Identify Which of the Following Statements Is True

question 8

Multiple Choice

Identify which of the following statements is true.

• A)The personal holding company tax is levied to prevent closely held corporations from sheltering passive income.
• B)Caleb Corporation is owned by a mother and her two daughters. It reports $100,000 of rental income; $30,000 of depreciation, interest, and property taxes on the rental real estate; and $10,000 of dividend income. Caleb Corporation is classified as a personal holding company.
• C)Luke Corporation is owned by a father and his son. The corporation employs 10 individuals to provide public accounting services. Father and son make all of the work assignments for the professional employees. The professional fees earned by the corporation are personal holding company income.
• D)All of the above are false.

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Definitions:

Authoritarian Leadership

Demands strict compliance from subordinates. Authoritarian leaders are most effective in a crisis, such as a war or the emergency room of a hospital.

Democratic Leadership

Offers more guidance than the laissez-faire variety but less control than the authoritarian type. Democratic leaders try to include all group members in the decision-making process, taking the best ideas from the group and molding them into a strategy with which all can identify. Except during crisis situations, democratic leadership is usually the most effective leadership style.

Hawthorne Research

Studies conducted primarily at the Western Electric Company's Hawthorne Works in Chicago, which focused on how varying working conditions affected employee productivity, emphasizing the social and psychological factors.

Social Networks

platforms or communities where individuals can communicate, share information, or form relationships online.