Profits income from which of the following sources of, Financial Management

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Profits income from which of the following sources of

1. Profits (income) from which of the following sources of income would not be taxable?

a. Crowdfunding. b. Bookmarking. c. Lottery schemes. d. Illegal business.

2. A corporation is allowed to deduct up to $1,500 of political contributions when calculating business income for tax purposes.

True False

3. According to the textbook’s report of Graham and Harvey’s 2001 survey of CFOs, which of the following factors did the most CFOs rate as important or very important in setting their firm’s capital structure?

a. tax savings due to tax deductibility of interest b. financial distress costs c. credit ratings d. interest rate levels e. financial flexibility.

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