Which of the Following Is True About Networks

question 39

Multiple Choice

Which of the following is true about networks?

• A)Networks are neither formal organizations with clearly defined hierarchical structures nor impersonal, decentralized markets.
• B)In networks, buyers and sellers share no linkages and rarely interact with each other.
• C)In a network, continued interaction among partners leads to competition and rivalry that bring down productivity.
• D)Networks represent the economically beneficial short-term relationships the firm undertakes with other business entities.

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Definitions:

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable interest rate until the principal amount is repaid.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.

Interest Expense

The expense recorded by a business for the funds it has borrowed, categorized as a non-operating expense in the income statement.

Interest-Bearing Note

A debt instrument that obligates the issuer to pay interest to the holder, in addition to repaying principal at maturity.