The advantages of NPV are all of the following except it can be used as a rough screening device to eliminate those projects whose returns do not materialize until later years.
NPV allows the comparison of benefits and costs in a logical manner through the use of time value of money principles, it provides the amount by which positive NPV projects will increase the value of the firm, and it recognizes the timing of the benefits resulting from the project. NPV stands for Net Present Value is a term used in finance whose main objective is to capture the total value invested in any project.
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organizations use a(n) to categorize a security threat, determine its cause, preserve any evidence, and get systems back online so they can resume business.
Organizational staff use the incidence response plan to classify threats, figure out what caused them, keep evidence safe, and get systems back online.
What are incident command's five C's?An emergency response is broken down by ICS into five manageable tasks that are necessary for emergency response operations: Finance and administration, operations, logistics, planning, and command.ICS has the same fundamental structure regardless of the kind of emergency.
What identifies and rates an organization's vulnerabilities?In a table, the vulnerabilities are listed in the risk matrix, and managers rate the level of risk they pose to operations, confidentiality, the company's reputation, finances, and system availability.
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n a perpetual inventory system, a return of defective merchandise by a purchaser is recorded by crediting a. purchases b. purchase returns and allowances c. purchase discounts d. inventory
A return of faulty items by a purchaser is documented in a perpetual inventory system by crediting inventory. Thus, the right option is (d.) inventory.
What is perpetual inventory?In business and accounting, a perpetual inventory system or continuous inventory system refers to inventory systems in which inventory amount and availability information is updated on a continuous/real-time basis as part of doing business. In most cases, this is achieved by linking the inventory system with order entry and, in the case of retail, the point of sale system. In this situation, book inventory would be identical to, or nearly identical to, real inventory.
Perpetual inventory systems are nonetheless subject to mistakes owing to overstatements or understatements caused by theft, breakage, scanning errors, or untracked inventory movements, resulting in chronic replenishment problems.
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selling the same goods to different targeted groups at different prices is called: group of answer choices cost customization. cost personalization. price discrimination. cost optimization. price gouging.
Selling identical items to one-of-a-kind focused agencies at one-of-a-kind costs is called price discrimination.
What's price discrimination?Price discrimination is a promoting approach that costs clients one-of-a-kind costs for identical products or services primarily based totally on what the vendor thinks they are able to get the purchaser to agree to. In natural fee discrimination, the vendor costs every purchaser the most fee they will pay.
In greater, not unusual place varieties of fee discrimination, the vendor locations clients in agencies primarily based totally on positive attributes and costs every organization a one-of-a-kind fee.
Price discrimination is practiced primarily based totally on the vendor's notion that clients in positive agencies may be requested to pay greater or much less primarily based totally on positive demographics or on how they fee the products or services in question.
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during the month, tnt construction paid $300 to settle warranty claims. tnt uses an estimated warranty account. the journal entry to record the claims payment would have been:
The journal entry to record the payment would have been debit Estimated warranty payable, $300; credit Cash, $300.
A business may have a warranty policy, under which it guarantees to customers that, after the sale, it would repair or replace specific kinds of product damage. If the company has a reasonable estimate of the number of warranty claims that are likely to be made under the policy, it should set aside an expense that matches the cost of these anticipated claims.
The relevant product sales must be documented during the same reporting period as the accrual. By doing this, the financial records accurately reflect all costs associated with product sales and represent the full profitability of those sales.
The expense for warranties for sales made in the current period and in prior periods whose warranties have since been extended into the current period will be impacted if management modifies the warranty's coverage duration.
If the cost of warranty claims were only recognized when the company actually processed customer claims, the cost might not be realized for several months after the corresponding sales. This technique would result in abnormally large initial profits for the duration of the warranty period, followed by poor profits in subsequent months.
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the combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a . a. total product offer b. product differentiation c. product mix d. product package
The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a total product offer.
Project marketing managers launch products in the market through a process known as product marketing. Product marketing's primary goal is to increase market demand for the product.
The entire product offer is the combination of all the factors that consumers consider when choosing between items; these factors include the packaging, price, reputation, and so on.
It's sometimes referred to as the value bundle.
Everything consumers consider before making a purchasing decision makes up the overall product offer. It encompasses things like cost, brand name, and user pleasure.
Keeping all other inputs constant, this association between the variable input and output is known as the total product (TP) of the variable input.
