Which of the Following Statements Is Incorrect with Respect to Parent-Subsidiary

question 79

Multiple Choice

Which of the following statements is incorrect with respect to parent-subsidiary corporations?

• A)If a consolidated tax return is filed,losses on intercompany sales cannot be immediately recognized.
• B)A parent-subsidiary group must file a consolidated tax return.
• C)A parent-subsidiary group is one where a common parent corporation owns,directly or indirectly,at least 80% of one or more other corporations.
• D)With a consolidated return,net losses of one company can offset net income from another company.

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Definitions:

High-context Culture

A communication style where much of the message is conveyed through implicit elements such as body language, tone of voice, and context, rather than explicit words.

Edward Hall

An anthropologist known for his pioneering work in the study of proxemics and cross-cultural communication.

Anthropologist

A social scientist specializing in the study of human societies, cultures, and their development.

High-context Culture

A culture in which communication relies heavily on the underlying context and nonverbal cues rather than explicitly stated words.