Which of the Following Statements Regarding a Non-U

question 125

Multiple Choice

Which of the following statements regarding a non-U.S. person's U.S. tax consequences is true?

• A) Non-U.S. persons may be subject to U.S. withholding tax on U.S.-source investment income.
• B) Non-U.S. individuals may be subject to U.S. income tax but non-U.S. corporations are never subject to U.S. income tax.
• C) Non-U.S. persons are subject to U.S. income or withholding tax only if engaged in a U.S. trade or business.
• D) Non-U.S. persons must be physically present in the United States before any U.S.-source income is subject to U.S. income or withholding tax.

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Definitions:

Short-term Pension Risk Ratio

A measure assessing the risk associated with a pension plan's ability to meet its short-term obligations.

Funded Status

A measure of the financial health of a pension plan, calculated as the difference between plan assets and liabilities.

Capital Constraints

Limitations that businesses face due to the scarcity of financial resources for investment.

Defined Benefit Pension Plans

Retirement plans where an employer promises a specified pension payment upon retirement, based on the employee's earnings and years of service.