E-commerce leads to ________,which is the elimination of middle layers of distributors and suppliers.
A) forward integration
B) decentralization
C) backward integration
D) disintermediation

Question

Quizplus · Accepted Answer

Disintermediation is the process of eliminating intermediaries, such as distributors and suppliers, from a supply chain. This is often a result of e-commerce, which allows buyers and sellers to connect directly, bypassing traditional intermediaries. Forward integration refers to a company expanding its operations into areas traditionally handled by suppliers or distributors, while backward integration refers to a company bringing activities previously handled by suppliers in-house. Decentralization refers to the practice of delegating decision-making authority across different levels of the organization. None of these options are directly related to the elimination of middle layers of distributors and suppliers. Therefore, the best choice is D – disintermediation.

E-Commerce Leads to ________,Which Is the Elimination of Middle Layers