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Get access to the detailed solutions to the previous year's questions asked in XAT exam.
Taking a business decision just because of some words on a sign is not prudent; hence, option A can be rejected.
Option B can be ignored as the outside villagers form a very insignificant portion of the total revenues.
Option C can be rejected as even though the delivery fee has been charged since last year, it has not improved The Small Shop's business.
Option D does not mention the kind of business that is being started by the mentioned person.
Option E is the best choice, as the villagers form the majority of the shop's business and if they prefer the shop from e-commerce, then it is a reason to keep the discount.
Hence, the answer is option D.