The Growth of the Web Has Created Thousands of Online

question 128

Multiple Choice

The growth of the Web has created thousands of online consumption communities. What is the biggest danger of such communities?

• A) the members will feel pressure to conform to certain types of purchase behaviour
• B) the members will receive bad information
• C) the members will become frustrated in their communication efforts
• D) the members will have no sense of belonging
• E) the members of have no sense of mission

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Definitions:

Compensating Balance

A minimum account balance that a firm agrees to maintain in a bank account, often used to secure a loan or line of credit.

Accounts Payable

Short-term liabilities representing amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Factoring

A financial transaction and a type of debtor finance where a business sells its accounts receivable to a third party (the factor) at a discount.

Net Working Capital

measures a company's short-term financial health by subtracting its current liabilities from its current assets, indicating the liquidity available to fund day-to-day operations.