Identify Which of the Following Statements Is True

question 49

Multiple Choice

Identify which of the following statements is true.

• A) Generally in a stock redemption, if the shareholder's ownership percentage is substantially reduced, the redemption is treated as a sale.
• B) A 10% shareholder of a corporation is considered to own 10% of any stock that is owned by the corporation under the Sec. 318 attribution rules.
• C) The family attribution rules of Sec. 318 are as inclusive as the family attribution rules of Sec. 267.
• D) All of the above are false.

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Definitions:

Psychodynamic Therapy

A therapeutic approach emphasizing unconscious processes and past experiences in understanding and treating psychological disorders.

Biological Therapy

The use of physical and chemical procedures to help people overcome psychological problems.

Cognitive Therapy

A form of psychotherapy that emphasizes the important role of thinking in how we feel and what we do; it is focused on changing distorted thoughts to improve emotional response and behavior.

Catharsis

The reliving of past repressed feelings in order to settle internal conflicts and overcome problems.