Section A.

Design & Data Collection:

Define the research design we are using

Case study

Experimental

Archival analysis

Comparative ? 2 groups

Cross-sectional ? Positivist, questionnaire

Longitudinal

Explain whether our research will be exploratory, descriptive or causal.

Evaluate how we will work towards establishing validity and reliability.

How could the B2C e-commerce industry reduce the risk of suffering cyberattacks by investing in cybersecurity?

Introduction

Our study aimed to focus on the relationship and the meaning of the effects on the investment of cybersecurity and the risk of suffering cyberattacks. We want to evaluate how B2C e-commerce companies could prevent the risk of cyberattacks by investing in cybersecurity. Our purpose is to analyze how and why the investments can reduce the risks and to identify how much it can prevent. Our literature review will explain what cybersecurity means, what is B2C e-commerce, and what kind of risks can be suffered by cyberattacks. We will use the cases from different e-commerce companies to understand what they did about investing in cybersecurity and evaluate how these practices relate to the cyberattacks. After reviewing the cases and the strategies with real data or interviews, we will assess the reasons for making investments in cybersecurity and the consequences of the practice. Also, we will discuss what causes the risk cyberattacks and what can be the most effective way to solve the problem with investments.

Review of Related Studies

This section is a report of a literature review undertaken to identify investing in cybersecurity and how business-to-consumer business(B2C) models deal with the prevention of cyberattacks. The beginning of using the concept of security has been started a long period of time ago, but as advancing the Internet, Chowdhury (2016) proves facing with cybersecurity is a vulnerability to cause malfunction of devices or leaking of personal information from combating cyber attacks (pp. 54-65). According to analysis of Kasana and Chaudhary. (2014), The following databases are shown that specific B2C companies such as Amazon and Ebay belong to online intermediates as Ecommerce platforms. Both Amazon and Ebay made significant sales, which naturally made hackers want to extort customer information because they can lose revenue with unexpected dollars (Rai & Mandoria, 2019). This paper focuses on how B2C models can better themselves to minimize the occurrence and impact of cyber-attacks even though Their companies consistently participated in the research and development(R&D) to innovate their new ideas.

Cybersecurity and Cyber Attacks

The Internet, a platform on which the development of e-commerce depends, is full of vast and complex cybersecurity risks. Cybercriminals utilize a spread of techniques to dispatch a cyberattack, along with malware, phishing, ransomware (Cohen, 1999). Therefore, for e-commerce companies, most of these attacks are related to security, which means that enhancing cybersecurity can effectively control the spread of cyberattacks. One common byproduct of a cyber attack is a data breach, where personal data or other sensitive information is exposed, which increases the credit risk of e-commerce companies (Uma & Padmavathi, 2013). Companies need to consider and focus on personal information leakage and company secrets leakage. Information security may have an impact on customers' trust, and companies may need to spend part of their investment to maintain a good relationship with customers. Cybersecurity primarily aims to protect against the unauthorized exploitation of systems and networks (Uma & Padmavathi, 2013). Therefore, either it may be a business startup or a large enterprise, cybersecurity is necessary. The network security system can not only protect the personal information security and property security of customers, but also ensure the smooth progress of the company's trading system, so e-commerce companies must consider taking certain investments in security, so as to reduce the greater loss of reputation from customers and companies.

Reducing the risk of suffering cyberattacks

For the e-commerce system's security, risk identification's primary goal is to identify the network environment risk, data access risk, and online payment risk of the e-commerce system. Ana et al. (2018) propose a model that integrates fault tree analysis, decision theory, and fuzzy theory to ascertain the current causes of cyberattack prevention failures and determine a given cybersecurity system's vulnerability. This model application proves its usefulness because it illustrates that the B2C industry is more susceptible to cybersecurity attacks than websites partly due to frequent visits by operators, credit transactions, and user authentication in e-commerce. How we can ensure the security of data transmitted over the Internet and each trading party's identity is the key to the development of e-commerce. The critical problem of e-commerce is security problems. Shi et al. (2018) proposed a concrete identity-based undetachable digital signature scheme with provable security. The study simulates the actual situation, analyzes and reduces the encrypted function's cyberattack problems, and is combined with the original signer's requirement. This research is useful to help analyze how the B2C industry could reduce the risk of cyberattacks. However, because it is a simulation experiment, it is still unable to ensure whether it can be accurately applied to the company's strategies.

