Which of the Following Statements About the Collection of Sales

question 54

Multiple Choice

Which of the following statements about the collection of sales taxes on Internet and online purchases is FALSE?

• A) States can only require companies that have a physical presence in a state to pay sales tax.
• B) Federal requirements on state sales tax have caused many states to lose urgently needed tax revenue.
• C) States are vigorously lobbying for changes to federal law so that they can collect taxes on Internet and online purchases.
• D) If an Internet vendor is not required to collect sales tax on a purchase, the purchaser is exempt from paying any sales tax.
• E) As the volume of Internet sales continues to increase, the amount of state sales tax revenue decreases.

Comprehend the process and significance of feedback and revisions in business documents.

Understand the importance of audience adaptation in creating business messages.

Recognize the ethical considerations in business communication.

Grasp the role of corporate culture in shaping communication practices.

---

Definitions:

Gas Pump

A device at a gas station that dispenses fuel for vehicles.

Local Ordinance

A law or regulation enacted by a local government authority, such as a city or county, to manage local issues and concerns.

Price of Gasoline

The cost per unit volume of gasoline, variable based on factors like crude oil prices, taxes, and demand.

Payoff Matrix

A table that shows the possible outcomes, rewards, or payoffs from different decisions or strategies in a strategic situation or game.