If the U.S. dollar currently buys more Brazilian goods than the Brazilian real buys American goods,
A) purchasing power parity holds at this moment.
B) the real should appreciate.
C) the dollar should appreciate.
D) Brazilian prices should fall.
E) U.S. prices should rise.
B
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A product line can also be lengthened by adding more items within the present range. There are several motives for line filling. Which of the following is one of them?
A) responding to senior management wishes B) responding to consumer wishes C) reaching for incremental profits D) reaching for incremental capacity E) responding to sales-force demands
Brooke is working on a business proposal for a prospective client. What is the primary question Brooke should ask as she gathers information for her project?
A) How much money does the client have? B) What does the client need to know about this topic? C) Does the client have a good reputation in the community? D) How can I make myself look good in the eyes of my client?
Elaine loaned her brother, Mike, $175,000 to purchase a new home. Elaine does not charge Mike any interest on the loan. What are the tax consequences to Elaine and Mike?
A. If Mike has no net investment income, Elaine does not have to treat the forgone interest as a gift. B. Mike can deduct the interest that he is deemed to have paid Elaine. C. Elaine is treated as having made a gift of the forgone interest on the $175,000 loan to Mike. D. Elaine only has to impute interest on $75,000 of the loan to Mike.
All cash inflows are taxable.
Answer the following statement true (T) or false (F)