of digital network maintenance.

Answer: Answer

Answer

False. ICT enhances transaction speed and lowers overall operational overhead for commercial enterprises.
The claim is false because ICT dramatically improves the speed, accuracy, and efficiency of business transactions while lowering overall administrative and operational expenses in the long run.

Step-by-Step Solution

1
Analyze the statement's claim regarding ICT's effect on business transaction speed and operational costs.
The statement claims ICT decreases speed and inflates operational overhead.
Evaluating core benefits against the statement's assertion.
2
Recall the fundamental functions and advantages of ICT in modern commercial practices.
ICT tools such as Electronic Funds Transfer (EFT), Electronic Data Interchange (EDI), and online payment gateways enable real-time processing and automate routine tasks.
To verify whether ICT speeds up or slows down commercial activities.
3
Evaluate the cost implications of implementing ICT in commerce.
While initial infrastructure setup requires capital investment, ICT reduces overall operational costs through paperless documentation, lower inventory holding costs, and automated management.
To determine whether maintenance costs outweigh long-term operational savings.

Key Concept

Concept and Importance of ICT in Business
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Concept and Importance of ICT in Business

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