According to the Textbook,the Use of Information and Communications Technology

question 40

Multiple Choice

According to the textbook,the use of information and communications technology in corporations has reduced the rigid hierarchical structure of corporations,but at the same time it has created

• A) a three-strata employment system of powerful managers,autonomous technology experts,and less autonomous clerical workers.
• B) telecommuters who are totally disconnected from the corporate culture.
• C) a two-strata employment system of technology experts and less autonomous clerical workers.
• D) unhappiness and incompetence among employees who are telecommuters.

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Definitions:

Nonliquidating Distribution

A nonliquidating distribution refers to distributions made by a corporation to its shareholders that are not in complete termination of the shareholder’s interest in the corporation.

Shareholders

Shareholders are individuals or entities that own one or more shares of stock in a corporation, making them partial owners of that corporation.

Corporation

A legal entity that is separate and distinct from its owners, providing limited liability and the ability to raise capital.

AMT Income

AMT Income refers to the income calculation used to determine the Alternative Minimum Tax, designed to prevent high-income taxpayers from excessively reducing their tax liability through credits and deductions.