E-Z-Go, a Producer of Golf Carts, Promotes Its Carts to Other

question 122

Multiple Choice

E-Z-Go, a producer of golf carts, promotes its carts to other users by advertising them as an easy and quiet way for workers to get around malls, airports, and big factories. E-Z-Go is trying to increase its sales through

• A) market penetration.
• B) differentiation.
• C) product development.
• D) market development.
• E) diversification.

---

Definitions:

Deductibility

Deductibility refers to the eligibility of an expense to be subtracted from gross income to reduce taxable income, based on IRS guidelines.

Schedule C

A form used by sole proprietors to report income and expenses from a business or profession to the IRS.

Schedule E

A form used with the Form 1040 for reporting income from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests.

Tax Purposes

Criteria or activities specifically considered or accounted for in the calculation or management of taxes.