E-Business vs E-Commerce: Advantages, Disadvantages & Taxation
Business and the Internet
Introduction: E-Business and E-Commerce
E-business and e-commerce are terms sometimes used interchangeably, and sometimes to differentiate vendor products. In both cases, the ‘e’ stands for ‘Electronic Networks’ and describes the application of electronic network technology.
E-commerce, or electronic commerce, involves carrying out business communications and transactions through computers and over networks. It includes buying and selling goods and services through digital communication, transactions on the World Wide Web and the Internet, and means such as electronic funds transfer, smart cards, and digital cash.
E-business, or electronic business, evolved from e-commerce. It involves conducting business on the Internet, not just selling and buying goods, but also servicing customers and joining forces with business partners. E-business includes e-commerce and is a much broader concept. It also covers Internet processes such as production, new product development, stock management, risk management, and finance. E-business is more complex and more focused on Internet processes.
An e-business solution will not only add value but offer many other business advantages, such as removing location and availability restrictions, reducing time and money, and providing competitive and reduced costs of doing business.
However, there are problems and issues with e-business, including mistrust in security, hesitation to release personal information on the Internet, security problems, rapidly developing technological standards, difficulty in finding suppliers of goods and services, and a higher number of mistakes.
Conclusion: E-Business and E-Commerce Today
Nowadays, e-business and e-commerce offer a great opportunity to reduce time and money and provide a competitive edge. However, security problems exist. Companies need e-commerce and e-business to compete.
Effects of High Taxation
Introduction to Taxation Effects
The total outcome of all the effects listed below is a large tax burden. Workers feel the brunt of this burden because they create wealth. When all the effects are combined, people struggle to live on their incomes.
Multiple governments levy many taxes on businesses. These taxes take away some of the money used to pay wages, so employers cannot pay good wages, and businesses have to raise prices to get money to pay these taxes. This leads to inflation. Because high taxes cost businesses money, they can’t provide as many products as they used to. Property taxes make it expensive to stock products with lower quantities demanded, and many manufacturers cannot afford to produce low-demand products and also pay their taxes.
Many businesses go bankrupt because they can’t afford to operate after the government takes its cut. Other businesses flee the country to escape high taxes. Still other businesses must cut their payrolls to stay within their incomes. The result in each case is the loss of jobs.
People with mortgage or rental contracts don’t have the money to pay the monthly payments.
Landlords also cannot pay their taxes and their mortgages, causing the loss of rental units. The government quickly seizes the property and sells it at auction. Thus, high taxes cause foreclosures and evictions.
Conclusions: The Impact of High Taxes
High taxes in the economy may help the government with its income, but they cause great problems in business and for the population. If many people cannot afford to live on their incomes, the poverty rate goes up.