Which of the Following Are "Reasonable Needs" That Will Help

question 77

Multiple Choice

Which of the following are "reasonable needs" that will help a corporation in avoiding the accumulated earnings tax?

• A)The corporation is opening locations in neighboring cities.
• B)Funds are used to make a loan to a major shareholder.
• C)The corporation uses funds for the redemption of the stock of a disgruntled shareholder.
• D)Not making distributions helps to minimize the combined shareholder/corporation tax liabilities.
• E)All of the above.

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Definitions:

Managers Share

The portion of responsibility or information that managers possess and often distribute among team members to achieve organizational goals.

Facilitator

A person who makes an action or process easy or easier, often in a group or meeting setting.

Discussion

An interactive and structured conversation where ideas, opinions, or issues are exchanged among participants.

Information Sharing

The exchange of data or information between individuals, teams, departments, or organizations.