CLO-002 Business Principles OF Cloud Environments Practice Question
An organization is calculating the cost of cloud vs. on-premises. What is the benefit of 'economies of scale' provided by the cloud vendor?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Lower unit costs for resources
Cloud providers pass on savings to customers because they buy hardware and power at massive scales.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Unlimited bandwidth
Why it's wrong here
Bandwidth is never unlimited; it is always metered.
- ✗
Elimination of all maintenance
Why it's wrong here
Some maintenance remains, such as software and OS management.
- ✗
Guaranteed 100% uptime
Why it's wrong here
No provider guarantees 100% uptime.
- ✓
Lower unit costs for resources
Why this is correct
Massive purchasing power allows providers to offer lower resource prices than an individual firm could achieve.
About these practice questions
This CLO-002 question is part of Courseiva's 211-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed August 2026 · checked against the official CompTIA exam blueprint
This CLO-002 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CLO-002 exam.