John Is a Self-Employed Computer Consultant Who Lives and Works

question 80

Multiple Choice

John is a self-employed computer consultant who lives and works in Dallas.John paid for the following activities in conjunction with his business.Which of the following expenditures is not deductible in any amount? 1.Dinner with a potential client where the client's business was discussed.
2) A trip to Houston to negotiate a contract.
3) A seminar in Houston on new developments in the software industry.
4) A trip to New York to visit a school chum who is also interested in computers.

• A)1 only.
• B)2 only.
• C)3 only.
• D)4 only.
• E)None of the choices are correct.

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Definitions:

Lock-Up Option

A contractual agreement where shareholders are prohibited from selling their shares for a specified period following an initial public offering (IPO).

Tender Offer

A tender offer is a proposal made by an entity to the shareholders of another company to purchase some or all of their shares at a specified price for a limited time.

Business Judgment Rule

A legal principle that protects company directors and officers when making business decisions that are informed and made in good faith.

Co-Determination

A practice where workers have a role in management of a company, often through participation in management boards or committees.