As a Sales Manager, Arnold Scwartzfinkle Has Been Causing You

question 78

Multiple Choice

As a sales manager, Arnold Scwartzfinkle has been causing you more than one sleepless night and the reason might be found in the following data:
As Arnold's sales manager, what most likely going to ask him to do?

• A) nothing. The problem is with Joyce, as she is apparently cutting prices on low-markup products.
• B) require him to cut back on his expenses so his profit contribution would increase.
• C) pressure him to quit pushing items with low markups and cutting prices to gain sales volume.
• D) both b and c of the above.
• E) none of the above.

---

Definitions:

Net Capital Loss

The financial loss that occurs when the total capital losses from investments exceed the total capital gains in a fiscal year.

Carry Back

A tax provision that allows a business to apply current year net operating losses to past tax years to receive a tax refund for previously paid taxes.

Carry Forward

A tax provision allowing taxpayers to apply a current year's unused tax credits or losses to future tax years.

80% Test

A requirement or threshold in various contexts where at least 80% of some criteria must be met, but in finance, it often relates to rules around shareholder voting rights or dividend distribution policies.