Which of the Following Is Not a General Rule for Calculating

question 19

Multiple Choice

Which of the following is not a general rule for calculating the sales factor?

• A) Tangible personal property sales are sourced to the destination state.
• B) If the business does not have nexus in the destination state, the sales are thrown back to the state where the goods were shipped from.
• C) Services are sourced to the destination state.
• D) Government sales are sourced to the state where they were shipped from.

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Definitions:

Entry And Exit

Refers to the capability of businesses to freely enter into or exit from markets based on regulatory, economic, and market conditions, impacting competition and market dynamics.

Competitive Price-searcher

A market condition where businesses set their prices based on the competition, constantly seeking to offer the best value to attract customers.

Differentiated Product

A product that is distinct in some way from others in the same market, often used as a competitive advantage.

Entry Barriers

Obstacles that prevent new competitors from easily entering an industry or market, such as high startup costs or stringent regulations.