Which of the Following Statements Regarding Inversions Is Incorrect

question 83

Multiple Choice

Which of the following statements regarding inversions is incorrect?

• A)The objective of an inversion is to avoid U.S.tax on worldwide income.
• B)In an inversion,a U.S.corporation reorganizes as a foreign corporation.
• C)The IRS will disregard the inversion if the former shareholders of the U.S.corporation continue to own 60% of the foreign corporation's stock.
• D)The IRS will examine whether the foreign corporation conducts substantial business in the foreign country of incorporation to determine if the inversion is valid.

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Definitions:

Business Friendship

A relationship between individuals who may benefit professionally from knowing each other.

Medium Degree

A level of qualification, intensity, or measurement that is considered average or moderate.

Trust And Wisdom

Key elements in building strong relationships, where trust involves confidence in someone's reliability and wisdom denotes sound judgment and insight.

Customer Service

The support and assistance companies provide to their customers before, during, and after a purchase, crucial for customer satisfaction and loyalty.