Which one of the following is a primary managing activity?

Basic Partnership, a cash-basis, calendar-year entity, began business on February 1, 2016. Basic incurred and paid the following in 2016: Filing fees incident to the creation of the partnership-$ 3,600 Accounting fees to prepare the representations in offering materials-12,000 Basic elected to amortize costs. What is the maximum amount that Basic may deduct on the 2016 partnership return?

a) $3,300 b) $3,600 c) $5,000 d) $0

Orange Inc, a cell-phone manufacturer, is an all equity firm. At the end of the current year, the CFO expects EBIT to be $100 and the same earnings are expected annually in perpetuity

The company is not growing so CAPEX and investments in net working capital are zero. The cost of equity for Orange is 10%. Orange's prime competitor is Verge Inc, manufacturer of the Blueberry smartphone. Verge is identical to Orange Inc in every respect except that Verge has $130.44 of long term debt outstanding. What is the value of Verge Inc? The corporate tax rate is 40%. A) $500 B) $600 C) $630 D) $652 E) $1,000