The 7 steps of the market planning process. 1. Situation analysis
2. Review of corporate objectives/mission
3. Set its marketing objectives
4. Devise an appropriate marketing strategy
[Segmentation: by age/social class or income
Targeting: target the segments with appropriate marketing mix
Positioning: differentiation vs cost leadership for each segment
Marketing mix: Product, price, place, promotion]
5. Plan the marketing mix
The following is a list of payments which an organisation may incur during a year: (i) capital withdrawn from the business; (ii) interest paid; (iii) legal expenses; (iv) payments for domestic expenses of the directors; (v) advertising. Which two of the above items of expenditure will normally be disallowed for corporate income tax purposes?
A. (i) and (iii) B. (i) and (iv) C. (ii) and (iv) D. (iii) and (v)
Question No 12: Accounting depreciation is replaced by tax depreciation?
A: To reduce the amount of depreciation allowed for tax B: To increase the amount of depreciation allowed for tax C: To ensure that standard rates of depreciation are used by all organisations for tax purposes D: So that the government can more easily manipulate the amount of tax organisations pay Answer: C
Question No 11: An imputation system of corporate income tax means?
A: All the underlying corporate income tax on the dividend distribution is passed as a
credit to the shareholders B: The organisation pays corporate income tax on its profi ts and the shareholder pays
income tax on the dividend received C: Withholding tax paid on dividends is passed as a credit to shareholders D: A percentage of the underlying tax is passed as a credit to shareholders