Under PL86-272, Which of the Following Transactions by Itself Would Create

question 59

Multiple Choice

Under P.L.86-272, which of the following transactions by itself would create nexus with a state?

• A)Inspection by a sales employee of the customer's inventory for specific product lines.
• B)Using an independent contractor who acts as a manufacturer's representative for the taxpayer through a sales office in the state.
• C)Executing a sales campaign, using an advertising agency acting as an independent contractor for the taxpayer.
• D)Maintenance of inventory in the state by an independent contractor under a consignment plan.

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Definitions:

Self-contained Units

Independent or standalone sections within an organization or system, capable of operating or functioning independently.

Product Organization Design

The structuring of a company around its products or product lines to improve focus and accountability on product success.

Information Overload

A condition in which one is exposed to more information than can be processed, leading to difficulty in understanding or decision-making.

Functional Design

Pertains to a method of organization where activities are grouped together by common functions or specialties, like marketing or finance, within a company.