What is a personal holding company?
What will be an ideal response?
A personal holding company is any corporation that (1) has five or fewer individual shareholders who own more than 50% of the corporation's outstanding stock at any time during the last half of its tax year, and (2) has personal holding company income that is at least 60% of its adjusted ordinary gross income for the tax year. Corporations that have certain special tax status generally are excluded from the PHC definition. Among those excluded are S corporations and tax-exempt organizations.
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For frequently purchased products, scanner panel data provide information about:
A) consideration set. B) inert set. C) evoked set. D) purchase set.
With respect to property, under the common law, minors:
A. are entitled to the return of their property given as consideration even if they have been ratified. B. are entitled to the return of their property given as consideration, even if that property is possessed by a third party at the time of disaffirmance. C. are entitled to the return of their property given as consideration, except in cases where the property is possessed by a third party. D. are entitled to the return of their property given as consideration only upon attaining majority.
During the growth stage of the product’s life cycle, companies will need to ______.
A. increase capacity B. keep capacity constant C. reduce capacity D. adjust product pricing
How are purchase returns and purchase discounts recorded by a company using the periodic inventory system?
A) As a reduction to the Purchases account. B) In contra-accounts to the Purchases account. C) As operating expenses. D) As miscellaneous expenses.