Answer:
A free trade area
Explanation:
A free trade area comes to existence when two or more countries sign an agreement that eliminates or reduces trade barriers among themselves. Usually, nations in the same region sign a free trade agreement that encourages economic cooperation. In a free-trade area, goods and services can move from one country to another with minimal or no government interference in terms of tariffs, embargo, quotas, or other prohibitions.
The four South American countries have formed a free trade area. They have agreed to economic cooperation that allows free flow of trade among the nations. The countries have established a trading block that will spur economic growth in each of them.
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Answer:
B.Structure is organized either by product or by region.
Explanation:
The divisional organizational structure is a type of structure in which the functions of the organization are to be transformed into a division. It could be in terms of a product line or the geographical region
Here in a given situation, the example of a divisional organization structure is option B as it represents that the structure would be organized either by a product or region
Hence, the option B is correct
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: $2569.00
Explanation:
Purchase price per share = $13.20
Number of shares = 80
Commission on transaction = $0.03 per share plus $27
Sales prices per share = $45.68
Total Purchase price = ( number of shares × purchase price per share)
Total Purchase price = (80 × $13.20) = $1056.00
Total Sales price = (number of shares × sales price per share)
Total Sales price = (80 × $45.68) = $3654.40
Commission = $27 + (80 × 0.03) = $29.40
Profit or loss = Total Sales price - Total purchase price - commission
Profit or loss = $3654.40 - $1056.00 - $29.40
Profit = $2569.00
