Answer:
C. Buddy cannot be a creditor of the corporation after the redemption.
Explanation:
"A stock redemption that terminates a shareholder’s entire stock ownership in a corporation will qualify for sale or exchange treatment under § 302(b)(3). The attribution rules generally apply in determining whether the shareholder’s stock ownership has been completely terminated. However, the family attribution rules do not apply to a complete termination redemption if the following conditions are met:
The former shareholder has no interest, other than that of a creditor, in the corporation for at least 10 years after the redemption (including an interest as an officer, director, or employee).
The former shareholder files an agreement to notify the IRS of any prohibited interest acquired within the 10-year period and to retain all necessary records pertaining to the redemption during this time period."
Reference: South-Western, Thomson. “Chapter 5.” To Qualify for Sale or Exchange Treatment, a Stock Redemption Generally Must Result in a Substantial Reduction in a Shareholde, 2005,
Answer:
A monopsony is market where there is only one buyer, e.g. the government is the sole buyer for nuclear submarines in the US.
The demand curve of a monopsony is similar to the demand curve of any other type of market, i.e. it is downward sloping. Since there is only 1 buyer, the demand curve is also the supply curve. If the monopsonist wants to increase the quantity demanded at a lower price, the supplier (or suppliers) must be able to lower its costs and that generally results in lower labor costs.
It is compute the dilutes earnings per share. I think it’s B.
Answer:
a. repositioned product
Explanation:
A company well-known for its easy-to-cook breakfast cereals was facing stiff competition from the many players in the market. The company changed its campaign to focus on dietary needs rather than just convenience, thus targeting a segment of consumers looking for healthy diet. This is an example of a repositioned product
Product Repositioning refers to a major change in target market's understanding of the product or the brand.
Repositioning a product, means the firm has to change customers view of the product to reflect new benefits.
Usually businesses reposition a product due to declining performance as a result of stiff competition or due to major shifts in the environment.
Answer:
C. The United States military
Explanation:
Federal income taxes refers to the taxes levied on incomes by the federal government. All citizens and corporates must pay taxes on the income earned. Federal income tax is set as a percentage of the gross income.
The collected federal income taxes becomes the revenue for the federal government. The federal government uses taxes in the provision of public goods and services in the entire country. Defense and national security docket is one of the sectors that consume a big percentage of federal revenue.
