Which of the following is the point at issue between Huan and his co-owners?
A) whether the soda company will ultimately be profitable enough to sell
B) if the soda company should be sold right away
C) whether the soda company can gain new customers
D) if the owners should hire staff
E) whether the owners have a viable business
Answer: D
Explanation: D) Huan and his co-owners disagree over whether they should hire staff to maintain the daily operations of their business. Choices A and B relate to selling the company, and we don't know how any owners feel about that. Huan and the other owners presumably agree on Choices C and E, that the company can gain new customers and that it's currently a viable business.
You might also like to view...
What is the difference between assertive and aggressive behavior?
What will be an ideal response?
Consider a lawn mower that fails 6 times in 240 hr of operation. The failure rate of the lawn mower is ______.
A. 0.025 B. 0.040 C. 0.020 D. 0.030
Viking Corporation is owned equally by Sven and his wife, Olga, each of whom hold 100 shares in the company. Viking redeemed 75 shares of Sven's stock for $2,000 per share on December 31, 20X3. Viking has total E&P of $500,000. What are the tax consequences to Viking because of the stock redemption?
A. No reduction in E&P because of the exchange. B. A reduction of $150,000 in E&P because of the exchange. C. A reduction of $375,000 in E&P because of the exchange. D. A reduction of $187,500 in E&P because of the exchange.
Tavis Robotics Corporation has developed a new robot-model FI-73-that has been designed to outperform a competitor's best-selling robot. The competitor's product has a useful life of 10,000 hours of service, has operating costs that average $4.60 per hour, and sells for $109,000. In contrast, model FI-73 has a useful life of 30,000 hours of service and its operating cost is $2.60 per hour. Tavis has not yet established a selling price for model FI-73.From a value-based pricing standpoint, what range of possible prices should Tavis consider when setting a price for FI-73?
A. $109,000 ? Value-based price ? $187,000 B. $109,000 ? Value-based price ? $387,000 C. $278,000 ? Value-based price ? $387,000 D. $187,000 ? Value-based price ? $278,000