Which of the Following Is an Example of Disintermediation

question 81

Multiple Choice

Which of the following is an example of disintermediation?

• A) Anister, a car-manufacturing company, markets most of its four-wheel drives in high altitude regions where vehicles require more power.
• B) Donuts Haven, a fast food chain, expands its menu beyond breakfasts by adding hearty snacks that substitute meals in order to provide competition to the other food chains in the area.
• C) Aubrey Thirst Quencher is a market leader in sports drinks. It expands its market by providing its drinks to working women in urban areas.
• D) Rusicwood, a furniture manufacturing firm, starts selling directly to its customers after experiencing a dip in sales due to channel conflicts between retailers.
• E) A luxury car company creates a hybrid line of automobiles for consumers who are concerned about the environment.

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Definitions:

Cash Disbursements

The total amount of money paid out by a business for all its expenses and investments during a specific period.

Selling Expense

Costs incurred directly from the selling of goods or services, such as sales commissions and advertising expenses.

Sales Collection

The process of receiving payment from customers for goods or services sold, impacting a company's cash flow.

Master Budget

An integrated financial plan that includes all of the individual budgets related to sales, cost of goods sold, operations, inventory, and financing.