Nicholas owned stock that decreased in value by $20,000 during the year, but he did not sell the stock. He earned $45,000 salary, but received only $34,000 because $11,000 in taxes were withheld. Nicholas saved $10,000 of his salary and used the remainder for personal living expenses. Nicholas's economic income for the year exceeded his gross income for tax purposes
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: Nicholas's economic income would be reduced by the unrealized losses on his stock. However, these unrealized losses are not recognized for tax purposes until the securities are sold.
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The decision-making dimension of the Myers-Briggs Type Indicator relates to the
A. individuals' tendency to be flexible and adaptable. B. individuals' interpersonal strength and vitality. C. steps or actions individuals take when making decisions. D. confidence and speed with which decisions are reached. E. amount of consideration given to others' feelings when making a decision.
Merging involves ________
A) reducing the number of organizational levels to get closer to the customer B) removing barriers that separate organizational departments C) partnering with fewer but better value-adding suppliers D) working more closely with customers to add value to their operations E) acquiring firms in the same or complementary industries
Corporate income statements must be prepared in multistep form
Indicate whether the statement is true or false
Which of the following is true of changes in the organization of distribution channels?
A) Developing new channels seldom causes conflict with a company's established channels. B) To remain competitive, product and service producers must use fewer marketing channels. C) The growth of the Internet threatens many brick-and-mortar companies with disintermediation. D) Companies have fewer channel-options today than they did in the past due to economic problems. E) Advances in technology have decreased the number of channels available to entrepreneurial firms.