Mr Smith Resides in a State with a 6% Sales

question 30

Multiple Choice

Mr. Smith resides in a state with a 6% sales and use tax. He recently traveled to another state to buy furniture and paid that state's 7% sales tax. Which of the following statements is true?

• A) Mr. Smith is entitled to a refund of 1% of the purchase price of the sailboat.
• B) Mr. Smith does not owe a use tax to his home state.
• C) Mr. Smith's use tax liability to his home state equals 6% of the purchase price of the sailboat.
• D) None of the above is true.

---

Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when managing financial assets or decisions for them.

Quorum

The minimum number of members that must be present at a meeting to make the proceedings of that meeting valid.

Shareholder Meetings

Gatherings of a corporation's shareholders, held to discuss company affairs, make decisions, and vote on corporate governance matters.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares owned by the company’s officers and insiders.