The Use of E-Commerce to Allow Firms to Reduce the Costs

question 18

Multiple Choice

The use of e-commerce to allow firms to reduce the costs of processing transactions while improving their supply-chain management skills and tightening the control of their inventories is beginning to replace

• A) outsourcing.
• B) unrelated diversification.
• C) de-integration.
• D) vertical integration.

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Definitions:

Account Payable

Liabilities of a business that are owed to creditors for goods or services purchased on credit.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets.

Accounting Systems

A structured process of collecting, recording, summarizing, and reporting financial transactions for a business or organization.

Common Shares

Equity securities representing ownership interests in a corporation, entitling holders to dividends and certain rights under corporate governance.