The Introduction of a New Intermediary, Such as a Fee-For-Transaction

question 51

Multiple Choice

The introduction of a new intermediary, such as a fee-for-transaction Web site, into a value chain is called _____.

• A) disinterment
• B) reintermediation
• C) reinterpretation
• D) disintermediation

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Definitions:

Additional Paid-in Capital

The amount of money shareholders have invested in the company above the nominal value of the shares.

Common Stock

A type of equity security representing ownership in a corporation; holders may receive dividends and have voting rights at shareholders' meetings.

$1 Par Value

The nominal or face value assigned to a share of stock, with no necessary relation to the market value, set at $1 per share.

Earnings Per Share

A financial metric that divides net income by the number of outstanding shares, indicating the profit available to each share of stock.