Making Use of Legitimate Methods to Reduce One's Taxes Is

question 38

Multiple Choice

Making use of legitimate methods to reduce one's taxes is called tax ____________.

• A)evasion
• B)planning
• C)exemptions
• D)deferred techniques
• E)reductions

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Definitions:

Appraisal Remedy

A legal process that allows shareholders to have a court assess the value of their shares, often used in cases of mergers or acquisitions where shareholders are dissatisfied with the proposed compensation.

Dissenting Shareholder

refers to a shareholder who disagrees with a corporate decision and is entitled to certain rights, such as selling their shares back to the company under specific conditions.

Fundamental Change

A significant alteration in the structure, operations, or policies of a company or organization that fundamentally affects its nature.

Prescribed Time Period

A specific duration set by a statute or agreement within which an action must be taken or a right may expire.