Why should we be more concerned with the marginal tax rate rather than the average tax rate?
What will be an ideal response?
For financial decision making, it's the marginal tax rate rather than the average tax rate that we are concerned with.
Why? Because, generally speaking, the marginal rate is the rate the corporation pays on the next dollar that is earned.
We always want to consider the tax consequences of any financial decision. The marginal tax rate is the rate that will
be applicable for any changes in earnings that occur as a result of the decision being made.
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Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform the consumers that its products offer the same features and quality as the competitor's. This is an example of a(n) ________ attack
A) guerilla B) frontal C) encirclement D) bypass E) flank
The most important trading area for a retailer to study is the _____
a. fringe trading area b. secondary trading area c. primary trading area d. trading-area overlap
Forecasting and the accompanying managerial decisions are extremely difficult when either the supply of raw materials or the demand for the finished product is highly unpredictable
Indicate whether the statement is true or false.
Consumer Credit Union pays Derby $10,000 to design an ad campaign. The next day, Derby tells the credit union that he has accepted a job in Boston and cannot design the campaign. As compensatory damages, the credit union can recover
A. $100,000. B. $10,000. C. $1,000. D. $0.