In Order to Deduct a Portion of the Cost of a Business

question 11

Multiple Choice

In order to deduct a portion of the cost of a business meal which of the following conditions must be met?

• A) A client (not a supplier or vendor) must be present at the meal.
• B) The taxpayer or an employee must be present at the meal.
• C) The meal must occur on the taxpayer's business premises.
• D) None of the choices is a condition for the deduction.
• E) All of the choices are conditions for a deduction.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Cost Of Capital

The minimum rate of return a company must earn on its investments to maintain its market value and satisfy its investors.

Individual Project

A specific, defined task or study designed to achieve particular goals within a given timeframe, typically involving a detailed plan and execution by one or more individuals.

Weighted Average

An analysis that incorporates the diverse levels of relevance of the numbers within a dataset.