Match the Definition with the Correct Term

question 22

Multiple Choice

Match the definition with the correct term. Not all of the terms have a match. A definition can be used more than once.
-Owner of shares counted in determining whether a foreign corporation is a controlled foreign corporation.

• A)Foreign base company income
• B)Foreign personal holding company income
• C)Controlled foreign corporation
• D)U.S. shareholder
• E)Previously taxed income
• F)More than 10 percent
• G)More than 50 percent
• H)More than 80 percent

---

Definitions:

Cash Dividend

A payment made by a company out of its earnings to its shareholders, usually in the form of cash.

Net Income

The income a company retains following the deduction of all costs and taxes from its total earnings.

Goodwill

An intangible asset that arises when a company acquires another business for more than the value of its tangible and identifiable intangible assets.

Outstanding Voting Shares

The total number of shares of a corporation's stock that are currently owned by shareholders and have the right to vote.