What Does the Term "Repatriated Profits" Refer To

question 26

Multiple Choice

What does the term "repatriated profits" refer to?

• A) It refers to the transfer of profits earned by firms from their domestic operations to fund their overseas operations.
• B) It refers to profits accumulated by firms in their overseas operations that are transferred to the United States.
• C) It refers to profits accumulated by firms in their overseas operations that are not subject to U.S. taxes as long as these profits are used to purchase U.S. government bonds.
• D) It refers to the transfer of profits earned by firms from their domestic operations to be distributed as dividends to their partners in foreign countries.

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Definitions:

Loss from Sale

An unfavorable difference between the selling price of an asset and its book value, leading to a financial loss for the entity.

Assets

Resources owned or controlled by a business, expected to bring future economic benefits.

Liabilities

Liabilities or monetary duties a firm has towards outside entities.

Revenues

The overall income earned from transactions of goods or services central to a business's core functions.