General Corporation Is Taxable in a Number of States

question 5

Multiple Choice

General Corporation is taxable in a number of states. This year, General made a $100,000 sale from its A headquarters to a customer in B. This activity is not sufficient for General to create nexus with B. State B applies a throwback rule, but State A does not. In which state(s) will the sale be included in the sales factor numerator?

• A) $0 in both A and B.
• B) $100,000 in A.
• C) $100,000 in B.
• D) In both A and B, according to the apportionment formulas of each.

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Definitions:

Global Segments

Refers to the division of the global market into distinct groups of customers or regions with similar characteristics or needs.

Positioning

The process of establishing a distinctive place for a brand or product in the market and in the customers' minds.

Marketing Mix

The set of tactical marketing tools—Product, Price, Place, Promotion—that a company uses to produce the response it wants in the target market.

Product Attributes

The characteristics that define a product and contribute to its perceived value among consumers, such as quality, features, design, and brand reputation.