Answer:
The broker cannot do this since
Explanation:
There are two main errors in this proposal:
- the escrow account can be an interest bearing only if deposit 20% or less of the purchase price of the property. Apparently in this case the property was being sold at $1.5 million, so the escrow account should only hold $300,000 in an interest bearing account.
- second, real estate commissions forbid brokers and agents from receiving interest from an interest bearing escrow account unless they are the owners of the property (the sellers or lessors depending on the operation).
Answer:
The correct answer is letter "A": Length of relationship.
Explanation:
The Internal Revenue Service (IRS) 20-Point Test is a guideline aiming to determine if an individual is an employee or an independent contractor of a company for tax-related purposes. The test considers three main categories: <em>behavioral control, financial control, </em>and <em>the type of relationship between the individual and the company. </em>Independent contractors and employees are treated legally different and must be properly classified by firms to avoid lawsuits.
Therefore, <em>the length of a relationship between an individual and an organization is not considered at the moment of determining if that individual is an employee or a contractor.</em>
Answer:
b. provide tax advice either in a different manner or provide a different kind of tax service than competitors.
Explanation:
When the company's objective is to position itself in the market differently from competitors, the focus should be on offering a product or service that has different attributes than the competitor.
A differentiated product or service can be defined by presenting innovative features or functions in the market, which generates the desire for the purchase in the customer.
Investing in different attributes for a good or service generates value for the brand and helps to achieve strategic advantages that competitors are unable to achieve.
Therefore, the most suitable alternative for this issue is the letter b, because to position your company differently from existing competitors, the entrepreneur must provide tax advice differently or provide a different type of tax service than competitors.
Answer Explanation:
Operating leverage is the degree to which a firm is able to increase its income by increasing its revenue which is based on its fixed cost.
Economies of scales is the increase in output with the decrease in per unit cost.
In the question it states that a company has high operating leverage and operating at near capacity which means the company is using more fixed assets in comparison to its current assets. If the company uses more fixed assets which is by increasing sales volume then the economies of scales will be hindered because economies of scales is best utilized with fixed capital. Therefore, with the increase in sales volume the cost of per unit fixed assets will decrease, disturbing the economies of scales and resulting in decreasing economies of scale.