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you deposit $1000 at the beginning of each year into an account earning 5% interest compounded annually. how much will you have in the account in 35 years?
In 35 years you will have $55,160 in your account which has 5% compound interest.
What is Compound Interest?The interest you earn on interest is known as compound interest. Simple math may be used to demonstrate this: if you have $100 and it generates 5% interest annually, you will have $105 at the end of the first year. You will wind up with $110.25 at the conclusion of the second year. Compound interest, also known as interest on principal and interest, is the practise of adding interest to the principal amount of a loan or deposit. Because interest is calculated on both the original principal and the accumulated interest over time, compound interest causes your money to grow more quickly. As the initial investments and the income received from those assets rise simultaneously, compounding can produce a snowball effect.
Hence, In 35 years you will have $55,160 in your account which has 5% compound interest.
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which of the following would not be considered an investment asset? select one. question 4 options: a. cash value in life insurance b. money market account c. brokerage account d. 401(k) plan
Cash value in life insurance would not be considered an investment asset.
A life insurance policy is a contract between a policyholder and an insurance company or insurance company, in which the insurance company promises to pay an amount to a specified beneficiary upon the death of the insured. Depending on the contract, other events B. Terminal or critical illness trigger payment.
Life insurance is a contract between a policyholder and an insurance company in which the insurer promises to pay an amount for premiums upon the death of the insured or after a specified period of time. can be defined.
Term life insurance is a life insurance product that provides financial protection to policyholders for a specified period of time. If the insured dies during the policy period, the company will pay the death benefit to the beneficiary.
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depreciation on the equipment for the month of january is calculated using the straight-line method. at the time the equipment was purchased, the company estimated a service life of three years and a residual value of $10,400. prepare the adjusting entry for depreciation.
Depreciation on the equipment for the month of january is calculated using the straight-line method is 11160.
Equipment depreciation is calculated as [cost-residual value]/[useful life].
[16000-3400]/2
= 6300
Depreciation for a month is equal to 6300*1/12, or 525.
Amounts Due at End = 46400 Beginning + 136000 - 125500-4900 + 134000 = 18600
Estimated uncollectible balance at the end = [(186000-12000)*30%] + [(12000*30%] .04]
= 3600+ 6960
= 10560
Unadjusted balance in the allowance account = 4300 – 4900 = – 600 debit
Unadjusted balance in the allowance account + anticipated uncollectible account at end = bad debt expense
= 10560 - (-600) (-600)
= 10560+600
= 11160
Depreciation is the gradual lowering of a fixed asset's recorded cost over time, until the asset's value is zero or insignificant, according to accounting terminology.
Buildings, furniture, office supplies, machinery, etc. are examples of fixed assets. The one exception, as land value increases over time, is that it cannot be depreciated.
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which organizational culture is best suited for an individual who is high in conscientiousness? market clan hierarchy adhocracy
Hierarchy is the organizational culture which is best suited for an individual who is high in conscientiousness.
What is Hierarchical Organizational Structure?
A direct chain of command running from the top of the organization to the bottom is present in a hierarchical organizational structure. All important decisions are made by senior management, which is subsequently communicated to lower levels of management. If a person at the bottom of the organizational pyramid needs to make a decision, they must first convey their request up the chain of command for permission before receiving a response with their choice. When there are few products that are sold in large quantities, a hierarchical structure works effectively so that strict control over the design, quality, production, and distribution of goods can be maintained.
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the average income for the top 1 percent of wealthiest americans is 81 times than the average income of the bottom 50 percent. true false
The answer is true. The average income per person in a certain area (city, region, country, etc.) for a given year is known as per capita annual income or average income.
The amount is determined by dividing the region's overall average income by its whole population. A city might have a per capita income of $50,000, for instance. This indicates that $50,000 per person is the average annual income in that city. In the third quarter of 2022, full-time workers' median weekly pay was $1,070. Women's median weekly earnings were $971, or 83.4% of men's median weekly earnings of $1,164.
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the market structure where there are so few sellers that each one needs to watch what the others are doing is referred to as
The market structure where there are so few sellers that each one needs to watch what the others are doing is referred to as Oligopoly market.
Market structure is the way industries are classified and differentiated based on their competition for products and services.
