Which of the Following Statements Regarding Foreign Persons Not Engaged

question 14

Multiple Choice

Which of the following statements regarding foreign persons not engaged in a U.S. trade or business is true?

• A) Foreign persons are subject to potential withholding taxes on the gross amount of U.S.-source investment income.
• B) Foreign persons with any U.S.-source income are taxed on net investment income (after expenses).
• C) Foreign persons are not subject to U.S. tax if not engaged in a U.S. trade or business.
• D) Foreign persons with only U.S.-source investment income are exempt from U.S. tax.

---

Definitions:

Dual-Aspect Theory

A philosophical concept that posits that the mind and body are two aspects of the same reality, where mental and physical properties are seen as different manifestations of the same underlying substance or reality.

Spinoza

A 17th-century Dutch philosopher known for his work in ethics, epistemology, and his monistic view of the universe.

Shared Identity

The collective sense of belonging to a group where members share similar attributes, beliefs, or values.

Us Versus Them

A psychological and social phenomenon that divides populations into opposing groups, often leading to conflict and discrimination.