Which of Following Generally Does Not Indicate an Unreasonable Earnings

question 10

Multiple Choice

Which of following generally does not indicate an unreasonable earnings accumulation?

• A) expenditure of corporate funds for the personal benefit of the shareholders
• B) planned expansion of business facilities
• C) loans to shareholders
• D) investments in properties or securities unrelated to the activities of the corporation

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Definitions:

Discretion

The quality of behaving or speaking in such a way as to avoid causing offense or revealing confidential information.

Certified Check

A payer’s check written and signed by the payer, which is stamped “certified” by the bank. The bank has already drawn money from the payer’s account to guarantee that the check will be paid.

Managed Care Organizations

Health organizations that provide medical care directly to the insured person with the aim to improve healthcare services while controlling costs.

Bilateral Agreement

A binding contract between two parties, often countries, to agree on specified actions, obligations, or concessions.