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5 Written questions

5 Matching questions

  1. Permanent Establishment (PE)
  2. Profitability
  3. Transaction taxes
  4. Tariffs
  5. Security Protocols
  1. a include sales taxes, use taxes, and excise taxes, are levied on the products or services that the business sells; the sales tax issue is probably one of the most immediate concerns of e-businesses today.
  2. b physical location of an organization or business for taxation purposes.
  3. c The conditions which determine a company's ability to make a profit after their expenses are deducted from their income from sales. Variables include overhead such expenses as facility, equipment, inventory, distribution and wages. E-Commerce businesses have improved their overall profitability through the increased productivity achieved through the speed of the internet and the ability to eliminate intermediary costs.
  4. d Sets of rules and standards that allow computers to exchange information such that the information is not visible to those who are not allowed to view it.
  5. e a schedule of duties (taxes) imposed by a government on imported goods or in some countries exported goods

5 Multiple choice questions

  1. The process of losing distribution channels when they are no longer needed. The growth of e-commerce has effected the need for retail intermediaries or "middlemen" that exist between the producer and the consumer. One example would be the effect that Online Ticket Purchases has had on Travel Agencies. Consumers are learning that the ability to buy directly from the producer saves money as the cost markup that occurs with the "middleman" has been eliminated.
  2. The process of using a financial formula (incorporating current exchange rates) to convert a given amount of one currency to its equivalent value in another currency.
  3. This refers to the movement of products or services from the producer to the consumer.
  4. the customary beliefs, social forms, and material traits of a racial, religious, or social group.
  5. The amount of time it takes a seller to respond to a customer's inquiry for purchase or service.

5 True/False questions

  1. E-ServiceThe methods that a company uses to provide customer service directly from its web site.


  2. Distance LearningA new trend in education and training whereby courses are offered via the internet from a remote site. This allows for prospective students to access and receive credit for courses without geographical limitations and schedule constraints. Both secondary and post-secondary institutions have been able to increase their profitability through additional programs and enrollment with minimal overhead costs.


  3. GlobalizationThe process of becoming global or world wide. In e-Commerce this refers to the removal of the geographic boundaries that traditionally exist between the seller and the customer.


  4. Electronic PaymentsA payment that is transmitted electronically either over the telephone line, or between Web sites on the Internet. Four types of electronic payments are:


  5. Continuous Inventory ControlThe process of managing product inventory where the information is updated instantaneously each time there is an increase or decrease to the stock-in-hand. This is the type of inventory management that is necessary to e-Commerce businesses as it enables the seller to provide customers with product availability information that is current.