Which of the Following Statements Concerning the Nexus Required for a State

question 99

Multiple Choice

Which of the following statements concerning the nexus required for a state to tax income is false?

• A)Maryland has nexus if the corporate headquarters is located in Baltimore.
• B)Company-owned trucks driving through Arizona to deliver goods to customers residing in California creates nexus in Arizona.
• C)Maine has nexus if a company has retail outlets located in Maine malls.
• D)A New York corporation can send traveling salespeople into Massachusetts to solicit orders for tangible goods without creating nexus in Massachusetts.

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Definitions:

Monthly Lease

A contract outlining the rental agreement for a property on a month-to-month basis.

Health Insurance

Health Insurance is a type of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Diminishing Returns

The principle that adding an additional factor of production results in smaller increases in output after a certain point.

Marginal Costs

The expense associated with the production of an extra unit of a product or service.