A Deferral Principle Specifies That Parent Companies Are Not Taxed

question 13

Multiple Choice

A deferral principle specifies that parent companies are not taxed on foreign source income until _____.

• A) the subsidiary providing income makes some profit
• B) they actually receive a dividend
• C) they acquire majority stake in the subsidiary
• D) the subsidiary providing income is listed in the U.S.

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Definitions:

Initial Objective

The starting goal or the immediate aim that sets the direction for activities or efforts to follow.

Structural Family Therapist

A type of therapist who focuses on understanding and improving the structures and patterns within a family to solve problems.

Negative Alliance

A situation in therapy where there is a lack of agreement or cooperation between the therapist and client, hindering progress.

Stable Coalition

A consistent and long-lasting alliance between individuals or groups aimed at achieving common goals.