Which of the Following Is an Explanation for Why Insurance

question 14

Multiple Choice

Which of the following is an explanation for why insurance premiums on a key employee are not deductible?

• A) This rule was grandfathered from a time when the Internal Revenue Code disallowed all insurance premiums deductions.
• B) It is impractical to trace insurance premiums to the receipt of proceeds.
• C) Congress presumes that all expenses are not deductible unless specifically allowed in the Internal Revenue Code.
• D) A deduction for the insurance premium would offset taxable income without the potential for the proceeds generating taxable income.
• E) The federal government does not want to subsidize insurance companies.

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Definitions:

Supply Chain Companies

Businesses involved in the movement of goods from manufacturers to consumers, including production, distribution, and fulfillment services.

Off-Shore Sourcing

The practice of sourcing products or services from suppliers located in foreign countries, often to take advantage of lower costs or specialized skills.

External Forces

External forces refer to outside influences that affect an organization, market, or environment, such as economic conditions, legal policies, and social trends.

Economic Landscape

The overall condition and characteristics of the economy at a certain time, including factors like GDP growth, unemployment rates, and inflation.