The Vice President of Fembooks Argues That They Will Encounter

question 82

Multiple Choice

The vice president of Fembooks argues that they will encounter too many difficulties in taking the business global via the Internet.The president argues that the benefits would be worth the problems encountered.Which of the following statements,if true,would support the argument of the vice president against going global?

• A) While English is the dominant language of the Internet, more local traffic would be generated by Web pages in the local language.
• B) Being a niche business, going global over the Internet would not put a huge strain on existing personnel.
• C) Shipping books overseas could easily be handled by UPS, FedEx, or airmail.
• D) Sales predictions for overseas expansion anticipate an initial 30 percent increase, then tapering off to a 20 percent increase annually.
• E) Increased Internet advertising costs would be a fairly inexpensive investment to increase business on a global basis.

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Definitions:

Capital Gain

The profit earned from the sale of an asset or investment which exceeds its purchase price.

Schedule D

Utilized by taxpayers to report sales or exchanges of capital assets, encapsulating both gains and losses.

Form 4797

A tax form used to report the sale or exchange of business property, encompassing both gains and losses.

Investment Purposes

The intent to allocate resources or capital towards assets anticipated to generate income or profit.