Identify Which of the Following Statements Is False

question 21

Multiple Choice

Identify which of the following statements is false.

• A) A person who holds an option to acquire stock is considered to own the stock for purposes of the PHC stock requirements.
• B) Stock owned by an individual, in addition to stock attributed from her spouse, parents, children, and siblings, are all counted towards whether or not the personal holding company stock ownership test has been met.
• C) Askew Corporation has ten unrelated shareholders, each of whom owns 10% of the outstanding stock. This corporation is a personal holding company.
• D) S corporations and tax- exempt organizations are excluded from the personal holding company (PHC) definition.

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Definitions:

Decision-making

Decision-making involves selecting a course of action from several alternatives, often based on judgment, research, and deliberation.

McClelland's Acquired Needs Theory

A psychological theory that suggests human needs are acquired over time and shaped by life experiences, emphasizing needs for achievement, affiliation, and power.

Achievement

The accomplishment of a goal or objective, typically requiring effort, skill, or courage.

Power

The ability to get others to do something you want done or to make things happen the way you want.