By Efficiently Managing External Relations,small Businesses Typically Aim at Creating

question 95

Multiple Choice

By efficiently managing external relations,small businesses typically aim at creating _____.

• A) economies of scale
• B) social capital
• C) opportunity costs
• D) skills inventory

Recognize the role of tax shields in lease versus buy decisions, specifically in relation to depreciation and Capital Cost Allowance (CCA).

Evaluate the impact of asset obsolescence, temporary need, and restrictive covenants on the decision to lease or buy.

Understand how leasing transfers uncertainty about asset value and future market conditions from the lessee to the lessor.

Determine the after-tax costs or savings associated with leasing equipment, including lease payments and tax impacts.

---

Definitions:

Two Months' Notice

A formal notification given two months in advance, commonly referring to employment or tenancy agreements.

Solicit Customers

The act of actively seeking out individuals or entities to purchase goods or services.

Copy Customer Lists

Refers to the act of duplicating lists of customers' information, often considered sensitive, from one business for use in another, potentially breaching confidentiality agreements.

Constructive Dismissal

A situation in employment law where an employer makes significant changes to an employee's job conditions that effectively force the employee to resign.