Although It Is Certainly Possible for European Consumers to Browse

question 5

Multiple Choice

Although it is certainly possible for European consumers to browse Amazon.com's U.S.site,they prefer a direct link to a site with a local domain name.All of the following are possible reasons for such behavior except:

• A)the Web site of choice will be one that quotes prices in euros.
• B)the Web site of choice will be that which offers a product selection tailored to local tastes.
• C)the preference will be for the Web site which ships from local distribution points.
• D)due to price fluctuations the preference will be for the Web site that quotes prices in U.S.dollars.
• E)the preference will be for sites that are in their own language.

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Definitions:

Hurdle Rate

Hurdle Rate is the minimum acceptable return on investment or project that a business requires before it considers it viable or proceeds with it.

Accounting Rate of Return

The return on an investment calculated by dividing the average annual profit by the initial investment cost, typically used to assess the profitability of potential investments.

Net Cash Flow

The difference between a company's cash inflows and outflows during a specific period.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the strategy and financial performance of an organization.