A Corporation Cannot Reasonably Accumulate Earnings to

question 43

Multiple Choice

A corporation cannot reasonably accumulate earnings to

• A) protect against pending litigation.
• B) self- insure.
• C) redeem stock of an elderly shareholder where such accumulation occurs prior to the shareholder's death.
• D) fund an employee retirement plan.

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Definitions:

Behavioral

relates to actions, responses, or reactions of individuals or systems in response to external or internal stimuli.

Physiological

Pertaining to the functions and activities of living organisms and their parts, including all physical and chemical processes.

Trembling

Involuntary shaking or quivering movements, often resulting from emotional states, cold, or medical conditions.

James-Lange Theory

A theory of emotion that proposes emotions result from our interpretation of bodily reactions to stimuli rather than from an emotional state causing physiological responses.