Which of the Following Statements About Tax Minimization Is True

question 41

Multiple Choice

Which of the following statements about tax minimization is true?

• A) Tax minimization always maximizes the NPV of a transaction.
• B) Tax minimization should be the goal of business and financial planning.
• C) Tax minimization with respect to a transaction may not be the optimal strategy.
• D) Tax minimization has no effect on nontax cash flows.

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Definitions:

Brand or Equal

Specification term indicating that a product of a specific brand name or one of equal quality or performance can be supplied.

Equality

The state or condition of being equal, especially in status, rights, or opportunities, promoting fairness and non-discrimination.

Environmental Implications

The impact or consequences of actions or decisions on the natural environment, including aspects related to sustainability, pollution, and resource depletion.

Transportation Implications

The potential effects and consequences transportation decisions and policies may have on the economy, environment, and society.