Question

Many companies use intermediaries or trading assistants instead of implementing e-auctions themselves for each of the following reasons EXCEPT:

1) The company name is not widely recognized.
2) To bring many more buyers to the auction.
3) To avoid tax and legal fees.
4) Costs of auction intermediaries or assistants are less than the costs of physical auctions.

Answer 1

Companies use intermediaries or trading assistants instead of implementing e-auctions for a variety of reasons, including attracting more buyers and reducing costs.

Step-by-step explanation:

The reason many companies use intermediaries or trading assistants instead of implementing e-auctions themselves is not to avoid tax and legal fees.

Intermediaries or trading assistants are often used to bring many more buyers to the auction, as they have established networks and connections. They can attract a wider pool of potential buyers, increasing the chances of a successful auction. Additionally, the costs of auction intermediaries or assistants are often less than the costs associated with physical auctions, making it a more cost-effective option for companies.