Examkin

Question

Difficulty: EasyInternet and Telecommunications in Business Communication

A manufacturing firm in Lagos adopts Electronic Data Interchange (EDI) to connect its purchasing software directly with its suppliers' systems. Which of the following best describes the main purpose of EDI in business communication?

  1. The automated exchange of standardized business documents directly between computer systems.Answer
  2. B
    Replacing trade functions by converting general commercial activities into direct services.
  3. C
    Financing production activities by taking over the bulk-breaking role of wholesalers.
  4. D
    Dispensing cash directly to customers through electronic Point of Sale terminals.

Answer

The automated exchange of standardized business documents directly between computer systems.
Electronic Data Interchange (EDI) allows commercial enterprises to transmit standardized documents such as purchase orders, invoices, and shipping notices electronically directly from computer to computer without manual paperwork.

Step-by-Step Solution

1
Identify the core definition and function of Electronic Data Interchange (EDI).
EDI is an information technology system designed for transmitting structured data and business documents between organizations.
Business telecommunications rely on standard EDI protocols to eliminate paper processing and accelerate B2B communication.

Key Concept

Electronic Data Interchange (EDI) in Business Communication
Rate this question

Topics

Internet and Telecommunications in Business Communication

More questions from this topic