An excess earnings accumulation tax is levied when ________
A) shareholders receive dividends which exceed a firm's earnings
B) firms do not pay dividends in order to delay the owners' tax liability
C) firms do not pay dividends to reinvest in the firm
D) earnings exceed accumulated dividends over the years
B
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Which of the following is NOT one of the factors that encourage extended operating hours?
a. Availability of employees to work during "social" hours. b. Economic pressure from consumers. c. Changes in legislation. d. Economic incentives to improve asset utilization. e. Automated self-service facilities.
Which one of the following statements regarding the economic order quantity (EOQ) is TRUE?
A) The EOQ model combines several different item orders to the same supplier. B) If an order quantity is larger than the EOQ, the annual holding cost for cycle inventory exceeds the annual ordering cost. C) The EOQ model assumes a variable demand pattern. D) When the interest rate drops, the inventory holding cost decreases and the EOQ decreases.