B. The office manager for several lawyers signs the firm up with an Internet service provider

6 May 2022

D. operational concepts

Question 5 Which of the following is the best example of a new task purchase? A. A dentist who has been in practice for 10 years buys a replacement dental chair just like the old one. C. A Dallas-based hotel chain with 120 hotels and resorts spends $1.6 million to protect itself from computer viruses. D. A department store upgrades its security system by installing a second video camera at the employees’ entrance to the store.

Question 6 Which of the following statements correctly describes the difference between how organizational buyers make purchases and how final consumers make their purchases? B. Organizational buyers are more geographically dispersed than final consumers. C. The buyer-seller relationships have fewer permutations in the consumer market than in business-to-business marketing. D. The distribution channel for final consumers is shorter than for organizational buyers.

A. There is a greater emphasis on personal selling to organizational buyers than to final consumers

Question 7 A privately owned, small company with technology or production orientation will tend towards __________ decision making. More

The Commodity Credit Corporation (CCC) is the USDA’s financing institution with programs administered by the Farm Service Agency (FSA)

6 May 2022

  Among other things, the CCC makes commodity and farm storage facility loans to farmers where the farmers’ crops are pledged as collateral. These loans are part of the price and income support system of the federal farm programs. 

A CCC loan involves a farmer pledging bushels of grain as collateral for a loan

How is the loan reported for tax purposes?  What happens when the loan is paid back?  What are the tax reporting rules that apply?  These questions are the focus of today’s post.

  The loan allows the farmer to create cashflow without the need to sell the grain.  If prices rise, the grain can be sold, and the loan (and interest) paid off with the farmer keeping the balance. 

Farmers using the loan method (and their tax preparers) should recognize that the loan method can create a high income with no cash flow in the year the grain is sold

What if prices don’t rise?  This points out a key aspect of the CCC loan program.  When a farmer seals grain (places it in storage and pledges it as collateral to secure a CCC loan), the farmer retains the ability to forfeit the grain in the future if the loan value exceeds commodity prices.  Because most CCC loans are nonrecourse, upon maturity, if the loan plus interest is not paid, the forfeiting of the commodity to the CCC as full payment for the loan effectively establishes a minimum price.  The farmer can forfeit the grain if prices drop below the loan value, and still retain the ability to market the grain later if the commodity price increases. More