In the Broadest Application of the Unitary Theory,the Unitary Business

question 51

Multiple Choice

In the broadest application of the unitary theory,the unitary business files a combined tax return using factors and income amounts for all affiliates:

• A)organized in the U.S.
• B)organized in North America.
• C)organized anywhere in the world.
• D)owned more than 50% by other affiliates in the group.
• E)owned more than 80% by any other affiliate in the group.

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Definitions:

Unit Fixed Costs

The consistent expenses incurred by a company for each unit produced that do not change with the volume of production.

Level of Activity

A measure of the volume of production or operations, often influencing costs and profitability in a business.

Variable Costs

Expenses that vary in relation to the amount of products or services a company generates.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business over a certain period.