Identify Which of the Following Statements Is False

question 21

Multiple Choice

Identify which of the following statements is false.

• A) A person who holds an option to acquire stock is considered to own the stock for purposes of the PHC stock requirements.
• B) Stock owned by an individual, in addition to stock attributed from her spouse, parents, children, and siblings, are all counted towards whether or not the personal holding company stock ownership test has been met.
• C) Askew Corporation has ten unrelated shareholders, each of whom owns 10% of the outstanding stock. This corporation is a personal holding company.
• D) S corporations and tax- exempt organizations are excluded from the personal holding company (PHC) definition.

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Definitions:

Optimal Choice

The best possible decision or selection made from a set of alternatives, given the constraints and objectives at hand.

Hot Dog Buns

Baked goods specifically designed to hold and serve hot dogs.

Budget Line

A depiction in graphic form of every achievable combination of two commodities that can be acquired based on a specified financial capacity and pricing.

Indifference Curve

An economic graph representing combinations of goods that give a consumer equal satisfaction and utility.