Which of the Following Expenditures Would Not Be Deductible as a Business

question 6

Multiple Choice

Which of the following expenditures would not be deductible as a business expense?

• A)Costs of holding a business training session at a local hotel
• B)The fare for flying business class to an overseas meeting
• C)Paying the interest on a loan for the owner's grandfather
• D)Paying the owner's 17 year old son a salary of $9 per hour for cleaning and janitor services

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Definitions:

General Revenue Sharing

A federal government program that provides funds to local governments with minimal restrictions on how the money is spent, allowing for local discretion.

Unfunded Mandates

Regulations or mandates imposed by higher levels of government without providing the necessary funding to fulfill them.

Tenth Amendment

An amendment to the U.S. Constitution that reserves powers not delegated to the federal government to the states or to the people.

Necessary and Proper Clause

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