Which of the Following Statements Regarding Foreign Persons Not Engaged

question 14

Multiple Choice

Which of the following statements regarding foreign persons not engaged in a U.S. trade or business is true?

• A) Foreign persons are subject to potential withholding taxes on the gross amount of U.S.-source investment income.
• B) Foreign persons with any U.S.-source income are taxed on net investment income (after expenses).
• C) Foreign persons are not subject to U.S. tax if not engaged in a U.S. trade or business.
• D) Foreign persons with only U.S.-source investment income are exempt from U.S. tax.

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Definitions:

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Resource Supplies

The availability and allocation of resources (such as raw materials, finances, and labor) necessary for the production of goods and services.

Coordination

Coordination involves the organization and synchronization of activities, tasks, or efforts in a process to ensure smooth and efficient operation or workflow.

Centralization

The accumulation of decision-making power at the uppermost tiers of an organization's structure.