According to Milton Friedman, an executive imposes taxes on shareholders when:
a. He or she uses corporate funds for social causes.
b. He or she fails to take all available deductions.
c. He or she pays dividends.
d. All of the above
.A
You might also like to view...
A direct tax on imports to make them more expensive is known as a ______.
a. tariff b. embargo c. subsidy d. quota
In a job-order costing system, the net cost of normal spoilage is equal to
a. estimated disposal value plus the cost of spoiled work. b. the cost of spoiled work minus estimated spoilage cost. c. the units of spoiled work times the predetermined overhead rate. d. the cost of spoiled work minus the estimated disposal value.
Which of the following scenarios best exemplifies a leveraged buyout of a microchip manufacturer, Rigoletto Inc.?
A. Rigoletto buys back a large amount of its own shares from the stock market. B. A private equity firm, Stormcloud Inc., buys a large number of shares of Rigoletto in order to publicly trade it under a new name. C. The owner of another company buys all the outstanding shares of Rigoletto in order to take it private. D. Rigoletto sells all its shares and declares bankruptcy.
Ron is an accountant who was contacted by Zebra Toy Company to prepare financial statements. Zebra Toy Company told Ron that it wished to present these documents to Lion Wholesalers, Inc., a large supplier of toys. If Lion is convinced that Zebra Toy Company is financially solid, it will issue Zebra a large line of credit. ? After Ron prepares the financial documents, Zebra presents the information to Lion Wholesalers and also to Tiger Toy Company, another wholesaler of toys. Zebra wishes to obtain a line of credit from Tiger as well as from Lion. If Ron committed a serious error by overstating Zebra Toy Company's financial soundness and the two creditors, Lion and Tiger, are damaged as a result, can these third parties recover damages from Ron? Explain.
What will be an ideal response?