Which of the Following Statements Is TRUE

question 38

Multiple Choice

Which of the following statements is TRUE?

• A)Electronic commerce discourages international business transactions.
• B)Technology allows contracts to be performed less efficiently.
• C)Technology increases marketing costs.
• D)Electronic commerce makes many transactions easier and more affordable.
• E)Electronic commerce is governed almost entirely by a set of international treaties.

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Definitions:

Solvency

The ability of a firm to pay its debts as they come due.

Current Ratio

A financial ratio that is computed by dividing current assets by current liabilities.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not align with the calendar year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.