Consider the two variables service quality and customer satisfaction. Service quality is independent variable and customer satisfaction is dependent variable. Perform regression analysis using SPSS and explain the results. PLEASE USE SPSS ONLY AND PASTE THE OUTPUT OF SPSS. DO NOT USE EXCEL OR ANY OTHER SOFTWARE. SPSS ONLY PLEASE. SERVICE QUALITY CUSTOMER SATISFACTION

Hong Kong Taxation

ABC Co. (the Company) is incorporated and carrying on a retailing business through various retail in the US and does not maintain any management or control in Hong Kong. To be in line with the group’s long-term strategy, the Company is considering expanding into the Hong Kong market. There are two expansion proposals:

Proposal 1: To set up a subsidiary in Hong Kong, which will buy the goods from the Company and sell them in Hong Kong via retail outlets. All transactions are conducted at arm’s length. Proposal 2: To set up a branch in Hong Kong (HK Branch) to liaise directly with the potential customers in Hong Kong. HK Branch will be responsible to negotiate with customers on the terms of purchase based on a set of prescribed policy from the Company. Customers’ orders will be accepted and signed by the HK Branch, following which goods will be shipped directly from the US to the buyers in Hong Kong. The Branch will remain as a cost center without making any profits.

Required:

(a) Based on the Inland Revenue Ordinance and Rules, discuss the circumstances in which a non-resident company can be assessable to profits tax in Hong Kong.

(b) For each of the two proposals described, discuss the Hong Kong profits tax implications for ABC Co., including whether ABC Co. would be considered as carrying on business in Hong Kong, and if so, how assessable profits could be determined. (Note: Transfer pricing issue is not required to be discussed.)

CC Inc. (the Company) is incorporated and carrying on a retailing business through various retail in the US and does not maintain any management or control in Hong Kong. To be in line with the group’s long-term strategy, the Company is considering expanding into the Hong Kong market. There are two expansion proposals:

Proposal 1: To set up a subsidiary in Hong Kong, which will buy the goods from the Company and sell them in Hong Kong via retail outlets. All transactions are conducted at arm’s length.

Proposal 2: To set up a branch in Hong Kong (HK Branch) to liaise directly with the potential customers in Hong Kong. HK Branch will be responsible to negotiate with customers on the terms of purchase based on a set of prescribed policy from the Company. Customers’ orders will be accepted and signed by the HK Branch, following which goods will be shipped directly from the US to the buyers in Hong Kong. The Branch will remain as a cost center without making any profits.

Required:

(a) Based on the Inland Revenue Ordinance and Rules, discuss the circumstances in which a non-resident company can be assessable to profits tax in Hong Kong.

(b) For each of the two proposals described, discuss the Hong Kong profits tax implications for CC Inc., including whether CC Inc. would be considered as carrying on business in Hong Kong, and if so, how assessable profits could be determined. (Note: Transfer pricing issue is not required to be discussed.)

(Total for Question 4: 14 marks)

A telephone sales force can model its contact with customers as a Markov chain. The six states of the chain are as follows:
State 1 Sale completed during most recent call
State 2 Sale lost during most recent call
State 3 New customer with no history
State 4 During most recent call, customer’s interest level low State 5 During most recent call, customer’s interest level medium State 6 During most recent call, customer’s interest level high
Based on past phone calls, the following transition matrix has been estimated:
1100000 20 1 0 0 0 0 3 0.10 0.30 0 0.25 0.20 0.15
P  4 0.05 0.45 0 0.20 0.20 0.10
5 0.15 0.10 0 0.15 0.25 0.35
6 0.20 0.05 0 0.15 0.30 0.30 
a) For a new customer, determine the average number of calls made before the customer buys the product or the sale is lost.
b) What fraction of new customers will buy the product?
c) What fraction of customers currently having a high degree of interest will buy the
product?
d) Suppose a call costs 20 TL and a sale earns 200 TL in revenue. Determine the “value”
of each type of customer.

