In a Grantor-Retained Annuity Trust

question 42

Multiple Choice

In a grantor-retained annuity trust:

• A)there is an attempt to minimize taxes on a family by creating two classes of stock-preferred stock,whose value is locked in,and common stock,whose value reflects the market value of the business.
• B)a business owner can pass on up to $10,000 annually,which is exempt from federal gift taxes.
• C)the grantor retains the voting power and interest income from the stock in the trust for up to ten years.
• D)the surviving owner or heir of a family business has the right to purchase the stock of the deceased owner at a price established by a predetermined formula.

Recognize the significance of determinant attributes in consumer choice.

Distinguish between types of needs (functional, psychological) and their role in consumer behavior.

Explain the role of external influences (social, reference groups) on consumer attitudes and behaviors.

Understand the concept of Maslow's hierarchy of needs and its relevance to marketing.

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Definitions:

Diversification

A strategy of increasing business opportunities through new markets or products, aiming to reduce risks associated with over-reliance on a single product or market.

Product Development

The process of creating or improving a product or service, from initial idea through marketing, with the goal of satisfying customer needs.

Market Development

A strategy aimed at expanding the customer base by exploring new markets for existing products.

Product Penetration

Product Penetration is the extent to which a product is recognized and bought by customers in a particular market.