Identify Which of the Following Statements Is False

question 53

Multiple Choice

Identify which of the following statements is false.

• A)Askew Corporation has ten unrelated shareholders, each of whom owns 10% of the outstanding stock. This corporation is a personal holding company.
• B)Stock owned by an individual, in addition to stock attributed from her spouse, parents, children, and siblings, are all counted towards whether or not the personal holding company stock ownership test has been met.
• C)S corporations and tax-exempt organizations are excluded from the personal holding company (PHC)definition.
• D)A person who holds an option to acquire stock is considered to own the stock for purposes of the PHC stock requirements.

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Definitions:

Land Owners

Individuals or entities that hold legal title to a piece of land, granting them rights to its use, benefits, and disposal.

Industry Employment

Employment within the industrial sector, which includes manufacturing, construction, and mining activities, often characterized by the production of goods.

American West

A region of the United States west of the Mississippi River, historically known for its frontier culture, exploration, and expansion during the 19th century.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to help recover from the Great Depression.