What is the purpose of specialized small business investment companies?
A. They extend credit by vendors on purchases of inventory, equipment, and supplies.
B. They sell common stock to the public through a regulated board such as Nasdaq without the hassle of an initial public offering.
C. They assist socially and economically disadvantaged businesses with venture capital.
D. They allow small businesses to reap tax advantages by selling stock shares to workers.
Answer: C
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Which of the following is NOT a part of the HURIER model?
a. recognizing b. understanding c. interpreting d. evaluating
What is the aim of tax equalization as a part of compensation?
a) Provide extra money in case of tax discrepancies b) Lower the tax obligation of the organization c) Provide that expatriates neither gain nor lose as a result of taxation d) A bonus to incentivize expatriates.
Courts often find that gambling contracts are illegal
Indicate whether the statement is true or false
Bourland Corporation is considering a capital budgeting project that would require investing $80,000 in equipment with an expected life of 4 years and zero salvage value. Annual incremental sales would be $250,000 and annual incremental cash operating expenses would be $180,000. The project would also require a one-time renovation cost of $40,000 in year 3. The company's income tax rate is 30% and its after-tax discount rate is 8%. The company uses straight-line depreciation. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The income tax expense in year 2 is:
A. $12,000 B. $3,000 C. $15,000 D. $21,000