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sweet-ann [11.9K]
3 years ago
9

Because of its quality​ investments, Carolina Corporation has always generated​ 30% to​ 40% of its gross income from passive sou

rces. In the current​ year, Carolina sold a block of stock in a company it acquired several years ago. As a result of the​ sale, the corporation realized a substantial​ long-term capital gain that will increase this​ year's investment income from​ 40% to​ 70% of gross income. Explain to​ Carolina's president why she should or should not be worried about the personal holding company tax. ​(Assume that the stock ownership requirement is​ met.)
Business
1 answer:
qwelly [4]3 years ago
6 0

Answer:

It is funny how doing so well in business is not always completely beneficial. First of all, Carolina's president should be worried that her can be considered a personal holding company (PHC). PHC receive at least 60% of its adjusted ordinary gross income​ (AOGI) from passive sources. The other requirement is that 50% of its stock is owned by five or fewer individuals or companies. Being a PHC means more taxes, that is why Carolina Corporation should try to avoid being considered a PHC.

Carolina can avoid being considered a PHC if its other investment income (income from passive sources) along with this investment income, does not exceed​ 60% of its AOGI.

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Explain how the looting of shops and malls will affect businesses in terms of the relationship between social responsibility and
Ulleksa [173]

Social responsibility means an acceptable theory which is applies to everyone, expecting that the act of individual must benefit the whole of society.

Corporate Social Responsibility refers to practices and policies undertaken by  firms and other business, who are intending to have a positive influence on the environment and world at large.

Triple bottom line​ is also a concept that state that in addition to the <em>major objectives</em> of firms which is to make profit, they should ensure they impact the society and environment as well.

The looting of shops and mall will take a toll on the moral effort of firms and businesses adhering to the  triple bottom line​ concept as well as the corporate social responsibility as they have to count on the loss incurred, caused by the masses.

Despite that insurance provision and government can provide compensation for the looted goods, still, the morale of the firms authorities and business owners towards the social responsibility concept and triple bottom line​ concept will be negative

Learn more about this here <em>brainly.com/question/1341005</em>

5 0
3 years ago
Before ending the meeting, John Noble informed Howie that he would be sending out an e-mail to all employees asking for suggesti
Brut [27]

Answer:

a) employees can be motivated by open communication.

Explanation:

The answer is that Howie does not realize that employees can be motivated by open communication because by asking employees suggestions as to how jobs could be restructured to improve productivity, John Noble is trying to have a direct communication allowing employees to express their thoughts which will make them feel as part of the company and valued which will result in them feeling motivated to perform well in their job.

The other options are not right because employees won't be giving their opinions thinking on equity and ways to simplify job tasks are not the only suggestions that employees can provide.

4 0
3 years ago
An important function of the regional Federal Reserve Banks is Question 2 options: A) clearing checks. B) determining monetary p
zysi [14]

Answer:

B) determining monetary policy AND D) setting reserve requirements.

Explanation:

The Federal Reserve Bank is comprised of 12 regional Federal Reserve Banks that are each responsible for a specific geographic area of the U.S.

The Fed's main duties include <u>conducting national monetary policy, </u>supervising and regulating banks, maintaining financial stability, and providing banking services.

Furthermore, In the United States, the Federal Reserve Board of Governors <u>controls the reserve requirement</u> for member banks.

3 0
3 years ago
XYZ Inc. pursues a low-cost strategy in its industry and generally needs lower skilled employees. As a result, their management
Darya [45]

Answer:

B) market lag

Explanation:

Every profession usually has an average remuneration price, which is considered the market price. Some companies seeking more skilled workers offer compensation above market salary, others, such as the low-cost company XYZ, offer salaries below market level. This strategy is called a market lead. Companies with market lead policies often have higher employee turnover, as finding a higher-paying job tends to change jobs.

8 0
4 years ago
Which terms best describe sales tax? Check all that apply.directindirectregressiveprogressiveproportional
Gnom [1K]

ANSWER: Indirect and Regressive

EXPLANATION: The Sales Tax is a tax which is imposed by the government on the sale of products and services. This tax is both Indirect and Regressive in nature.

Sales Tax is indirect because it is imposed by the government but are collected by the seller or the manufacturers (also known as Intermediary) on behalf of the government from the consumers. The intermediary then passes on the tax to the government.

Sales Tax is also regressive in nature as it imposed uniformly on the consumers regardless of the economic condition of the buyer. The term 'Regressive' means that the tax distribution pressure decreases as the buyer's income goes higher. The tax burden will be higher for low income group people and will be lower for high income group people.

5 0
3 years ago
Read 2 more answers
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