Under PL86-272, Which of the Following Transactions by Itself Would Create

question 59

Multiple Choice

Under P.L.86-272, which of the following transactions by itself would create nexus with a state?

• A)Inspection by a sales employee of the customer's inventory for specific product lines.
• B)Using an independent contractor who acts as a manufacturer's representative for the taxpayer through a sales office in the state.
• C)Executing a sales campaign, using an advertising agency acting as an independent contractor for the taxpayer.
• D)Maintenance of inventory in the state by an independent contractor under a consignment plan.

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Definitions:

Market Demand

The total quantity of a product that consumers are willing and able to purchase at various prices during a specific time period.

Marginal Costs

The additional financial burden of creating one more unit of a product or service.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its responsiveness to price changes.

Supply Curve

A visual diagram that illustrates the connection between a product's price and the amount of the product that sellers are ready and able to offer.