The Three Categories of Modern Tax Practice Include Tax Planning

question 14

True/False

The three categories of modern tax practice include tax planning, tax compliance, and tax research.

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Definitions:

Fiduciary Duty

An obligation to act in the best interest of another party, such as the relationship between a trustee and the beneficiaries of the trust.

Breach of Fiduciary Duty

Occurs when an individual in a trusted position fails to act in the best interests of another party whom he or she has a duty to.

Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often the corporation's executives or directors, claiming breach of duty.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, held in the company's treasury and not actively traded.