Because of its quality investments, Carolina Corporation has always generated 30% to 40% of its gross income from passive sources. In the current year, Carolina sold a block of stock in a company it acquired several years ago. As a result of the sale, the corporation realized a substantial long-term capital gain that will increase this year's investment income from 40% to 70% of gross income. Explain to Carolina's president why she should or should not be worried about the personal holding company tax. (Assume that the stock ownership requirement is met.)

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Answer 1

Answer:

Answer:

It is funny how doing so well in business is not always completely beneficial. First of all, Carolina's president should be worried that her can be considered a personal holding company (PHC). PHC receive at least 60% of its adjusted ordinary gross income (AOGI) from passive sources. The other requirement is that 50% of its stock is owned by five or fewer individuals or companies. Being a PHC means more taxes, that is why Carolina Corporation should try to avoid being considered a PHC.

Carolina can avoid being considered a PHC if its other investment income (income from passive sources) along with this investment income, does not exceed 60% of its AOGI.

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What is persecution?

Answers

Persecution is the act of mistreating or oppressing someone based on their ethnicity, political views, or religious beliefs.

Persecution:hostility and ill-treatment, especially because of race or political or religious beliefs.

The key to success in the "prisoner's dilemma" game is to always be competitive. withdraw when one's partner chooses a competitive response. trust one's partner. respond randomly.

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Answer:

trust one's partner.

Explanation:

The Prisoner's Dilemma is a game well known among Game Theory, it refers to the decision making of individuals in a context of interaction with other people, where the key to success is to trust your partner, so that you can win the game . In this type of game we are able to insert ourselves in different situations that occur in everyday life or, even, in the corporate world.

In it we have the following situation:

Two suspects are arrested, but the police do not have enough evidence to convict them. These suspects stay in separate cells and have no contact whatsoever, so they need to decide between cheating or cooperating with the police and this has some advantages or consequences.

The key to success in the "prisoner's dilemma" game is to

c) trust one's partner.

In a certain economy, people save some part of their income in the financial sector and use the remaining part for consumption. The government decides to increase the tax rates for everyone in that economy. What effect will the tax increase have on savings and investment in the economy?

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Answer:

Savings decrease, and investment decreases.

Explanation:

A government normally increases taxes to boost it's tax revenue but this also results in the decrease of savings and investments. Higher taxes leaves consumers with less disposable income which then discourages them from saving and investing.

To answer the question above as to what effect will the tax increase have on savings and investment in the economy when the government decides to increase the tax rate for everyone in that sector is that people will be hesitant to save and invest, they'll be sure to weigh in as to which would be the proper move if the tax increase will cripple their investments or savings. Tax increase harms economic growth in a sense that it will affect peoples savings and investment which plays a key role in the economy.

The total amount of financial assets, minus any debts, is referred to as?

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The answer is Net Assets. The total assets minus the total liabilities or debts are defined as Net Assets. Net Assets could be defined in different ways. For example, in a corporation the net assets are reported as the stockholders equity. Some even refer the net assets as wealth.

Making sure that data collected on customer trends is organized is one way technology can help a business.True

False

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Answer:

True

Explanation:

I would say this statement in TRUE. Here is my reasoning: Data collection is information learned by a business. For example: If you are a moving company and you paid for a TV commercial. Wouldn't you like to know how many people are calling you for moves based on that commercial? Of course. So asking your customers "where did you hear about us?" and hearing "The TV commercial" can identify that not only is your commercial working but that it is paying for itself with the business coming your way. Data collected is a GREAT way to run a business successfully.

Three challenges that bricks construction may encounter when trying to implement their corporate social investment plan in the local community

Answers

There are many probable challenges the bricks construction may encounter if they implement their corporate social investment plan in a local community.

Some of these are:
- There might be not enough funds to implement the plan
- Employees may lack the skills in the certain project
- The challenge to sustain during the economic downturns

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