The Internet Has Made Transactions Between Businesses (B2B Trading)fast and Easy.Any

question 3

Multiple Choice

The Internet has made transactions between businesses (B2B trading) fast and easy.Any business in any location can access specialized knowledge,labor,and materials.It is likely that these virtual economic communities will result in

• A)internal economies of scale.
• B)government intervention and regulation.
• C)suppression of innovations and collusive behavior,driving up prices.
• D)external economies of scale.
• E)consolidation of industries into a small number of powerful firms.

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Definitions:

Return on Investment (ROI)

An evaluation metric that assesses the effectiveness or financial gain of an investment by dividing the net earnings by the initial investment cost.

Residual Income

The net operating income that an investment center earns above the minimum required return on its operating assets.

Non-Value-Added Time

Time spent on production or administrative activities that do not contribute to the customer's value perception of the product or service.

ISO 9000 Standards

A set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements needed to maintain an efficient quality system.