Which of the Following Would Not Be a Successful Means

question 63

Multiple Choice

Which of the following would not be a successful means of avoiding double tax on the earnings of a closely-held corporation?

• A) Having a shareholder lend money to the corporation at a reasonable rate of interest.
• B) Having a shareholder lease warehouse space to the corporation at a reasonable rental rate.
• C) Having the corporation pay the shareholder a fixed percentage of the par value of the stock the shareholder owns.
• D) Having the corporation employ the shareholder at a reasonable compensation.

Understand how net wealth influences consumption and saving.

Discern the movement along and shifts in the consumption function due to changes in disposable income.

Recognize the influences of market interest rates on investment decisions.

Understand the factors contributing to fluctuations in investment and its impact on GDP.

---

Definitions:

Black Families

Refers to family units or households identified or classified as Black or African American, often studied in socio-economic and cultural contexts.

Forbes Magazine

An American business magazine known for its financial, investing, and marketing topics, as well as its lists of the wealthy and powerful.

Wealthiest People

Individuals with the highest net worth in the world, often derived from their ownership in profitable businesses, investments, and assets.

Rich Parents

Colloquially refers to individuals whose parents possess substantial wealth, potentially affecting their economic opportunities.