If a Corporation Cannot Use Its Interest Payments as a Tax

question 26

Multiple Choice

If a corporation cannot use its interest payments as a tax shield for a particular year because it has suffered a loss, it is still possible to use the tax shield because:
I.the carry-back provision allows corporations to carry back the loss and receive a tax refund up to the amount of taxes paid in the previous two years;
II.the carry-forward provision allows corporations to carry forward the loss and use it to shield income in subsequent years

• A)I only
• B)II only
• C)I and II
• D)the firm will lose the tax shield

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Definitions:

International Sales

International sales involve the selling of goods and services across national borders, requiring knowledge of various markets, cultures, and regulations.

Cold Canvassing

A sales technique where individuals or businesses are approached without prior contact or relationship, often used to solicit new customers or gather information.

Personal Selling Process

describes the sequence of steps salespeople follow to persuade potential customers to purchase a product or service.

Cultural Setting

The environment and context influenced by societal norms, values, practices, and beliefs in which individuals or groups operate.