Which of the Following Statements Is Accurate When Considering the Ebusiness

question 3

Multiple Choice

Which of the following statements is accurate when considering the ebusiness challenge of adhering to taxation rules?

• A) All online companies must pay sales tax.
• B) Online companies do not have to pay any sales tax.
• C) Some online companies have to charge sales tax.
• D) Online companies that sell physical products have to pay sales tax and online companies that provide intangible services do not.

---

Definitions:

Discount Rate

The discount rate is the interest rate used in discounted cash flow (DCF) analysis to present value future cash flows and assess the attractiveness of an investment.

Net Present Value

An approach to determining the value of an investment by discounting future cash flows to their present value.

Cash Flows

The total amount of money being transferred into and out of a business, particularly regarding calculating its operating, investing, and financing activities.

Discount Rate

Utilized in discounted cash flow analysis, this rate assists in calculating the present worth of forthcoming cash flows.