What Guidelines Does the IRS Follow That Impose Certain Ownership

question 17

Multiple Choice

What guidelines does the IRS follow that impose certain ownership and minimum capital requirements to avoid "dummy" corporations to act as sole corporate general partners.

• A) Safe harbor rules
• B) Caveat rules
• C) Blind pool rules
• D) Regulation corporation rules

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Definitions:

Settlement Date

The day on which a trade is finalized, and the buyer must make payment and the seller deliver the asset.

Foreign Exchange Gain

Profit arising from the appreciation of a foreign currency relative to the functional currency in foreign currency transactions.

Settlement Date

The date on which a trade or financial transaction must be completed, with the transfer of the asset and payment.

Year End

The end of a fiscal year or accounting period, at which time companies close books and prepare financial statements.