Which of the Following Holds True for the Means Test

question 2

Multiple Choice

Which of the following holds true for the means test?

• A)The debtor has to be able to pay $200 per month for 5 years.
• B)If the debtor's income is greater than the states median income he will have to take a means test.
• C)The means test has been around for years.
• D)Everyone will have to pass a means test.

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Definitions:

S-Type Corporations

S Corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.

Personal Tax Rates

The percentage at which an individual is taxed on their income, which varies according to income levels and jurisdictions.

Agency Problem

A conflict of interest inherent in any relationship where one party is expected to act in another's best interests, such as between shareholders and management.

Corporate Behavior

The actions, strategies, and practices of companies in pursuit of their business goals, affecting stakeholders internally and externally.