ITPEC FE Morning October 2020 Question 71

Individuals sharing, lending or borrowing unused assets through social media — the sharing economy puts idle assets to use, mainly between individuals.

In a sharing economy a platform matches people who own an underused asset (the paper's "unemployed assets"), such as a room, a car, a tool or spare time, with people who need it for a while. The exchange is mostly between individuals, and ratings and community functions build the trust it needs. Room-sharing and ride-sharing services are the usual examples.

Answer (d)

Why not others:

• •(a) — managing renewable energy and urban infrastructure with IT to improve life and sustain growth is a smart city
• •(b) — IT raising productivity across the economy, with SCM closing the gap between supply and demand for growth without inflation, is the "new economy" idea
• •(c) — combining over-the-counter and Internet sales to use the strengths of both is click-and-mortar (omni-channel) retailing

Key rule: The sharing economy uses idle assets that individuals own, lent to other individuals through a platform, while ownership stays with the owner.

Business Industry · AI-written, may contain errors