Businesses May Immediately Expense Research and Experimentation Expenditures, or They

question 45

True/False

Businesses may immediately expense research and experimentation expenditures, or they may elect to capitalize these costs and amortize them using the straight-line method over a period of not less than 60 months.

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Definitions:

Proprietorships

Business entities that are owned and operated by a single individual, with no legal distinction between the owner and the business.

Labor Supply

The collective amount of time employees are prepared and capable of working for a specified pay rate, during a certain timeframe.

Perfectly Elastic

A situation in which any small change in price leads to an infinite change in quantity demanded or supplied.

Payroll Tax

Charges instituted on both employers and workers, typically a percentage of the employment remunerations.