Many Companies Sell Software,music,or Digital Photographs Over the Internet

question 31

Multiple Choice

Many companies sell software,music,or digital photographs over the Internet.They provide each customer with a digital copy of those resources,but not the actual resource itself.How will this company's REA model differ from those selling tangible inventory?

• A)These companies do not need an Inventory table.
• B)The structure of Inventory table is completely different from that of mass-produced merchandise.
• C)The Inventory table is only different in that it doesn't need attributes such as quantity-on-hand,quantity-available,reorder point,and standard reorder quantity.
• D)The Inventory table need not include information about the standard list price of each item and its description.

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Definitions:

3 Fs

often refers to the informal investors in early-stage startups: friends, family, and fools, who provide initial capital.

Raise

The act of collecting or soliciting funds or resources, often for a business venture or project.

Due Diligence Period

A set timeframe during which detailed investigation and evaluation is conducted before entering into an agreement or transaction.

Initial Offer

Typically refers to the first sale of stock by a private company to the public, often associated with an initial public offering (IPO).