When General Motors Provides Payments or Price Reductions to Its

question 47

Multiple Choice

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ________.

• A)trade discount
• B)functional discount
• C)allowance
• D)promotional allowance
• E)trade credit

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Definitions:

Fewer than 100 Shareholders

A characteristic of some business entities, like S-corporations, which limits the number of shareholders to maintain eligibility for certain tax benefits.

Model and Revised Acts

Model and Revised Acts are standardized legislative drafts provided as a suggestion for lawmaking bodies to adopt or adapt, aiming to create uniformity across jurisdictions.

Diversity of Citizenship

A legal requirement for federal jurisdiction, where parties involved in a lawsuit are citizens of different states or countries.

Principal Office

The main location or headquarters of a corporation where official business is conducted; often listed in legal documents.