Online Retailers That Have a Physical Presence Within a State

question 8

Multiple Choice

Online retailers that have a physical presence within a state must collect state taxes on any Web sales made to residents of that state. Sell2U.com Inc., an online retailer based in California, pays Tracker Web Services, which is located within New York, to direct traffic to Sell2U.com's site. If Sell2U.com must collect and remit taxes on its sales to New York residents, it is most likely because

• A)Sell2U.com's deal with Tracker falls within New York's definition of physical presence.
• B)Congress has explicitly chosen to tax Internet sales.
• C)the United States Supreme Court has ruled that a state can compel an out-of-state business to collect and remit state taxes.
• D)New York requires its residents to self-report their purchases and pay use taxes to the state.

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Definitions:

Equal Space

The provision or allocation of the same amount of physical or metaphorical room to different parties, ideas, or entities.

Central Tendency

Central tendency refers to a central value or a typical value for a probability distribution. It is a measure that attempts to describe a set of data by identifying the central position within that set of data. The most common measures of central tendency are the mean, median, and mode.

Interval Data

Interval data refers to a type of quantitative data that not only categorizes and orders the quantities but also precisely measures the differences between them. Unlike ordinal data, interval data has equal intervals between values, making mathematical operations meaningful.

Ratio Data

A type of quantitative data that possesses a natural zero point and allows for meaningful comparisons using division, enabling measurement of both differences and ratios between data points.