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

question 39

Multiple Choice

Many companies sell software,music,or digital photographs over the Internet.They give up a digital copy of those resources,but not the actual resource itself.How will this company's REA model differ from those selling traditional 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:

Value Of A Right

The theoretical financial value of a right given to existing shareholders to purchase additional shares at a discount before a new issuance.

Rights Offering

A method by which a company offers new shares to its existing shareholders in proportion to their current shareholding, typically at a discount to the current market price.

Market Price

Market price is the current price at which a security or commodity can be bought or sold in a public market.

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.