Answer:
B) False: since it is still a closely held C corporation, it cannot reduce its ordinary income through passive losses. If it hadn't been a closely held C corporation then it could have made the deductions.
Explanation:
Passive losses are losses resulting from financial activities, i.e. investments in other corporations where the investor doesn't participate in.
Passive losses cannot offset ordinary income, they must be matched against passive gains only. If passive losses exceed passive gains, they can be carried forward without limitation.
The only exception applies to C corporations that are not;
- closely held corporations or
- personal service corporations.
Qualifying C corporations can actually deduct passive losses from certain ordinary income.
Closely held C Corporations are corporations where during the last 6 months, 50% or more of its stock is owned by 5 or fewer investors.
Answer:
The correct answer is letter "A": demand curve to the right and make demand less elastic.
Explanation:
Investing in advertising has one goal: <em>increasing profits</em>. There are many ways of increasing the revenue of a company being the most common increasing the quantity demanded. However, increasing the quantity demanded -<em>moving the demand curve to the right</em>- implies bringing the prices down -<em>demand law</em>, but we do not know how the market will react.
Then, advertising should also help institutions marketing that will help them make their products less <em>elastic </em>or less prone to major changes in quantity demanded due to changes in price.
Answer:
The difference between the return on an index fund and the return on Treasury bills
Explanation:
The market risk premium explains critically the difference between an expected return on a given market portfolio and the risk-free rate.
It is also the additional return a given investor will receive (or is expected to gain) from holding a risky market portfolio instead of risk-free assets.
