Which of the Following Tax or Non-Tax Benefits Does Not

question 71

Multiple Choice

Which of the following tax or non-tax benefits does not arise when a U.S.corporation forms a hybrid entity in Germany through which to earn business profits in Germany and elects to have the entity treated as a branch for U.S.tax purposes?

• A) Potential deferral of U.S. tax on income earned by the corporation.
• B) Flow-through of losses from the German corporation to the tax return of the U.S. corporation.
• C) Limited liability to the U.S. corporation for acts committed by the hybrid entity.
• D) Free transferability of the stock of the hybrid entity by the U.S. corporation.

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Definitions:

Introducing Intervention

A process or strategy designed to initiate change or improvement in a specific situation or system.

Opening Exercise

An initial activity conducted at the start of a meeting, training session, or workshop designed to prepare participants for the session ahead.

Treasure Hunt

A game in which participants search for hidden objects or places by following a series of clues.

Ordinarily Reveal

Typically disclosing or making known information that was previously private or unknown.