Together,Kurt and Esmeralda Own 60% of Three Corporations: RAZ,DVA,and TRE

question 76

Multiple Choice

Together,Kurt and Esmeralda own 60% of three corporations: RAZ,DVA,and TRE.The three corporations would be considered as what kind of controlled group for tax purposes?

• A) Parent-subsidiary.
• B) Brother-sister.
• C) Combined.
• D) The three corporations would not be considered to be a controlled group for tax purposes.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Advertising Campaign

A series of advertisement messages that share a single idea and theme intended to achieve specific business objectives.

Contribution Margin Ratio

A measure of how a company's sales revenue contributes to covering its variable costs.

Fixed Costs

Expenses that do not change in total volume with changes in the level of business activity, such as rent or salaries.