If a Corporation Does Not Have a Reasonable Business Need

question 35

True/False

If a corporation does not have a reasonable business need, it may not accumulate income in excess of $250,000 without the imposition of the accumulated earnings tax.

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Definitions:

Cumulative Trauma Disorders

Injuries to the musculoskeletal system, such as tendinitis or carpal tunnel syndrome, caused by repetitive motions or strains.

Repetitive-Motion Injuries

Injuries caused by repetitive actions or strains on certain parts of the body, common in workplaces with monotonous tasks.

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Negative Effects

The adverse outcomes or undesirable impacts resulting from a policy, action, or decision.