There are 4 types of Market Structure:
Monopolistic competitionOligopolyMonopolyPerfect competitionMonopolistic Competition is a market where there are many producers offering similar but not identical products. In this market, decision of one producer will not directly affecting other producers. Eventhough the products offered in this market is similar, but they are not perfect subtitution for another.
Oligopoly is a market where many small producers are offering similar products to the market. Those small producers are controlling he majority of market share together. In this market, a decision made by one producer could affecting other producers.
Monopoly is an economy in which a producer is dominating the market. This producer is owning the whole market share and controlling the prices. This type of market is usually happened for critical products such as gasolilne and electrics.
Perfect competition is a market structure with many producers and many buyers in it. All of producers have similar small market share and they don't have any power to control the prices. The price in this market is defined by the equilibrium point of the supply and demand curve.
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in a contractual vertical marketing system, the channel captain often has influence over other channel members due to multiple choice longevity in the industry. social interactions with the community at large. economic power. geographic proximity to the manufacturing plant. a legitimate right to direct them.
In a contractual vertical marketing system, the channel captain often has influence over other channel members due to a legitimate right to direct them.
What is contractual vertical marketing system?A type of vertical marketing system in which unaffiliated businesses at various levels of distribution are linked by contract in order to create economies of scale and increase the impact of sales.Working with a franchise is an instance of a contractual vertical marketing structure. A license must be bought in order to open a franchise location. However, the owner is required to adhere to all the requirements, norms, and procedures of a franchiser.Corporate, contractual, and administrative are the three types of vertical marketing systems.A retailer cooperative, in which a number of merchants purchase from a wholesaler they both own, is one sort of contractual VMS. Franchise organizations, in which a manufacturer grants a distributor a license to distribute its goods, are another sort of contractual VMS.To learn more about contractual vertical marketing system refer to:
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the document that is generally mailed monthly and contains the details of all sales, cash receipts, and credit memorandum transactions processed through a customer's account is called a(n) custome
The document is called Customer Statement.
What is a bank Statement?A bank statement is an official summary of all financial transactions made for each bank account that a person or business has with a financial institution within a specific time period. These statements, which are created by the financial institution, are numbered and reflect the time period they cover. They may also include other information pertinent to the type of account, such as the amount due by a specific date. The day following the conclusion of the previous statement period is typically the start date of the new statement period.The consumer frequently uses bank statements to track cash flow, look for potential fraud, and execute bank reconciliations.In the past, they have been printed on one or more sheets of paper and sent to the account holder by mail or maintained at the local branch of the financial institution for pick-up. In order to speed up the reconciliation process, there has been a move in recent years toward paperless electronic statements. In addition, many financial institutions now provide direct downloads of financial information into the accounting software of account holders. Important bank statements must typically be kept for a period of time determined by the appropriate tax authorities for audit and tax purposes.
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A Customer Statement is,
A customer receives this document by mail every month, on average. It includes information on all sales, cash receipts, and credit memo transactions that were made during the specified time period using the customer's account.What is a bank Statement?A bank statement is an official summary of all financial transactions made for each bank account that a person or business has with a financial institution within a specific time period.These statements, which are created by the financial institution, are numbered and reflect the time period they cover.They may also include other information pertinent to the type of account, such as the amount due by a specific date.The day following the conclusion of the previous statement period is typically the start date of the new statement period.The consumer frequently uses bank statements to track cash flow, look for potential fraud, and execute bank reconciliations.In the past, they have been printed on one or more sheets of paper and sent to the account holder by mail or maintained at the local branch of the financial institution for pick-up.In order to speed up the reconciliation process, there has been a move in recent years toward paperless electronic statements.In addition, many financial institutions now provide direct downloads of financial information into the accounting software of account holders.Important bank statements must typically be kept for a period of time determined by the appropriate tax authorities for audit and tax purposes.To learn more about bank statements, refer to
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the risk coming from inside the organization compared to the risk coming from outside the organization. if the article notes that this relative risk is changing, how is it changing an to what is the change attributed?
Researchers tracking amino acid changes in a large sequence database of SARS-CoV-2's spike protein discovered a D614G (glycine for aspartic acid) substitution that became the predominant polymorphism globally over time.
