Identify a True Statement About Reintermediation with Reference to E-Tailing

question 31

Multiple Choice

Identify a true statement about reintermediation with reference to e-tailing.

• A) It refers to the design of business models that reintroduce middlemen.
• B) It refers to the design of business models that eliminate middlemen.
• C) It provides ways for clients and firms to conduct business online without human assistance.
• D) It provides ways for clients and firms to conduct business activities in a traditional manner by operating physical locations.
• E) It enables access to Web sites linked to corporate databases in order to provide real-time access to personalized information.

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Definitions:

Balance Sheet Approach

A method for valuing accounts that focuses on determining net realizable values for balance sheet items.

Credit Sales

Sales transactions where the payment is deferred, allowing the buyer to purchase goods or services on credit.

Bad Debts Expense

An expense reported on the income statement, representing accounts receivable that a company does not expect to collect.

Income Statement Approach

A method for creating an adjusting entry for bad debts by estimating uncollectible accounts based on income statement figures.