There Is Less Risk Involved in Starting an E-Commerce Only

question 24

True/False

There is less risk involved in starting an e-commerce only business than there is in trying to add e-commerce to a traditional (bricks-and-mortar)store.
Although there is no question that some Internet businesses will grow and prosper,it is also evident that many e-commerce firms will fail.On the other hand,many traditional businesses have successfully expanded by incorporating e-commerce into their plans.

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Definitions:

Net Income

The income a company retains following the deduction of all costs and taxes from its total earnings.

Goodwill

An intangible asset that arises when a company acquires another business for more than the value of its tangible and identifiable intangible assets.

Outstanding Voting Shares

The total number of shares of a corporation's stock that are currently owned by shareholders and have the right to vote.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, neither under compulsion to act.