In animal and in vitro tests, viruses with the G614 polymorphism replicate better, bind to ACE-2 more tightly, and have higher levels of replication and transmissibility when compared to viruses with the D614 polymorphism [12,13]. [14] There is no evidence that the G614 mutation affects the binding of anti-spike antibodies or increases hospitalization risk [11]. There are now many SARS-CoV-2 lineages in circulation that carry it,
Question:using a web search engine, find an article from a reputable source, published within the past six months, that reports on the risk coming from inside the organization compared to the risk coming from outside the organization. if the article notes that this relative risk is changing, how is it changing and to what is the change attributed?
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microloans are small short-term loans given to people living in poverty that enables them to engage in entrepreneurship. True or False
The statement that microloans are small short - term loans given to people living in poverty to allow them to be entrepreneurial is True.
What are microloans?Microloans are a type of short - term financing where smaller amounts are loaned out to people who would otherwise be unable to get these loans from mainstream financial institutions.
The reason for this is that these people are often living in poverty which means that they will not be able to pay back the loans easily. The microloans help such people to engage in entrepreneurship when other financial institutions won't help.
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a shift of the demand curve for thin-crust pizza would be caused by a change in: question 3 options: a) buyers' incomes. be) the price of thick-crust pizza. c) all answers are correct. d) the popularity of thin-crust pizza.
A shift of the demand curve for thin-crust pizza would be caused by a change in the popularity of thin-crust pizza. A demand curve shift refers to fundamental shifts in the supply-demand balance that affect the quantity sought at the same price.
For example, you might be willing to pay $1 price for ten apples. If the grocery store lowers the price to $0.75, the demand curve shift means you might buy 15 apples rather than 10. Changes in tastes, population, income, prices of substitute or complement items, and expectations about future circumstances and prices are all factors that can affect the demand curve for goods and services.
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say you are buying a bicycle. you do not plan to use the bicycle for more than a few years before buying a new one, but will rely on it in the meantime. you know that your bicicyles tend to need repairs periodically, but you tend to take good care of them overall. the bicycle is relatively cheap, so you do not want to invest too much money into it. what kind of warranty would be a good one to purchase and why?
You have to buy a bicycle with sufficient quality for your activities, then choose a bicycle with a relatively cheap price so that your money can be invested.
Investment is the activity of placing capital in the form of money or other valuable assets into an object, institution, or party with the hope that the investor or investor will benefit after a certain period of time. Because of the hope of getting profits in the future, this investment is also known as investment. The term investment itself comes from the Italian word, investire which means to use or use. Generally, funds or assets invested by an investor will be developed by the agency or party that manages it. The profits from the development will be distributed to investors as a return in accordance with the provisions between the two parties.
Economically, in investment, investors will buy something that will not be used now. Something that is purchased is stored as property which after a certain period of time can change in value. Investing does not always lead to profit. There is also a risk of loss in investing. Therefore, it is very important to understand the types of investments and their risks.
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a process layout is used when all products undergo the same operations in the same sequence. true false
True, a process layout is used when all products undergo the same operations in the same sequence.
an arrangement or plan, particularly the conceptual organization of components or regions. A factory's layout or the design of a printed circuit. anything's arrangement or layout, particularly a newspaper's, book's, or advertisement's layout or composition. the way it was set out. something that is produced with the intention of being sold, typically through an industrial process, or, less frequently, something that is grown or obtained through farming: They manufacture a variety of skin care goods.
Anything you sell to fulfill a customer's need or desire is a product. They could be real or virtual. A physical product can be either durable (such as cars, furniture, or computers) or nondurable.
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the ability to draw on internal capital is a useful economy of scope for diversified firms. however there is a potential for the firm to experience the phenomenon known as .
Costs are spread across a variety of products, a business that reaps the benefits of economies of scope has lower average costs. Because costs rise with production, a business that reaps the benefits of economies of scale has lower average costs.
What is effective allocation of internal capital markets?An effective internal capital market allocates funds to maximize shareholder wealth when firms have limited funds for investment because external funds are more expensive than internal funds.
What is an illustration of an economy of scope?A dine-in restaurant with a bakery counter where customers can buy pastries or pies to take home is a typical example of economies of scope.
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a product's conformance to specifications multiple choice is in response to customers' needs. determines sales price to the customer. is defined as continuity of service to the customer. is independent of the quality of design.
A product's conformance to specifications is independent of the quality of design. Product and process conformance refers to a product's, service's, or process's ability to meet its design criteria. Design specs are an interpretation of the customer's requirements.
