A Foreign Corporation Is Owned by Five Unrelated Individuals

question 51

Multiple Choice

A foreign corporation is owned by five unrelated individuals. John, Sam, and David are U.S. citizens who own 30%, 18% and 9%, respectively, of the foreign corporation's single class of stock. Alberto and Manuel are nonresident aliens who own 37% and 6%, respectively, of the foreign corporation's stock. Which of the following statements is true?

• A)There are three "U.S. shareholders" and the foreign corporation is a controlled foreign corporation (CFC).
• B)There are three "U.S. shareholders" and the foreign corporation is not a controlled foreign corporation (CFC).
• C)There are two "U.S. shareholders" and the foreign corporation is not a controlled foreign corporation (CFC).
• D)There are two "U.S. shareholders" and the foreign corporation is a controlled foreign corporation (CFC).

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Definitions:

Broad Search

An extensive or wide-ranging examination or inquiry, often used in the context of searching for information across various sources or platforms.

Coolhunting

The process of identifying and analyzing new trends, styles, and cultural shifts, often used in marketing and product development to stay ahead of consumer tastes.

Across Media

Refers to the elements that exist or operate in different types of media platforms or across various media channels.

Strategic Gains

Benefits or advantages achieved through the implementation of strategic planning and actions in a business context.