Working in the Finance Department of a Firm That Operates

question 63

Multiple Choice

Working in the finance department of a firm that operates a chain of dry cleaning and tailoring shops,Demonte discovered that tax management is:

• A)an area of major concern.
• B)handled by his department,but is not a major concern because businesses that provide services are exempt from most taxes.
• C)not an area of concern for his department,since the accounting department prepares the tax returns.
• D)an activity of his department,but not a major concern because software now available automates the handling of taxes.

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Definitions:

Secured Party

An individual or entity that has a legal interest or lien on a debtor's property, secured by a security agreement, ensuring priority payment in case of debtor's default.

Collateral

Property or other assets that a borrower offers to a lender to secure a loan.

Court Order

An official directive issued by a judge that requires a party to do or refrain from doing something.

Bankruptcy Code

A federal law that outlines the various procedures for conducting bankruptcy cases, allowing debtors to eliminate or reorganize their debts under the supervision of the court.