Which of the Following Income Earned by a Controlled Foreign

question 60

Multiple Choice

Which of the following income earned by a controlled foreign corporation incorporated in Spain is not foreign personal holding company income?

• A) Interest income received from a loan to an unrelated party.
• B) Dividend income from a five percent investment in an unrelated corporation.
• C) Rent received from a passive investment in an apartment complex.
• D) Gross profit from the manufacture and sale of inventory to an unrelated party.

---

Definitions:

Motivational Impulses

Innate or learned tendencies to act in a way that satisfies certain needs or achieves particular goals.

Affective Impulses

Emotions or feelings that impulsively drive behavior.

Smaller Rewards

Incentives of lower value that are offered or given as a means to motivate behavior or participation.

Hull's Concept

The theoretical framework established by Clark L. Hull, proposing that human behavior is a result of internal biological drives that are learned and influenced by the environment.