Which of the Following Transactions Does Not Have the Potential

question 99

Multiple Choice

Which of the following transactions does not have the potential of creating a constructive dividend?

• A)compensation paid by a corporation to a shareholder-employee
• B)purchase of corporate property by the shareholder
• C)shareholder's rental of corporate property
• D)All of the above can result in a constructive dividend.

Comprehend the concept of form tolerances and their applications including straightness, flatness, circularity, and additional features.

Understand the relationship between circularity tolerance and datums.

Explain the definition and requirements for flatness tolerance.

Describe the limitations of modifying circularity tolerance on an MMC basis.

---

Definitions:

Coercive

Relating to or using force or threats to persuade someone to do something or comply with one's demands.

Expert

A person who possesses a high level of knowledge, skills, or expertise in a particular field or area.

Referent

The entity to which a word or phrase refers or relates.

Legitimate Power Base

A source of influence based on the formal authority one holds within an organization's structure or society's laws.