Supplier Power Has Increased Because of the Internet for All

question 7

Multiple Choice

Supplier power has increased because of the Internet for all of the following reasons EXCEPT:

• A) the growth of new Web-based businesses has created more outlets for suppliers to sell to
• B) some suppliers have created Web-based purchasing systems that encourage switching
• C) the process of disintermediation makes it possible for some suppliers to reach end users directly
• D) software that links buyers to a supplier's website has created rapid, low-cost order capabilities

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Definitions:

Accounts

Records within financial accounting that are used to track financial transactions and positions in various categories, such as assets, liabilities, equity, revenue, and expenses.

Prepaid Rent

An advance payment for rent that is recorded as an asset and then expensed over the period the payment covers.

Office Supplies

Items used in offices on a daily basis for functioning and managing tasks, including pens, paper, and office equipment.

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit.