In Toronto,Black and Decker Has Granted Nine Distributors the Rights

question 127

Multiple Choice

In Toronto,Black and Decker has granted nine distributors the rights to carry its products.It hopes customers will seek out the Black and Decker products.Black and Decker uses which of the following type of distribution?

• A) centralized
• B) exclusive
• C) demand-pull
• D) selective

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Definitions:

Depreciation Tax Shield

A reduction in taxable income resulting from the ability to deduct depreciation expenses, thereby lowering the tax liability for a business.

CCA Deduction

Stands for Capital Cost Allowance deduction, a tax deduction in certain jurisdictions that allows businesses to deduct the depreciated value of capital assets.

Corporate Tax Rate

The tax rate imposed on the net income of a corporation by the government.

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income, such as the interest on debt.