Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A)Tax benefits of an otherwise legal transaction may be denied if it lacks economic substance.
• B)The economic substance doctrine is similar to the business purpose doctrine.
• C)Reducing taxes is a good business purpose under the economic substance doctrine.
• D)A transaction has economic substance if it changes the taxpayer's economic position or the taxpayer has a substantial business purpose.
• E)More than one of the above statements is false.

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Definitions:

Key Result

A measurable outcome that indicates the success or failure in achieving a set goal or objective.

Primary Activities

The fundamental actions or processes that are directly involved in creating and delivering a product or service to customers.

Value Chain

A model that describes the full range of activities needed to create a product or service, from conception to delivery.

Human Resource Management

involves recruiting, hiring, deploying, and managing an organization's employees.