Organizations That Process Natural or Basic Resources as Raw Materials

question 26

Multiple Choice

Organizations that process natural or basic resources as raw materials or other essential inputs to obtain their outputs will locate near their resources if one of the following conditions holds:

• A)High economies of scale exist for the product
• B)The raw material can be shipped long distance before being processed
• C)There is a large loss in size or weight during processing.
• D)Both A and C

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Definitions:

Income Tax Withholdings

Taxes an employer deducts from employees' wages and pays directly to the government as a part of employees' income tax obligations.

IRS

The Internal Revenue Service, a U.S. government agency responsible for the collection of taxes and enforcement of tax laws.

Estimated Payments

Estimated Payments are periodic prepayments of taxes on income that is not subject to withholding, such as self-employment income, interest, and dividends.

Subject to Withholding

Income that is subject to tax withholding by the payer, which includes wages, certain types of gambling winnings, and other payments.