One Pitfall of Cost-Plus Pricing for the Buyer Is That

question 169

True/False

One pitfall of cost-plus pricing for the buyer is that the seller may increase costs to establish a larger profit base.

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Definitions:

Limited Liability Company

A company organization style that merges the protective limited liability of corporations with the advantageous pass-through taxation of sole proprietorships or partnerships.

State Law

consists of the laws and regulations enacted by the legislative bodies of individual states.

Passed Through

A term often used in finance and taxation to describe income, losses, or tax benefits transferred from one entity to another, such as in a pass-through entity.

Limited Liability Company

A business configuration that combines the beneficial limited liability of a corporation with the pass-through taxation system of partnerships or sole proprietorships.