Conformance refers to how well anything, such as a product, service, or system, matches a stated standard and may relate to: Conformance testing determines whether a product or system matches a predefined standard. Improves Customer Satisfaction If the company ensures that the quality of conformance of the products or services that reach the client is at least satisfactory, the customer's requests are more likely to be met.
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what are some of the main aspects of islamic finance that makes it difficult for banks based in the western world to offer financial services? g
Islamic banks face risks related to rate of return, noncompliance, equity investment, and displaced commercial activity are some of the main aspects of islamic finance that makes it difficult for banks based in the western world to offer financial services.
The lack of industry efforts to assist small traders and the poor, the issue of how to deal with inflation, late payments, the absence of sharia-compliant locations to park short-term funds for liquidity, the fact that non-Muslims own some companies, and the lack of hedging of currencies and rates are some other issues/complaints that have been made.
The creation of a suitable risk management environment is covered in Risk Management for Islamic Banks, along with a stage-based implementation strategy that includes risk identification, measurement, mitigation, monitoring, controlling, and reporting.
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janet saves $3,000 a year at an interest rate of 4.2 percent. what will her savings be worth at the end of 35 years?
Future cost is a value of an investment or asset on a specific date in the future.
To put it every other way, the future cost is the quantity of money a given funding will be really worth after a certain period, assuming a unique price of return (interest rate).
How do I calculate future value?You can calculate future fee with compound interest the usage of this formula: future fee = existing fee x (1 + hobby rate)n. To calculate future value with simple interest, use this formula: future fee = present fee x [1 + (interest fee x time)].
How a whole lot will I have if I make investments 100 a month for 30 years?Long-term investor: Let's say that you are investing $100 per month with retirement in mind. You graph to make investments $100 per month for 30 years and anticipate a 6% return. In this case, you would make a contribution $36,000 over your funding timeline.
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In the mid-90s, the u.s. government grew concerned that microsoft was a monopoly , exercising disproportionate control over the available choices and prices of computers.
What is a monopoly example?Monopoly is a company that sells its product exclusively and without any close substitutes is said to have a monopoly. An unchecked monopoly has the ability to set prices and has market power. Examples include Microsoft and Windows, De Beers and diamonds, and the natural gas provider in your community.Typically, when there is no economic competition, a monopoly scenario develops. A simple monopoly exists when there are no other companies producing the good or service that consumers need. A further prerequisite is that the good or service must be unique or irreplaceable in kind.To learn more about monopoly refer to:
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if a negative demand-side shock and a temporary negative supply-side shock occur simultaneously, what will be the short-run effects on price level and output?
If a negative demand-side shock and a temporary negative supply-side shock occur at the same time, the new level of output will be lower. The new price level is unknown.
Demand-side economics is the belief that high demand for goods and services is the most effective way to generate economic growth and full employment. According to demand-side economics, output is determined by effective demand. High consumer spending leads to corporate expansion, which leads to more job possibilities. Higher levels of employment have a multiplier effect, stimulating aggregate demand and resulting in higher economic growth.
Proponents of demand-side economics say that tax reductions for the wealthy provide little, if any, economic benefit because the majority of the extra money is not spent on goods or services but instead reinvested in an economy with low demand (which makes speculative bubbles likely).
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When asked about a recent failure during an interview, a good response would involve?.
When asked about a recent failure during an interview, a good response would involve not blaming others for the failure; accept responsibility.
What do you say if someone is rejected from an interview?You can use the following words and phrases: I'm sorry to hear that; I know you put a lot of effort into the application. "I realize that's upsetting, but if you want to message, I'm here." It's difficult to pass up a job you really wanted, but you're incredibly talented, so I'm sure there will be other possibilities for you in the future.
Therefore, Briefly and clearly describe what happened. Don't blame others for the failure; accept responsibility. Demonstrate what you took away from the event. Discuss how you've used the experience to improve your work and avert similar errors.
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in terms of labor supply, the income effect of a higher wage causes a(n): group of answer choices decrease in the quantity of labor supplied. increase in the quantity of labor supplied. reduction of leisure time to zero. decrease in leisure time.
in terms of labor supply, the income effect of a higher wage causes decreases in leisure time.
