Choice "A" is correct. Electronic data interchange (EDI) (intercompany exchange of computer-processible business information) requires strict adherence to a standard data format. Translation software is required to convert internal company data to this format.
Choice "c" is incorrect. EDI can be accomplished using direct links between the trading partners, through communication intermediaries (called "service bureaus"), through value added networks (VANs), or over the Internet. Internet-based communication is the least expensive communications method.
Choice "b" is incorrect. Translation software is required in order to achieve the specified data format. Like all software, translation software will need to be updated as requirements change in order to follow changing conditions.
Choice "d" is incorrect. EDI is always accompanied by contracts, which specify the types of data to be exchanged, the rules governing transaction processing, and data and file security standards.