Which of the Following Statements Is False Regarding Consolidated Tax

question 27

Multiple Choice

Which of the following statements is False regarding consolidated tax returns?

• A) An affiliated group can file a consolidated tax return only if it elects to do so.
• B) To file a consolidated tax return, one corporation must own at least 50% of the stock of another corporation.
• C) For a group of corporations filing a consolidated tax return, an advantage is that losses of one group member may offset gains of another group member.
• D) For a group of corporations filing a consolidated tax return, losses from certain intercompany transactions are deferred until realized through a transaction outside of the group.

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Definitions:

Production Era

The Production Era refers to a historical period in business thought where the focus was on production efficiency and scale, under the belief that a good product would naturally find buyers.

Marketing Concept Era

A period when businesses recognized the importance of understanding and meeting the needs and wants of consumers for their success.

Customer Relationship Era

A period in marketing where focus shifts to building long-term relationships with customers, emphasizing satisfaction and engagement over singular transactions.

Marketing Concept

A philosophy suggesting that achieving organizational goals depends on knowing the needs and wants of target markets and delivering desired satisfactions.