The Internet has dramatically increased global e-commerce activities. Both traditional "brick and mortar" businesses and new dot-com businesses use the Internet to meet business objectives. For example, eBay successfully offers online auctions as well as goods for sale in a fixed price format.

Required
a. Identify business strategies that explain eBay's decision to offer goods for sale at fixed prices.
b. Describe three business risks related to eBay's operations.
c. Acquisitions by eBay in recent years include PayPal, an online payment service, and Skype, an internet communications company. Discuss possible reasons why eBay made these strategic acquisitions.
d. Four years after acquiring Skype, eBay sold most of its interest in the company.
Discuss how that impacts eBay's business risks.
e. Identify possible risks that can lead to material misstatements in the eBay financial statements if business risks related to its operations, including recent acquisitions and divestitures, are not effectively managed.