All of the Following Are Benefits of Electronically Generating and Transmitting

question 57

Multiple Choice

All of the following are benefits of electronically generating and transmitting purchasing-related documents except _____.

• A) a reduction in the need to ensure higher levels of quality from suppliers
• B) a virtual elimination of paperwork and paperwork handling
• C) improved communication both within the company and with suppliers
• D) a reduction in errors
• E) a reduction in the time spent in by purchasing personnel on processing purchase orders and invoices and more time spent on strategic value-adding purchasing activities

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Definitions:

Authorized Agent

An individual or entity that has been given legal authorization to act on behalf of another person or entity in conducting business or legal affairs.

Drawer

The party that initiates a draft (writes a check, for example), thereby ordering the drawee to pay.

Commercial Money Market

A segment of the financial market where commercial banks, businesses, and government agencies raise funds by issuing short-term debt.

Short-Term Borrowing

Refers to loans or debt obligations that are due for repayment within a short period, typically less than one year.