You have just been asked to serve as a host for a visitor from France who is very interested in the American legal system and the formation of law in the United States. How would you explain the system of law in this country to your guest?
France has a civil law system, which is based upon the Napoleonic Code, whereas the U.S. has a common law system, which is based on the English common law. The common law depends upon the judiciary as a major source of law and on the adversary system of settling disputes. In an adversary system, the parties, not the court, must initiate and conduct litigation. The courts in a common law system develop a body of law that serves as precedent for determining later disputes. The strength of common law is its ability to adapt to change without losing its sense of direction.
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Transfer pricing is a strategy that may be used by MNEs to:
A) reduce consolidated corporate income taxes. B) partially finance a subsidiary in another country. C) transfer funds from a subsidiary to the parent corporation. D) all of the above
What are the tax consequences to Whitney who owns 50% of Museum Corporation, a qualifying S corporation that is a calendar-year entity, if Museum Corporation reports $60,000 of taxable income? How would your answer change if Museum Corporation reported a $40,000 loss?
What will be an ideal response?
The fact that price fixing helps consumers or protects competitors from ruinous competition can be used as a valid defense against the charge of price discrimination.
Answer the following statement true (T) or false (F)
A cost that would be included in product costs under both absorption costing and variable costing is:
A. variable selling expenses. B. factory rent. C. supervisory salaries. D. variable manufacturing costs.