Cannibalization Occurs When a New EC Initiative Produces Substantial Online

question 25

True/False

Cannibalization occurs when a new EC initiative produces substantial online sales,but traditional sales fall such that no increase in total revenue occurs.

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Definitions:

Tax Base

The total amount of assets or income that can be taxed by a government, determining the extent of tax revenue.

Carrying Value

The book value of an asset or liability, calculated as the original cost minus accumulated depreciation, amortization, or impairment costs.

Current Tax Liability

The amount of taxes due to be paid to the taxing authorities within the next financial period, typically within one year.

Accounting Profit

The difference between accounting revenues earned and accounting expenses incurred.