E-Distributors

question 14

Multiple Choice

E-distributors:

• A) make money by charging a mark-up on products they distribute.
• B) usually operate "private" markets.
• C) operate in vertical markets.
• D) focus on selling direct products.

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Definitions:

Publicly-traded Domestic Corporation

A company registered in the U.S. that sells its stocks to the public on at least one stock exchange.

DRD

Dividends-Received Deduction, a tax deduction received by a company for the dividends it gets from its investments in other companies.

AMT

The Alternative Minimum Tax, a parallel tax system in the United States designed to ensure that individuals and corporations pay at least a minimum amount of taxes.

Small Corporations

Businesses typically characterized by a limited number of shareholders, assets, and revenues, and may qualify for certain tax benefits and simpler regulations.