You are the vice president of marketing at a large corporation. One of your best-selling products is brand XYZ. It is a toothpaste that provides excellent protection against cavities. You also sell XYW which is the same toothpaste but adjusted to focus more on providing fresh breath. The head of your promotion department comes to your office and tells you that based on the very reliable study, if the company were to increase the annual social media promotion budget for XYZ by $500,000, the sales of XYZ would go up by $2,000,000. Assuming that these estimates are perfectly accurate, what additional information would you like to have before deciding to approve the increase in the social media promotion for XYZ by $500,000? List all the information that you think is necessary and explain why it is relevant to the decision.

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting

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