Match Each Statement with the Correct Term Below

question 25

Multiple Choice

Match each statement with the correct term below.
-Loss-of-income damages

• A)Dues, uniforms, subscriptions.
• B)Intended to punish and are taxable.
• C)Taxable if from an employer-provided policy.
• D)Any personal wrong, such as libel, slander, or assault.
• E)Excludable amount limited to gross profit percentage.
• F)Gratuitous and not a form of compensation for services.
• G)Excludability requires that it must be a condition of employment.
• H)Excluded if for compensatory payments for sickness or personal physical injury.
• I)To replace lost earnings and is excluded if due to personal physical injury.
• J)Excluded if provided on the employer's business premises and for the convenience of employer.

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Definitions:

Distributorship

A type of franchise in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory.

Franchisor

A person or company that grants the license to a third party for the conducting of a business under the franchisor's marks and methods.

Exclusive Territory

A designated geographic area where a specific party has the exclusive right to operate, sell, or perform services.

Manager-managed LLC

A form of Limited Liability Company (LLC) where management responsibilities are assigned to designated managers rather than all members.