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Difficulty: HardInternet and Telecommunications in Business Communication

An agricultural processing firm in Ibadan uses a private internet portal to negotiate bulk raw material purchases with registered commercial farm cooperatives, transmit digital order documents, and execute payment transfers. Which e-commerce model best describes this telecommunications-enabled business communication?

  1. A
    Business-to-Consumer (B2C) e-commerce model
  2. Business-to-Business (B2B) e-commerce modelAnswer
  3. C
    Wholesaler-to-Retailer physical distribution channel
  4. D
    Consumer-to-Consumer (C2C) electronic trading network

Answer

Business-to-Business (B2B) e-commerce model
The scenario describes electronic business communication, order placement, and monetary settlement taking place strictly between two commercial organizations (an industrial processor and farm cooperatives). This direct firm-to-firm digital exchange is the defining feature of the Business-to-Business (B2B) e-commerce model.

Step-by-Step Solution

1
Analyze the entities involved in the telecommunication-based transaction scenario.
The transaction occurs between an agricultural processing firm and commercial farm cooperatives, both of which are business enterprises rather than individual end-consumers.
Identifying the commercial status of the participating parties determines the appropriate e-commerce transaction classification.
2
Evaluate the nature of the communication and operations described.
The usage of a private internet portal for order transmission, document exchange, and payment transfers between firms constitutes electronic procurement.
Telecommunications-enabled commercial exchange between organizations is defined as Business-to-Business (B2B) e-commerce.

Key Concept

Business-to-Business (B2B) E-Commerce Communication
Estimated Time:1m 30s
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Topics

Internet and Telecommunications in Business Communication

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