Connor Schmidt is ready to launch his own business, a carpet cleaning service. He has heard that certain states offer tax incentives to businesses that locate in depressed economic areas. Schmidt decides that it is worth it to the future of his business to relocate to one of these areas, the industrial city of Elizabeth in the state of New Jersey. Schmidt's business partner questions his decision to move to Elizabeth just to take advantage of these tax incentives, but Schmidt is convinced his strategy will pay off. "It's a win-win situation," he said. "The State of New Jersey wants to stimulate economic activity, and we want to get a little help with our finances." Connor Schmidt is looking forward to taking advantage of the benefits of a(n)
A) trade association.
B) incubator.
C) angel investment.
D) urban enterprise zone.
E) tax loophole.

Question

Quizplus · Accepted Answer

Connor Schmidt is moving his business to a depressed economic area to take advantage of state-offered tax incentives, which is characteristic of an urban enterprise zone. These zones are designed to stimulate economic activity in underdeveloped areas by offering benefits such as tax advantages to businesses that locate there.

Connor Schmidt Is Ready to Launch His Own Business, a Carpet