AmazonCom and Expedia

question 45

Multiple Choice

Amazon.com and Expedia.com are best described as ________ that sell products and services directly to final buyers via the Internet.

• A) search engines
• B) content sites
• C) transaction sites
• D) e-tailers
• E) iTV sites

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Definitions:

Return On Total Assets

A financial ratio indicating the profitability of a company relative to its total assets, showing how effectively a company is using its assets to generate profits.

After-Tax Effect

The impact of transactions on a company's net income after accounting for taxes, reflecting the true financial outcome.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, reflected in the income statement as a financial charge.

Comparative Common-Size Balance Sheet

A balance sheet that presents financial figures as percentages of a total in order to facilitate year-over-year and company-to-company comparisons.