Identify Which of the Following Statements Is True

question 50

Multiple Choice

Identify which of the following statements is true.

• A) A corporation bears the burden of proving that its earnings are not being accumulated to avoid income taxes.
• B) To avoid the accumulated earnings tax, a corporation needs to have a definite plan for expending the accumulated earnings.
• C) In practice, the accumulated earnings tax applies only to closely held corporations.
• D) All of the above are true.

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Definitions:

Psychosocial Theory

A theory proposed by Erik Erikson that outlines eight stages of psychological development from infancy to late adulthood, each characterized by a specific conflict that contributes to a major aspect of personality.

Shaping Behavior

A method of positive reinforcement in psychology that gradually trains a new behavior by rewarding successive approximations of the desired behavior.

Ego

Part of Freud's psychoanalytic theory of personality, mediating between the demands of the id, the superego, and reality, and operating consciously and unconsciously to help the individual adapt.

Industrial Revolution

A period of major industrialization from the late 18th to early 19th century that transformed primarily agrarian, rural societies in Europe and America into industrialized, urban ones.