Identify Which of the Following Statements Is True

question 8

Multiple Choice

Identify which of the following statements is true.

• A)The personal holding company tax is levied to prevent closely held corporations from sheltering passive income.
• B)Caleb Corporation is owned by a mother and her two daughters. It reports $100,000 of rental income; $30,000 of depreciation, interest, and property taxes on the rental real estate; and $10,000 of dividend income. Caleb Corporation is classified as a personal holding company.
• C)Luke Corporation is owned by a father and his son. The corporation employs 10 individuals to provide public accounting services. Father and son make all of the work assignments for the professional employees. The professional fees earned by the corporation are personal holding company income.
• D)All of the above are false.

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Definitions:

Internal Customer Audit

An evaluation process that focuses on examining and improving the services provided within an organization to its employees or departments treated as customers.

Customer Relationship Era

A business approach focusing on building long-term relationships with customers, emphasizing customer loyalty and retention over one-time sales.

High Expectations

The belief or anticipation that something will happen or be the case at a level above the norm or beyond the usual.

Societal Marketing

A marketing approach that considers not only the needs and wants of consumers but also the welfare of society and long-term environmental sustainability.