Which of the Following Statements About Manufacturers Is FALSE

question 27

Multiple Choice

Which of the following statements about manufacturers is FALSE?

• A)The majority of U.S.manufacturers are small,with three-quarters having fewer than 20 employees.
• B)Most U.S.factories operate in large metropolitan areas.
• C)The greatest growth in manufacturing has occurred in countries where labor is cheapest.
• D)NAICS codes help marketers classify different types of manufacturing businesses.
• E)Manufacturing output in the United States is shrinking.

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Definitions:

Section 1231 Loss

A loss from the sale or exchange of property used in a trade or business that can be deductible for tax purposes.

Section 1231 Property

Refers to a type of property, both tangible and depreciable, used in a business and held for more than one year, which qualifies for tax treatment that combines aspects of capital gains and ordinary income tax rates.

Trade or Business

Activity conducted for the purpose of earning income or profit, involving regular and continuous activities in a particular field.

Deemed Worthless

A term referring to assets that have become valueless and are recognized as a loss for tax purposes.