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:

Phobia

An extreme or irrational fear or aversion to something, often resulting in avoidance behavior and distress.

Systematic Desensitization

A therapeutic technique used to help individuals overcome phobias and anxiety, involving gradual exposure to the feared object or situation.

Phobia Development

The process through which an irrational and intense fear of a specific object, scenario, or activity is formed, often resulting from a negative experience or predisposition.

Watson's Hypothesis

A theory suggesting that all human behaviors can be conditioned, put forward by John B. Watson, a pioneer in behaviorism.