Why would a company favor an entity plan over a cross-purchase plan?

A) Tax benefits
B) An entity plan has fewer policies
C) When they have a lot of so-called "key employees"
D) When a buy-and-sell agreement is not feasible


B

Business

You might also like to view...

Normally every company that asks to be considered for an advertising campaign will prepare a creative pitch as part of the application

Indicate whether the statement is true or false

Business

If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is

a. $2,060,000 b. $2,000,000 c. $2,100,000 d. $1,940,000

Business

An example of deferred revenue is Unearned Rent

Indicate whether the statement is true or false

Business

A benefit of MRP is a(n) ______.

A. increase in work-in-progress inventory B. increase in finished goods inventory C. increase in inventory costs D. decrease in inventory costs

Business