Disintermediation ______

question 16

Multiple Choice

Disintermediation ______.

• A)is used to prevent information distortion in a supply chain
• B)refers to a downstream supply chain member selling directly to an upstream supply chain member
• C)is one method to avoid or reduce seasonality of demand
• D)is when a supplier of raw materials sells products directly to the end consumer

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Definitions:

Collateral

An asset pledged as security for repayment of a loan, to be forfeited in case of default.

Probability of Payment

The likelihood or chance that a borrower will meet their debt obligations on time.

Cash Discount Period

The time frame within which a purchaser can pay less than the full invoice amount due to taking advantage of a cash discount offered by the seller.

Credit Period

The duration of time a buyer is allowed to pay for goods or services after the delivery date.