Fact Pattern 9-B1 (Questions B1-B3 Apply)

question 26

Multiple Choice

Fact Pattern 9-B1 (Questions B1-B3 apply)
Great Looks Clothing Corporation sends daily e-mail ads to its previous customers and those who have opted to receive the notices.Hot Trends,Inc.,sends e-mail ads to any e-mail address that Hot Trends can find on the Web or otherwise generate.Ilene sends e-mail notes to her friends,relatives,and co-workers,discussing personal issues and recommending products or services that she likes.
-Refer to Fact Pattern 9-B1.Great Looks and Hot Trends are subject to the laws of the states in which they are located and do business.Many states

• A)prohibit false and deceptive e-mailing practices.
• B)require the use of spam by business entities.
• C)ban the use of spam altogether.
• D)preempt the application of federal law to commercial e-mail.

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Definitions:

Gross Income

The complete earnings from all origins before deductions or taxes are subtracted.

Personal/Rental Property

Assets owned by an individual that can either be used for personal purposes or rented out to generate income.

Net Loss

The result when a company's total expenses exceed its total revenues, indicating a negative profit for the accounting period.

Gross Rental Income

The total income received from renting out a property before any expenses are deducted.