If a German Firm Owns a U

question 42

Multiple Choice

If a German firm owns a U.S.- based firm that is domiciled in the U.S., the combined firm is subject to the corporate tax laws in _______ and income tax laws in _______.

• A)U.S.; U.S.
• B)Germany; U.S.
• C)U.S.; Germany
• D)Germany; Germany

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Definitions:

Necessary and Proper Clause

A provision in the U.S. Constitution granting Congress the power to pass all laws deemed necessary and proper for executing its enumerated powers.

Full Faith and Credit Clause

A constitutional mandate requiring states to recognize and respect the public records, judicial proceedings, and legislative acts of other states.

Brady Handgun Violence Prevention Act

Federal legislation that requires background checks on individuals before a firearm purchase to prevent firearms sales to prohibited buyers.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases involving points of federal law.