What is the federal income tax treatment of accrued interest income on stripped Treasury securities?
What will be an ideal response?
Interest income from Treasury securities is subject to federal income taxes but is exempt from state and local income taxes. A disadvantage of a taxable entity investing in stripped Treasury securities is that accrued interest is taxed each year even though interest is not paid. Thus these instruments are negative cash flow instruments until the maturity date. In brief, they have negative cash flow because tax payments on interest earned but not received in cash must be made.
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All of the following are guidelines an organization can use to promote the challenging of the status quo, except
A. establishing a "culture of dissent." B. forcefully creating a sense of urgency. C. creating a result-based reward system. D. fostering a culture that encourages risk taking.
How can unclear objectives be made clearer? Illustrate with an example
What will be an ideal response?
Refer to the data given in the table for Acme Widgets, Inc. Solve the transportation problem using Excel Solver. (Remember that in balanced transportation problems all constraints—except the non-negativity constraints of the decision variables—should be set as an equal to (=) sign in the Excel Solver dialogue.) At the optimum solution, the highest transportation costs are from ______.
a. Riverside to Visalia
b. Bryan to Dayton
c. Montgomery to Visalia
d. Riverside to Huntsville
A recent meeting of the Council of Supply Chain Management Professionals featured an executive from Dell, which is known for its ability to customize computers to customers' needs as well as their ability to provide quality products at economical prices through their retail channel. The executive discussed the firm's capabilities regarding the ability to produce products that are "built-to-order" and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, Dell began forging relationships with retailers such as Walmart to provide a limited number of computer models in the retailers' stores. In order to fulfill the orders to Walmart, Dell was
required to make changes in its production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, Dell was able to shift from a focus on air transportation to over-the-road trucking, which enabled it to cut costs in some areas. As Dell shifted from a "build-to-order" manufacturer to a "make-to-stock" manufacturer, it also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like Walmart, which requires its vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. Dell's ability to modify its business model by forging relationships with retailers such as Walmart as well as customer insights has helped the company achieve its revenue and profitability goals. ? Which environmental factor is exemplified by the customer trend that consumers were no longer willing to wait 7 to 10 days for a "build-to-order" computer and led Dell to modify its business model to become a "make-to-stock" manufacturer? A. Economic B. Competitive C. Legal and regulatory D. Sociocultural