Travel Websites Such as Travelocity Tend to Offer Reservation Services

question 84

Multiple Choice

Travel websites such as Travelocity tend to offer reservation services for multiple travel modes.This is because

• A) the firms have contractual obligations to offer reservations for airlines and railroads, for example.
• B) the firms have statutory obligations to offer reservations for airlines and railroads, for example.
• C) once the firm has the reservation technology for airlines, there are economies of scale in offering the same service for railroads.
• D) once the firm has the reservation technology for airlines, there are economies of scope in offering the same service for railroads.

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Definitions:

Supplies

Items used in the daily operations of a business, not directly tied to the product or service being sold.

Depreciation Expense

The distribution of a physical asset's cost over its lifespan to account for depreciation or becoming outdated.

Building

A structure with a roof and walls, such as a house, school, or factory, constructed as a place for people to live, work, or carry out activities.

Adjustment

A change made to a financial record to correct or update the information.