In the Context of Business-To-Business (B2B) Markets, Which of the Following

question 109

Multiple Choice

In the context of business-to-business (B2B) markets, which of the following statements is true of e-marketplaces?

• A) They require expensive and dedicated connections between firms.
• B) Compared to older methods, they increase the time, effort, and cost of doing business for both buyers and sellers.
• C) The only service provided by them is simple market trading.
• D) They enable sellers and buyers to contact and negotiate with a large number of market participants on the other side of the market.

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Definitions:

Capital Requirement

The minimum amount of financial resources that a firm needs to conduct its business activities, often regulated in industries like banking.

Investment Banks

Financial institutions that assist individuals, corporations, and governments in raising capital by underwriting and/or acting as the client's agent in securities issuance.

Tax Deductibility

Refers to the ability to subtract an expense from one's taxable income, thereby reducing the overall tax liability.

Equity Loans

These are loans where the borrowed amount is secured by the borrower's equity in their property, typically a home.