Which of the Following Statements About E-Marketplaces That Act as Independent

question 18

Multiple Choice

Which of the following statements about e-marketplaces that act as independent trading communities is false?

• A) These trading communities allow buyers to easily compare offerings from various sellers.
• B) Independent trading communities charge a fee for their service.
• C) Independent trading communities often consist of thousands of geographically dispersed buyers and sellers.
• D) This independent type of trading community is favored by large companies.
• E) Independent trading communities often operate in an environment where demand and supply fluctuations cause volatile prices.

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Definitions:

Markup Percentage

The percentage added to the cost of goods to cover overhead and profit, calculated as markup divided by the cost of the goods.

Selling Price

The amount of money for which a product is sold to the customer; it may include costs such as manufacturing, distribution, and markup.

Traceable Fixed Expense

Fixed costs that can be directly linked to a specific product, department, or segment and would disappear if the product, department, or segment were eliminated.

Net Operating Income

The total income generated from normal business operations after deducting operating expenses but before taxes and interest.