Which of the Following Is Likely to Be a Fully

question 49

Multiple Choice

Which of the following is likely to be a fully deductible business expense?

• A)Salaries in excess of the industry average paid to attract talented employees.
• B)The cost of employee uniforms that can be adapted to ordinary personal wear.
• C)A speeding fine paid by a trucker who was delivering a rush order.
• D)The cost of a three-year subscription to a business publication.
• E)None of the choices are likely to be deductible.

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Definitions:

Corporations

Legal entities that are separate from their owners, providing limited liability protection to their shareholders, and capable of owning assets, suing, and being sued.

Guanxi

A Chinese term describing the network of personal connections that facilitate business and other dealings, emphasizing mutual benefit and respect.

Rule-based Theories

Systems of thought that focus on the application of specific, predefined rules or laws to analyze or solve problems.

Ethics

The moral principles that govern a person's behavior or the conducting of an activity, guiding what is good, right, and appropriate.