A Net Operating Loss

question 13

Multiple Choice

A net operating loss:

• A) Must always be carried back 2 years
• B) Occurs when a company reports a net loss in their income statement
• C) May be carried forward indefinitely
• D) Must always be carried forward 20 years

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Definitions:

Strategic Alliance

A formal agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.

Single Corporation

An individual corporate entity, usually distinguished from a conglomerate or holding company owning multiple subsidiaries.

Autonomous

Having the ability to operate independently or self-govern without external control or influence, often used in reference to machines, systems, or organizations.

Homeless Shelter

A place providing temporary accommodation for people who do not have a permanent home.