For purposes of the unrelated business income tax (UBIT), a trade or business consists of any activity conducted for the production of income through the sale of merchandise, or from the performance of services for which profits have been earned during at least two of the five previous years
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: An activity need not generate a profit to be classified as a trade or business.
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Similar to import tariffs, quotas on imports result in
a. higher levels of consumer surplus. b. lower levels of producer surplus. c. higher prices for domestic consumers. d. higher prices for foreign consumers.
Joe keystones every product's price in his skateboard store. Therefore, the initial mark-up percent that Joe uses is
A. 10 percent. B. 25 percent. C. 100 percent. D. 50 percent. E. 200 percent.
To accurately determine the financial performance of a company, it is necessary to compare performance ________
A) with a competing company B) to the budget C) with companies in different industries D) only with profitable companies
Discuss ways in which laws and regulations promote economic growth