Companies Like Amazon and EBay That Only Have a Presence

question 41

Multiple Choice

Companies like Amazon and eBay that only have a presence in the virtual world have significantly lower fixed costs in terms of retail space than companies that have to pay for retail space,like retail stores you would find in a mall.This technological concept is known as:

• A)VoIP.
• B)telecommuting.
• C)cloud computing.
• D)digital storefronts.

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its current income. It's calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses.

Depreciation Expense

The orderly assignment of the financial value of a real asset over its life of usefulness.

EBIT

The financial performance metric, Earnings Before Interest and Taxes, deducts all expenses from a firm's income except for interest and tax expenses.

Return On Equity

A measure of a corporation's profitability, calculated as net income divided by shareholder's equity, indicating how effectively management is using a company’s assets to create profits.