1. If rice is an inferior, then:

1. A decrease in income causes increase in quantity demanded, shifts D curve to the right
2. A decrease in income causes increase in quantity demanded, shifts S curve to the right
3. A decrease in income causes increase in quantity demanded, shifts D curve to the left
4. A decrease in income causes increase in quantity demanded, shifts S curve to the left

2. Suppose a producer is able to separate customers into two groups, one having an inelastic demand and the other having an elastic demand. If the producer’s objective is to increase total revenue, he should:

1. Decrease the price charged to customer with the elastic demand and increase the price charged to customer with the inelastic demand
2. Increase the price for both groups of customers
3. Increase the price charged to customer with the elastic demand and decrease the price charged to customer with the inelastic demand
4. decrease the price for both groups of customers

3. Which of the following is likely to have the most price inelastic demand?

1. MP3 players
2. Laptop computers
3. Designer jeans
4. School fees for students

4. If chicken is a normal good, then:

1. An increase in income causes increase in quantity demanded, shifts D curve to the left
2. An increase in income causes increase in quantity demanded, shifts S curve to the left
3. An increase in income causes increase in quantity demanded, shifts D curve to the right
4. An increase in income causes increase in quantity demanded, shifts S curve to the right

Mike Greenberg opened Bridgeport Window Washing Inc. on July 1, 2022. During July, the following transactions were completed.

The chart of accounts for Bridgeport Window Washing contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, and Salaries and Wages Expense.

Journalize the July Transactions

CC Inc. (the Company) is incorporated and carrying on a retailing business through various retailers in the US and does not maintain any management or control in Hong Kong. To be in line with the group’s long-term strategy, the Company is considering expanding into the Hong Kong market. There are two expansion proposals: Proposal 1: To set up a subsidiary in Hong Kong, which will buy the goods from the Company and sell them in Hong Kong via retail outlets. All transactions are conducted at arm’s length. Proposal 2: To set up a branch in Hong Kong (HK Branch) to liaise directly with the potential customers in Hong Kong. HK Branch will be responsible to negotiate with customers on the terms of purchase based on a set of prescribed policy from the Company. Customers’ orders will be accepted and signed by the HK Branch, following which goods will be shipped directly from the US to the buyers in Hong Kong. The Branch will remain as a cost centre without making any profits.

Required: (a) Based on the Inland Revenue Ordinance and Rules, discuss the circumstances in which a non-resident company can be assessable to profits tax in Hong Kong.

(b) For each of the two proposals described, discuss the Hong Kong profits tax implications for CC Inc., including whether CC Inc. would be considered as carrying on business in Hong Kong, and if so, how assessable profits could be determined. (Note: Transfer pricing issue is not required to be discussed.)

Ricky’s Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash $ 6,900 Accounts Payable $ 8,500 Accounts Receivable 25,250 Deferred Revenue (deposits) 5,200 Supplies 1,350 Notes Payable (long-term) 43,500 Equipment 15,300 Common Stock 15,000 Land 6,900 Retained Earnings 6,200 Building 22,700 Following are the January transactions: a.Received a $865 deposit from a customer who wanted her piano rebuilt in February. b.Rented a part of the building to a bicycle repair shop; $345 rent received for January. c.Delivered five rebuilt pianos to customers who paid $11,925 in cash. d.Delivered two rebuilt pianos to customers for $6,800 charged on account. e.Received $4,800 from customers as payment on their accounts. f.Received an electric and gas utility bill for $440 for January services to be paid in February. g.Ordered $995 in supplies. h.Paid $1,600 on account in January. i.Paid $10,300 in wages to employees in January for work done this month. j.Received and paid cash for the supplies in (g). How to do a income statement for the month ended and at January 31. How to do a statement of retained earnings for the month ended and at January 31. How to do a classified balance sheet for the month ended and at January 31.