Christian, the President and Sole Shareholder of Venture Corporation, Is

question 80

Essay

Christian, the president and sole shareholder of Venture Corporation, is paid an annual salary of $150,000. Christian would like to draw additional funds from the corporation but is concerned that increased salary might cause the IRS to contend his salary is unreasonable. Further, Christian does not want the corporation to pay any dividends. He would like to contribute $40,000 to his alma mater to establish scholarships for needy students. If Christian makes a pledge to the university to provide $40,000 for scholarships, would there be a problem if Venture Corporation paid the pledge on his behalf? Explain.

Understand the concept and implications of the kinked demand curve in oligopolistic markets.

Comprehend the conditions that lead to price rigidity in oligopolistic markets.

Analyze the impact of oligopoly on market competition and the likelihood of collusion.

Interpret the Herfindahl-Hirschman and concentration ratios as measures of market concentration and competition.

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Definitions:

Nonverbal Behavior

Refers to the communication methods that do not involve words, such as facial expressions, body language, and gestures.

Proxemics

The study of how humans use space in communication and the effects that population density has on behavior, communication, and social interaction.

Physical Closeness

The proximity or touching between individuals that can foster emotional bonding or therapeutic benefits.

Intrusive

Unwanted or disturbing thoughts, images, or urges that enter the mind, often causing distress or discomfort.