What Functions Do Intermediaries Serve? How Is the Concept of Disintermediation

question 72

Essay

What functions do intermediaries serve? How is the concept of disintermediation related to Porter's Five Forces? Is disintermediation inevitable for all industries (why or why not)?

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Definitions:

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs associated with production or acquisition of goods.

Depreciable Cost

Depreciable cost is the cost of a fixed asset that is subject to depreciation over its useful life, excluding salvage value.

Depreciation Rate

A percentage rate used to calculate the decrease in value of an asset over time for accounting and tax purposes.

Units-of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on the units it produces or hours it operates.