What is leisure time?Labor productivity is based on activity in the workplace and does not include vacation time in the calculation. In contrast, psychologists and sociologists argue that leisure plays an active role in the production process. The economist's definition of leisure is, at least implicitly, "non-working time." Usually, this concept has been of little interest in determining whether forms on the borderline of time are 'work' or 'leisure'.Using empirical data from 21 OECD countries, the study found that leisure time has a double impact on labor productivity in terms of per capita GDP per hour. Moreover, leisure time is non-linearly related to labor productivity (inverted U shape). When the free time reaches the optimal level (5,813 hours), free time has a compensatory effect on work and can have a positive impact on labor productivity, but when free time exceeds the optimal value, free time is It can have a substitution effect on jobs and negatively impact labor productivity.To know more about leisure time refer to:
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what is the primary problem in the northeast region? select an option from the choices below and click submit. the many repetitive complaints from the field suggest that you have store managers who just aren't up to the job. you must plan on hiring a stronger management team. the store managers are not receiving clear, consistent direction. communication with the store managers is too slow. they need quick responses to their questions.
X - too little time is spent communicating with store managers. Hey require prompt responses to their inquiries.
X - the numerous, recurrent complaints from the field suggest that your store managers are incapable of performing their duties. You must prepare to hire a more powerful management team.
How will the team be able to communicate its findings with your formal network?
You will receive the team's final report, which you will then share with your leads, who in turn will share it with each store manager to ensure that all questions are answered, and that communication is accurate.
When a rival across town abruptly shut down?
Janie's Gun Gallery saw a significant increase in patrons when a competitor across town abruptly closed. Janie motivated her staff to work harder to satisfy each customer's needs.
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austin and erin are willing to pay $10 and $9, respectively, for a ticket to a screening of a new movie. what is the total consumer surplus for both austin and erin if the market price of a ticket is $6?
The answer for the given question is austin and erin if the market price of a ticket is is $7.
Consumer surplus:
In terms of economics, the consumer surplus and producer surplus are added up to determine the ecosystem's overall surplus. The amount that customers are prepared to spend beyond the market price is known as the consumer surplus.
A financial estimation of the advantages that consumers gain through market competition is known as consumer surplus. When customers pay less for a good or service than they would be willing to, this is known as consumer surplus. It gauges the added value that consumers receive when they pay less for something they would have been willing to.
Consumer surplus occurs when consumers pay less for a commodity or service than they'd be willing to. Consumer surplus is based on the economic idea of marginal utility, which is the extra pleasure a consumer gets from buying one more unit of a good or service.
The overall consumer surplus as calculated is $7.
Given are the overall consumer surpluses:
= Consumer surplus for Austin + consumer surplus for Erin
= (Willingness to pay for Austin - market price) + (willingness to pay for Erin - market price)
= ($10−$6)+($9−$6)
= $4+$3
= $7
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what is the present worth of a $50,000 bond that has an interest of 20% per year payable quarterly? the bond matures in 5 years. the interest rate in the marketplace is 10% per year, compounded semiannually.
At maturity, a coupon bond pays both the principal and periodic interest payments at a fixed frequency. Discounted at the bond's required rate of return, the present value of the bond payments determines the coupon bond's market price.
In any case, the yield to maturity decreases with the bond's price.
The bond has a present value of $50,000.
The bond earns 2500 per quarter, or 50,000 times 20% divided by four. There will be a total of 20 quarterly coupon payments as a result of the bond's five-year maturity. We must determine the quarterly discount rate in order to determine the bond's present value.
By dividing the sum of the security's annual coupon payments by the bond's par value, the bond's coupon rate can be determined. A bond with a $1,000 face value and a $25 semiannual coupon, for instance, has a coupon rate of 5%.
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what causes double taxation? group of answer choices a taxpayer being subject to tax laws in multiple jurisdictions profits increasing excessively from year to year penalties imposed by a taxing authority for non-payment of taxes difference tax rates across countries
A tax principle known as "double taxation" refers to paying income taxes twice on the same source of income. When income is subject to both corporate and individual taxes, it may happen.
When the same income is taxed in two different nations for the same investment or transaction, this is known as double taxation. Double taxation occurs when the shareholders and the corporation both pay taxes on the same income. The corporation pays taxes on its profits. Paid-in capital and retained earnings make up stockholders' equity. Double taxation occurs when the same income is taxed in two different countries. When a foreign company's income from a foreign source is taxed by the government of one country while also being taxed by the government of the company's home country, this occurs.
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