Case #1. Amazon's response of cybersecurity in research and development

Cook (2018) describes that Amazon's web services(AWS) are in the form of on-demand, consisting of providers of cloud services that can connect information technology resources. As soon as developing AWS, their targeting highly reached 40-45% in 2017. However, as the range broadened, their aim was to strengthen security to prevent leaking customers' information. Tou et al. (2019) describes that Amazon invests "US$ 22.6 billion "(Tou et al., 2019, p. 1) on only R&D. Additionally, Tou et al. (2019) explained that Amazon has launched to build a virtual shopping assistant called Alexa for accomplishing business innovation and enhancing R&D activities. Alexa applied with an echo, which is a smart speaker for the purpose of fulfilling future-oriented dreams to users' lives although it still raises issues with user privacy and security because of their continuously listening microphones and using the artificial intelligence programs. (Jackson & Orebaugh, 2018). In addition, Bispham et al. (2019) pointed out that comprehending and representing natural language in voice-controlled digital assistants can apparently cause exploits as a type of "missense attacks" (Bispham et al., 2019) to convey exact semantics and functionalities due to "imparity between machine and human capabilities "(Bispham et al., 2019).

Case #2. eBay's response to cyber attack on 2014

Lin et al. (2007) described ebay as a company that achieved rapid growth in e-commerce using both its platform and PayPal platform. However, according to the analysis of Balushi (2016), online shopping trends to be easy to "sense of control and freedom" (Balushi, 2016, p. 162), so it is necessary to figure out that cybercrimes that cause financial damage can be widely recognized. Represently, Gandhi and Thanjavur. (2012) proved that eBay was attacked in 2003 with an unsolicited email scam that forced users to suspend their accounts, and that it had been phishing using their identity theft as if they were legitimate. At that time, It is necessary to be considered that the biggest problem was to trick a few victims using the same or easy-to-guess passwords with spoofing strategies.

How B2C companies make effective investments for cybersecurity

Security has always been the focus of the B2C e-commerce industry, because effective security is important for business continuity, customer trust and compliance with industry-specific laws and regulations (Rahman & Lackey, 2013). In fact, most of the computer related problems, such as malicious hackers and online predators, can be solved by strengthening the security. According to Rahman & Lackey's (2013) meta-analysis, in order to provide a comprehensive protection system to protect property and personal information, security is essential, but these methods will be accompanied by high costs. Therefore, investment in security systems becomes essential, especially for small and medium-sized enterprises. Although there is no fully secure network protection system, increasing investment in cybersecurity can reduce the chance of becoming a victim. However, the investment in cybersecurity is not simple. The uncertainty of cyberattack determines the uncertainty of investment, which will greatly affect the control measures of investment opportunities (Chronopoulos et al., 2017). This also means that when companies invest in cybersecurity, they must consider the uncertainty of cyberattacks, so as to determine the amount of investment and the number of investment personnel. Fielder et al. (2016) systematically analyzed that when the budget is low, the investment is more likely to provide some more stable security control measures; in a higher budget, strict patching strategies are implemented when possible, and some anti malware, firewall and security configuration are provided. These conclusions are obtained through the case study of many small and medium-sized enterprises. For the large-scale e-commerce enterprises we studied, such as Amazon and EBay, these methods seem not suitable, but it is doubtless that the investment intensity of security systems depends on the company's budget. Because there is no way to avoid the existence of risks completely, the company should consider the type of cyberattacks that it may face and how uncertain it is when making investment decisions, and then invest in the security system according to its own company's budget. By using the multidisciplinary method of combining economy, behavior, society and engineering to investigate the cybersecurity investment insight, e-commerce companies can complete a more effective system and incentive structure, and improve the social ability to resist the cybersecurity risks (Fielder et al, 2016).

Conclusion

Through the literature review we understand that the cyberattack always includes computer virus and hacker attacks which are both related to cybersecurity. Therefore, investment in cybersecurity can protect the personal information of customers and confidential information of e-commerce companies even though it would cost a lot of money. In addition, there are some useful studies which analyze how enterprises prevent failures and determine a given cybersecurity system. Furthermore, we study the cases of Amazon and Ebay about how they make investment in cybersecurity and we notice that they both suffered cyberattacks in different ways and they're still working on it with a lot of costs and techniques. Finally, we evaluate that there is no way to prevent cyber attacks completely, the SMEs need to focus more on investing in cybersecurity since they are easier to get attacked by their competitors. Therefore, when enterprises make decisions about investments they need to consider uncertainty of the cyberattacks and their budgets.

