Which of the Following Is the Best Example of the Proximity

question 73

Multiple Choice

Which of the following is the best example of the proximity rule that,for service firms,proximity to market is the most important location factor?

• A)Soft drinks are bottled in many local plants,where carbonated water is added to proprietary syrups that may have been shipped long distances.
• B)Few people will travel out-of state for a haircut.
• C)Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital.
• D)Furniture makers choose to locate near the source of good hardwoods,even though it means locating near other furniture manufacturers.
• E)Metal refiners (smelters)locate near mines to accomplish significant weight reduction near the metal's source.

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Definitions:

Form 1116

Form 1116 is used by taxpayers to claim the Foreign Tax Credit, which is a credit for income taxes paid to a foreign country, reducing the U.S. tax liability on foreign income.

Foreign Tax Credit

A tax credit that allows taxpayers to offset income taxes paid to foreign governments against their U.S. tax liabilities, to avoid double taxation of the same income.

Earned Income Credit

The Earned Income Credit (EIC) is a refundable tax credit for low- to moderate-income working individuals and families, particularly those with children, to reduce poverty and encourage work.

Nonrefundable Credit

A tax credit that can only reduce a taxpayer’s liability to zero, but unlike refundable credits, any excess is not paid out to the taxpayer.