Which of the Following Activities Create State Income Tax Nexus

question 29

Multiple Choice

Which of the following activities create state income tax nexus?

• A) Selling products over the Internet to customers in the state. The products are delivered by U.S. mail.
• B) Traveling salespersons soliciting orders for tangible goods from customers in the state.
• C) Ownership of manufacturing and distribution facilities within the state.
• D) All of the above activities create state income tax nexus

---

Definitions:

Foreign Currency Approach

A method used in financial analysis that converts all values to a common currency to evaluate the financial performance of multinational companies.

Cash Inflows

Money or other forms of financial assets that come into a company, typically from operations, financing, or investing activities.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Inflation Rate

The percentage increase in the price level of goods and services over a period, reducing purchasing power.