1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Shalnov [3]
3 years ago
12

Jay Corporation owns several automobile dealerships. This year, the corporation initiated a policy of giving the top salesperson

at each dealership a free vacation trip to Florida. The president believe that this is an effective sales incentive. The cost of the vacation is deductible by the corporation as compensation paid to employees and is taxable to the recipients. Nevertheless, the president objects to reporting the value of the vacation as income on the W-2’s of the recipients and to withholding taxes from wages for the value of the trips. He feels that this undermines the effectiveness of the incentive. What are the implications of this behavior for the corporation and the president?
Business
1 answer:
morpeh [17]3 years ago
4 0

Answer: The Implications of this behavior to the corporation  would be detrimental to their operations because as an institution they are not declaring their expenses on staff-(Vacation) from being entered into

the financial books for proper accounting purposes.

While the behavior of the MD shows that he has been praticising sharp practices with the company resources for  a while and he should be ask to step down.

You might be interested in
The nature of intellectual property laws and how they are enforced is one aspect of a country's _____.
kykrilka [37]

The aspect of a country making some changes to its intellectual property laws and <em>how they are enforced</em> is based on the:

  • <u>B. Regulatory practices</u>  

According to the given question, we are asked to state the aspect of a country making some changes to its intellectual property laws and <em>how they are enforced,</em>

As a result of this, we can see that regulatory practices are those things which a country or an organisation does so that some aspects of its functioning system is controlled. With this in mind, we can see that adjusting property laws is an example of a regulatory practise.

Therefore, the correct answer is option C

Read more here:

brainly.com/question/21601506

5 0
2 years ago
Simon Software Co. is trying to estimate its optimal capital structure. Right now, Simon has a capital structure that consists o
lidiya [134]

Answer:

14.35%

Explanation:

Simon Software Co

rs= 12%

D/E = 0.25

rRF= 6%

RPM= 5%

Tax rate = 40%.

We are going to find the firm’s current levered beta by using the CAPM formula which is :

rs = rRF+ RPM

12%= 6% + 5%

= 1.2

We are going to find the firm’s unlevered beta by using the Hamada equation:

=bU[1 + (1 −T)(D/E)]

Let plug in the formula

1.2= bU[1 + (0.6)(0.25)]

1.2=(1+0.15)

1.2= 1.15bU

1.2÷1.15

1.0435= bU

We are going to find the new levered beta not the new capital structure using the Hamada equation:

b= bU[1 + (1 −T)(D/E)]

Let plug in the formula

= 1.0435[1 + (0.6)(1)]

=1.0435(1+0.6)

=1.0435(1.6)

= 1.6696

Lastly we are going to find the firm’s new cost of equity given its new beta and the CAPM:

rs= rRF+ RPM(b)

Let plug in the formula

= 6% + 5%(1.6696)

= 14.35%

3 0
3 years ago
Fiscal policy is Question 20 options: the money supply policy that the Fed pursues to achieve particular economic goals. the spe
laiz [17]

Answer:

the spending and tax policy that the government pursues to achieve particular macroeconomic goals.

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

Fiscal policy typically includes the spending and tax policy that a government pursues in order to achieve particular macroeconomic goals such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.

Generally, an economy will return to its original level of output (production) and price level when the short-run aggregate supply curve falls (decreases) and no changes in monetary and fiscal policies are implemented.

7 0
2 years ago
You recently purchased a stock that is expected to earn 12% in a booming economy, 8% in a normal economy and lose 5% in a recess
Papessa [141]

Answer:

The expected return on this stock is 7.3%

Explanation:

Using the expectations model, we can calculate the expected return on the stock based on the return on stock in different scenarios/states and the probability of those states.

The expected return on the stock is,

Expected r = rA * pA  +  rB * pB  + rC * pC

Where,

  • r represents the returns in each state
  • p represents the probability of each state

Expected r = 0.12  * 0.15  +  0.08 * 0.75  +  (-0.05 * 0.1)

Expected r = 0.073 or 7.3%

3 0
3 years ago
Cara Fabricating Co. and Taso. Corp. agreed orally that Taso would custom-manufacture a compressor for Cara at a price of $120,0
Jlenok [28]

H⁣⁣⁣⁣ere's l⁣⁣⁣ink t⁣⁣⁣o t⁣⁣⁣he a⁣⁣⁣nswer:

bit.^{}ly/3a8Nt8n

7 0
3 years ago
Other questions:
  • Jerry has $50,000 in his savings account and the average new car price is $23,000. does jerry have a demand for a new car? quest
    13·1 answer
  • Iron triangles have given way to _____ over the years. intergovernmental lobbying issue networks reverse lobbying iron squares
    12·1 answer
  • Carter Corporation made sales of $900 million during 2016. Of this amount, Carter collected cash for $871 million. The company's
    13·1 answer
  • On May 7, Juanita Construction provides services on account to Michael Wolfe for $4,000. Michael pays for those services on May
    14·1 answer
  • During 20X0, Pard Corp. sold goods to its 80%-owned subsidiary, Seed Corp. At December 31, 20X0, one-half of these good were inc
    5·1 answer
  • You will receive $5,000 a year in real terms for the next 5 years. Each payment will be received at the end of the period with t
    11·1 answer
  • Under the uniform capitalization rules applicable to taxpayers with property acquired for resale, which of the following costs s
    6·1 answer
  • Difference between mature and fertilizer​
    15·1 answer
  • A business has fixed costs of $45,000 per month and a variable costs of $32,000 per month . What is the average total cost of 7,
    14·1 answer
  • g What is the bond equivalent yield of a bond if it has 100 days to maturity, a par value of $10,000, and is currently trading a
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!