Identify Which of the Following Statements Is True

question 26

Multiple Choice

Identify which of the following statements is true.

• A) An affiliated group electing to file a consolidated return may be composed of as few as two corporations.
• B) To be part of an affiliated group, a corporation must be at least 80% directly owned by another group member.
• C) Only common stock is considered when determining if the 80% ownership test is met for affiliated group eligibility.
• D) All of the above are false.

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Definitions:

Continuation

In patent law, a type of application that proposes a continuation of the examination process for an existing application, providing additional claims without affecting the original filing date.

New Partnerships

Newly formed legal entities created by two or more parties agreeing to do business together for profit.

Dissociated Partner

A partner who has withdrawn from a partnership, thereby ending his or her involvement with the business.

Liability

The legal responsibility or obligation to compensate for harm caused, debts owed, or for fulfilling specific duties.