If a C Corporation Incurs a Net Operating Loss in 2020

question 54

True/False

If a C corporation incurs a net operating loss in 2020, it may carry the loss back two years and forward 20 years to offset income in those years.

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Definitions:

Angel Investor

An affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Venture Capitalists

Investors who provide capital to startup companies and small businesses with long-term growth potential in exchange for equity.

Financial Support

Monetary assistance provided to individuals or organizations to help cover costs or fund activities.

ESOP

Employee Stock Ownership Plan, a program that provides a company's workforce with an ownership interest in the company, usually in the form of stock shares.