Which of the Following Is a True Statement

question 33

Multiple Choice

Which of the following is a true statement?

• A) Meals are never deductible as a business expense.
• B) An employer can only deduct half of any meals provided to employees.
• C) The cost of business meals must be reasonable.
• D) A taxpayer can only deduct a meal for a client if business is discussed during the meal.
• E) None of these is true.

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Definitions:

Reference Pricing

Reference pricing is a pricing strategy wherein the price of a product is determined relative to the price of similar products or a benchmark in the market.

Penetration Pricing

A pricing strategy where the price of a product is set lower than the competitors' to gain market share rapidly.

Price Skimming

Price Skimming is a pricing strategy where a higher initial price is set for a new or innovative product, gradually lowering the price over time as the market saturates or competition increases.

Psychological Pricing

Setting the price of a product in a way that will alter its perception by customers.