Which of the Following Statements Best Reflects the Approach State

question 123

Multiple Choice

Which of the following statements best reflects the approach state and local governments take to influence the location decisions of businesses? State and local governments:

• A) often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid.
• B) try to avoid competition with other areas, because such competition usually backfires and creates ill will.
• C) no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the results.
• D) work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to locate in their area.

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Definitions:

Original Cost

Original Cost refers to the initial monetary value of an asset or investment at the time of purchase, before any depreciation, amortization, or impairment charges are applied.

Accumulated Depreciation

The cumulative depreciation expense registered for an asset from the time it was initially utilized.

Commercial Substance

An accounting principle that transactions should result in a real change to the economic circumstances of a company, as opposed to being conducted for appearance's sake.

Invoice Price

The amount shown on an invoice as the price of goods or services, prior to any discounts or adjustments.