Imagine that you are one of the top-level managers of Rent the Runway. You and the rest of the management team are brainstorming other entrepreneurial opportunities to expand the business’s markets. You believe there is a need for other types of clothing and accessories rentals, just as there has been for evening gown rentals. Given Rent the Runway’s core competencies, which of the following is the best area in which to expand? a. Rent the Runway could add high-end kids’ clothing to its rental line.
b. Rent the Runway could branch out into rental of household items.
c. Rent the Runway could add men’s clothing to its rental line.

Melissa is a very generous single woman. before this year, she had given over $11,400,000 in taxable gifts over the years and has completely exhausted her applicable credit amount. in the current year, melissa gave her daughter riley $100,000 and promptly filed her gift tax return. melissa did not make any other gifts this year. how much gift tax must riley pay the irs because of this transaction?

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?

You are considering purchasing a company — assets, liabilities, warts, and all. you are aware that sometimes liabilities do not always show up on the balance sheet. discuss five examples of liabilities that may not be explicitly recognized on the balance sheet, making sure to explain why they are liabilities.