What Does the Term "Repatriated Profits" Refer To

question 26

Multiple Choice

What does the term "repatriated profits" refer to?

• A) It refers to the transfer of profits earned by firms from their domestic operations to fund their overseas operations.
• B) It refers to profits accumulated by firms in their overseas operations that are transferred to the United States.
• C) It refers to profits accumulated by firms in their overseas operations that are not subject to U.S. taxes as long as these profits are used to purchase U.S. government bonds.
• D) It refers to the transfer of profits earned by firms from their domestic operations to be distributed as dividends to their partners in foreign countries.

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Definitions:

CRA

Stands for Canada Revenue Agency, the federal agency responsible for administering tax laws and various social and economic benefit and incentive programs.

Potential New Shareholders

Individuals or entities that may consider investing in a company's equity but currently do not hold any shares.

Auction Market

A marketplace in which buyers and sellers express their prices through bids and offers, and transactions occur at prices where supply and demand meet.

OTC Market

Over-the-counter market, a decentralized market where securities not listed on major exchanges are traded directly between parties.