Which of the Following Statements Is True About E-Commerce

question 13

Multiple Choice

Which of the following statements is true about e-commerce?

• A) It results in an increase in inventory-carrying costs.
• B) It improves the flow of price data.
• C) It decreases market efficiency.
• D) It reduces sharing of consumer data.

Identify the protective measures and potential losses associated with various positions in futures contracts (long and short).

Describe cross-hedging and its application in managing risks associated with interest rates and bond portfolios.

Differentiate between the types of futures contracts (e.g., commodity, financial) and their specific characteristics and uses.

Comprehend the role of the exchange and clearing corporation in mitigating credit risk and ensuring the integrity of futures markets.

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Definitions:

Pro Rata

A method of allocating an amount proportionally based on a share of some total, such as time or quantity.

Financially Sound

Describes a state in which an entity is stable, profitable, and has a strong balance sheet.

Correctable Problems

Issues or challenges within an organization that can be resolved or improved upon through appropriate measures.

Target Company

A company that is the subject of a merger or acquisition by another company, often referred to in the context of takeover bids.