In the context of factors of production, which of the following statements is true of entrepreneurs?
A. They are people who write and establish government policies.
B. They avoid taking the risk of launching and operating their own businesses.
C. They thrive in an environment that supports economic freedom.
D. They are rarely motivated by any profit incentive to run a business.
Answer: C
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People in the United States are more formal when compared to people of other cultures
Indicate whether the statement is true or false.
Telling the truth about any negative aspect of a product or service usually ________.
A. means that you are dishonest B. annoys your customer C. gains your customer's trust D. makes a customer think you are up to something
On May 2, Lace Corp, an appliance wholesaler, offered to sell appliances worth $3,000 to Parco, Inc, a household appliances retailer. The offer was signed by Lace's president and provided that it would not be withdrawn before June 1 . It also included the shipping terms: "F.O.B.—Parco's warehouse.". On May 29, Parco mailed an acceptance of Lace's offer. Lace received the acceptance June 2
Which of the following is correct if Lace sent Parco a telegram revoking its offer and Parco received the telegram on May 25? a. A contract was formed on May 2. b. Lace's revocation effectively terminated its offer on May 25. c. Lace's revocation was ineffective because the offer could not be revoked before June 1. d. No contract was formed because Lace received Parco's acceptance after June 1.
Smartmoney, Inc. was formed by three wealthy dentists to pool their investment funds. They each invested $200,000 in the corporation, which was immediately used to purchase stocks to be held as investments. The first year, the corporation received dividends of $70,000 and filed a tax return paying a corporation tax in the amount of $7,350 [($70,000 dividends - $35,000 DRD) × .21 = $7,350]. The
IRS audits this corporation and sends a tax bill in the amount of $12,530 ($62,650 UPHCI × 0.20 = $12,530) plus underpayment penalty and interest. What is this additional tax and what should the dentists do about it? What action(s) do you recommend the corporation take for the tax year in question and subsequent tax years? What will be an ideal response?