In Which of the Following Independent Situations Would Slane, a Foreign

question 108

Multiple Choice

In which of the following independent situations would Slane, a foreign corporation, be classified as a controlled foreign corporation? The Slane stock is directly owned 12% by Jen, 10% by Kathy, 12% by Leslie, 10% by David, 8% by Ben, and 48% by Mike.

• A) Jen, Kathy, Leslie, David, Ben, and Mike are all U.S. citizens.
• B) Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. David is married to Kathy. Mike is a foreign resident and citizen.
• C) Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. Ben is Mike's son. Mike is a foreign resident and citizen.
• D) Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. Mike is a foreign resident and citizen.

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Definitions:

Small Business Management

Refers to overseeing the operations, strategy, and financial health of a small, typically local, business.

Processes

A series of actions or steps taken in order to achieve a particular end in a business setting.

IPOs

Initial Public Offerings, the process by which a private company offers shares to the public in a new stock issuance.

ESOPs

Employee Stock Ownership Plans, which are programs that provide a company's workforce with ownership interest in the company through stocks.