What characterizes a corporation likely based in a state regarding its apportionment formula?

The correct choice regarding the characteristics of a corporation likely based in a state, in the context of apportionment formula, centers around the reliance on both payroll and property factors.

In many instances, a corporation's physical presence in a state—indicated by the location of its payroll and property—plays a significant role in determining its tax obligations. When a company's operations are heavily concentrated within a specific state, the payroll and property factors in the apportionment formula typically reflect that concentration. This means that the corporation's employment expenses and physical assets are substantial in relation to its total operations, which results in higher payroll and property factors compared to other factors like sales.

Sales factors tend to fluctuate based on where the sales occur rather than where the corporation is physically present, so if a corporation has a high payroll and property presence in a state, it's indicative of a strong local operation that generates payroll expenses and holds property in that location.

This context helps clarify the reasoning behind the correct answer, illustrating how a corporation's local ties can significantly influence its apportionment formula. The other choices deal with arrangements that may not accurately reflect the intrastate physical presence of a corporation. For instance, a low sales factor with a high property factor suggests limited sales relative