A Foreign Corporation with a Single Class of Stock Is

question 1

Essay

A foreign corporation with a single class of stock is owned equally by Jericho Corporation, a U.S. corporation, and Joshua, a nonresident alien. Joshua owns no Alpha Corporation stock. Is the foreign corporation a controlled foreign corporation (CFC)?

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Definitions:

Clayton Act Section 7

A provision of U.S. antitrust law that prohibits mergers and acquisitions that may substantially lessen competition or tend to create a monopoly.

Lessening Competition

refers to actions or agreements that reduce the level of competition in a market, potentially leading to monopolies or oligopolies.

Horizontal Mergers

Mergers between companies that operate in the same industry or market level, often scrutinized for their potential to reduce competition.

Clayton Act

An antitrust law enacted in the United States to promote competition and prevent monopolies by prohibiting certain actions that could lead to anti-competitive practices.