Transaction brokers:

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

Transaction brokers primarily function to facilitate transactions between buyers and sellers, acting as intermediaries that streamline the sales process. They save users both money and time by providing a platform that simplifies online sales dealings. This often includes handling aspects like payment processing, order fulfillment, and customer communication, thereby enhancing the overall efficiency of the transaction.

For example, a transaction broker might manage an online auction site, allowing users to bid on items quickly without having to navigate the complexities of direct negotiation with individual sellers. By simplifying these interactions, transaction brokers help to lower transaction costs and reduce the time involved in completing a sale, ultimately making the buying and selling process more convenient for users.

The other options, while related to online transactions, focus on different roles. Generating revenue from advertising or directing buyers to sellers pertains more to affiliate marketing or advertising platforms rather than dedicated transaction brokerage. Providing a digital environment for price establishment aligns more with marketplaces where businesses negotiate prices. Selling physical products directly refers to retail operations, which contrasts with the intermediary role of transaction brokers.

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