One Simple Way of Addressing Foreign Tax Risks Is A(n)__________,whereby

question 59

Multiple Choice

One simple way of addressing foreign tax risks is a(n) __________,whereby the local licensee is obligated to pay all taxes other than those specifically allocated to the foreign partner.

• A) gross-up clause
• B) tax shift clause
• C) local commitment clause
• D) overseas investment clause

---

Definitions:

Prior Service Cost

The cost associated with retroactive benefits granted in a pension plan amendment, recognized over the service lives of affected employees.

Plan Assets

Assets that are specifically earmarked to pay pension benefits, typically held in a pension fund.

Pension Expense

An accounting charge representing the cost to a company of providing retirement benefits to employees during a particular time period.

Projected Benefit Obligation

An actuarial measure of the present value of pension benefits owed to employees, accounting for projected salary increases.