Investigating Management Information Systems (MIS) Practice Test

The key benefit that reflects Square Inc.'s value for smaller vendors is that it allowed them to accept credit and debit cards without the need for a heavy investment. This is significant because traditionally, only larger businesses had the means to establish point-of-sale systems that could process card payments, which often involved significant initial costs for equipment and setup.

Square's innovative approach democratized payment processing by providing small businesses with an affordable and easy-to-use platform. By offering a simple card reader that could be connected to a mobile device, along with a user-friendly app for managing transactions, Square empowered smaller vendors to compete alongside larger retailers. This capability significantly enhanced their sales potential, allowing them to attract more customers who prefer to pay with cards rather than cash.

The other options do not accurately represent the offerings of Square Inc. or the realities of payment processing for smaller vendors. For instance, stating that only larger vendors could use it effectively is inaccurate, as Square was specifically designed to cater to smaller businesses. Additionally, the assertion that it only worked with cash transactions contradicts the core functionality of Square, which is centered on card transactions. Finally, the idea that it did not charge any fees per transaction is misleading; Square does charge a transaction fee, but it is generally considered