For purposes of the unrelated business income tax (UBIT), a trade or business consists of any activity conducted for the production of income through the sale of merchandise, or from the performance of services for which profits have been earned during at least three of the five previous years.
Answer the following statement true (T) or false (F)
False
Rationale: An activity need not generate a profit to be classified as a trade or business.
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At the end of an accounting period, the balance in the Finished Goods Inventory account is made up of the costs of products completed but not sold as of that date
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
If a loss is expected on subsequent disposal of a business segment, the estimated loss is recognized in the financial statements as of the measurement date.
Most defensive mergers occur as a result of managers' actions to maximize shareholders' wealth.
Answer the following statement true (T) or false (F)
In the context of a public offering, a(n) _____ is a complex document that must include a firm's key financial statements plus additional information about the company's management, its properties, its competition, and the intended uses for the funds it plans to obtain from the offering.
A. registration statement B. corporate bylaw C. article of incorporation D. franchise agreement