Final answer:
The factors used to determine when a business is unitary include functional integration, economies of scale, nexus with the taxing state, and centralization of management between companies.
Step-by-step explanation:
The factors used to determine when a business is unitary include:
- Functional integration: This refers to the extent to which the operations and activities of different parts of the business are interrelated and integrated.
- Economies of scale: These occur when the size of the business allows for cost advantages and efficiencies, such as bulk purchasing or centralized production.
- All the separate businesses have nexus with the taxing state: Nexus refers to the connection or presence of a business in a particular state, which may be determined by factors such as physical presence, sales, or employees.
- Centralization of management between companies: This refers to the extent to which the management and decision-making functions of the separate businesses are centralized or coordinated.