With Respect to a Stock Interest in a Closely Held

question 26

Multiple Choice

With respect to a stock interest in a closely held corporation, which, if any, of the following works to increase the gross estate value of the interest?

• A) The stock is not marketable.
• B) A majority interest is involved.
• C) The profits of the business are less than the industry average.
• D) The blockage rule applies.

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Definitions:

Positive Externality

A beneficial effect experienced by a third party, resulting from an economic transaction that they are not directly involved in.

Beautiful Lawn

A well-maintained and visually appealing grass area around homes or in parks, often characterized by green, lush, and orderly appearance.

Pollution

The presence or introduction into the environment of substances or things that have harmful or poisonous effects.

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.