Based on a Supreme Court Ruling, an Internet-Based Merchant Needs

question 15

Multiple Choice

Based on a Supreme Court ruling, an Internet-based merchant needs to charge sales tax only when _____.

• A) the sale price exceeds $100.00
• B) buyers live in a state where the merchant has a physical presence
• C) buyers purchase certain enumerated items
• D) items are purchased through a consumer-to-consumer (C2C) Web site

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Definitions:

Bureaucratic Structure

An organizational structure characterized by strict rules, a hierarchy of authority, and a clear division of labor.

Going Rate

The current standard price or wage rate for goods, services, or labor in a particular market or industry.

Insurance Policy

A contract between an insurance company and a policyholder that outlines the terms and conditions under which the insurer agrees to compensate the insured for specific losses.

High Deductible

A health insurance plan feature requiring a higher out-of-pocket payment before insurance coverage begins.