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.
<span>Then the private benefit from consumption
will will not be the same as the social benefit from consumption.</span>
An externality is the impact of a buy or choice on a man group who did not have a choice in the occasion and whose interests were not considered. Externalities, at that point, are overflow impacts that fall on parties not generally engaged with a market as a maker or a buyer of a product or service. Externalities can be negative or positive, and externalities can come about because of either the production or the utilization of a good, or both.
Answer:
$4,410
Explanation:
Discount refers the amount that is deducted from the usal price of a good sold or service rendered.
From the question, the credit terms 2/10, n/30 implies 2% discount if the amount owed is paid within 10 days while no discount will be enjoyed if the amount owed is paid after 10 days but must be beyond 30 days.
Therefore, the amount owed by Lulu's if the store pays within the discount period, i.e. within 10 days, can be calculated as follows:
Discount = (Purchases - Merchandise returned) * 2% = ($5,500 - $1,000) * 2% = $90
Amount owed = Purchases - Merchandise returned - Discount = $5,500 - $1,000 - 90 = $4,410.
Therefore, the amount owed by Lulu's if the store pays within the discount period is $4,410.
Answer:
The correct answer is b. False
Explanation:
The selling cycle is a 7 steps approach:
- prospecting,
- pre-approach,
- approach,
- presentation,
- meeting objections,
- closing the sale,
- and follow-up.
The pre-approach only occurs once in the cycle.