Section B.

Work Sheet Extensions for Merchandise Inventory Adjustments: Periodic Inventory System

1. Complete the Adjustments columns for the merchandise inventory.

2. Extend the merchandise inventory to the Adjusted Trial Balance and Balance Sheet columns.

3. Extend the remaining accounts to the Adjusted Trial Balance and Income Statement columns.

4. Prepare a cost of goods sold section from the partial work sheet.

The following partial work sheet is taken from Kevin's Gift Shop for the year ended December 31, 20--. The ending merchandise inventory is $51,330.

Merchandising Inventory:

1. Complete the Adjustments columns for the merchandise inventory.

2. Extend the merchandise inventory to the Adjusted Trial Balance and Balance Sheet columns.

3. Extend the remaining accounts to the Adjusted Trial Balance and Income Statement columns.

iii.

Normal No Spacing Heading 1 Heading 2 1. Joan insures her house (replacement value of $500,000) with a policy that has a Section A (Dwelling] limit of $300,000, and an 80%% co-Insurance clause with respect to the dwelling. A fire causes $100,000 worth of damage to the home (valued at replacement cost). Considering only this information, and assuming that losses by fire are covered under the policy, what amount will Joan collect from the insurance company? a. $100,000 b. $75,000 C . $25,000 d. $20,000 2. Assume that your home is insured for $250,000, and you are away traveling on vacation. If you bring some of your belongings with you, and those belongings are stolen, what would be the maximum you could collect under your homeowner's policy? a. $125,000 b. $50,000 C. $25,000 d. $12,500 3. Which of the following endorsements are desirable features when evaluating a disability income policy for purchase? a. A waiver of premium rider b. The policy should be guaranteed renewable c. Inflation adjustment rider d. All of the above are correct 4. If you want to provide more life insurance coverage to your family early in your life when they need it the most, and decrease the amount of coverage in later years as your wealth increases, yet continue to pay the same premium each year, you should buy a policy. a. Whole life b. Decreasing term Variable life d. Universal life 5. Your homeowner's policy provides for replacement cost coverage on personal property losses. Your flat screen television was vandalized by intruders and was completely destroyed. Your television cost $400 four years ago and was 50% depreciated. A comparable new one would cost $600 today. How much will the insurance company pay for the destroyed television? SO $200 $400 $600 6. Alicia has discovered a tax credit that she can claim on her taxes in the amount of $100. She is in the 24% marginal tax bracket. What will be the effect of claiming this credit on her final federal tax liability? a. Decreases It by $24 b. Decreases it by $100 Increases it by $100 d. Increases it by $24)QUESTION TWO [25] The directors of Kwetsa Bottling Industries have appointed you as their financial consultant. They are seeking new project investments related to the bottling of flavoured water and softdrinks. You are required to calculate the present cost of capital of the company. The capital structure is listed below: . 2 million ordinary shares with a par value of 50 cents each, currently trading at R4 per share. The company has a beta (B) of 1.3, a risk free (Rf) rate of 8% and a return on the market (Rm) of 18%. 1.5 million 13%, R2 preference shares, with a market value of R2.5 per share. R3 million 11%, debentures due in 5 years and the current yield-to-maturity is 6%. R800 000 16%. Bank loan, due in 4 years. The company also has a general reserve of R3 500 000 and accumulated profits of R4000 000. Additional information: The dividend growth of 12% per annum was maintained for the past 4 years, The latest dividend paid was 70 cents per share. .. Assume a company tax rate of 30%, Required: 2.1 Calculate the weighted average cost of capital. Use the Capital Asset Pricing Model to calculate the cost of equity (22) 2.2 Calculate the cost of equity, using the Gordon Growth Model (3)Capital budgeting is defined as the: Determination of the total amount of money which a firm should borrow. Process of determining the optimal types and amounts of inventory to keep on hand. Management of a firm's long-term investments. Management of a firm's net working capital. Mix of debt and equity used by a firm to finance its operations