There Are Also Some Risks When Using EDI That Should

question 31

Multiple Choice

There are also some risks when using EDI that should be considered. Which of the following should be considered when using EDI?

• A) The machine and training cost will add up to a large amount and cutting corners may cost a company more than it saves.
• B) Security is also an issue Procedural safeguards have not kept up with technology in this area.
• C) The problem is exposure to outside users, which opens up a doorway to false messages These messages may come in the form of a person who is not a supplier sending data or the data being interrupted and/or altered.
• D) A decision must be made whether to trade singularly through EDI or use both EDI and traditional methods
• E) all of the above

Recognize the influence of economic growth policies on DVCs and the structure of their economies.

Understand the concept and implications of per capita income disparities among countries, including factors influencing these disparities.

Analyze the relationship between economic policies and practices on global income distribution and poverty alleviation.

Appreciate the potential of microcredit programs in enhancing the economic empowerment of the poor in DVCs.

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Definitions:

Average Amount

The arithmetic mean of a set of numbers, representing a central or typical value in a dataset.

Optimal Average Cash Balance

The ideal amount of cash that a company should hold to minimize costs associated with holding too much or too little cash.

Disbursements

Payments made by a business, usually consisting of expenses, investments, and other financial outlays.

Lower Cash Balance Limit

The minimum amount of cash that a business aims to maintain in its cash reserves to meet emergency or operational needs.