Countries Differ in How They Tax Foreign-Source Income of Their

question 63

Multiple Choice

Countries differ in how they tax foreign-source income of their domestic MNCs.

• A)Therefore, different forms of structuring a multinational organization within a country can result in different tax liabilities for the firm.
• B)However, due to tax treaties and foreign tax credits, this is not an issue for a U.S.-based MNC.
• C)But all countries tax domestic income of their domestic MNCs in the same way.
• D)All of the above

---

Definitions:

External Factors

Elements outside an organization or individual's control that can impact their performance, decision-making, and strategies.

Internal Personal Factors

The psychological or physiological aspects within an individual that influence their behavior, choices, and interactions.

Positive Reinforcement

Positive reinforcement strengthens a behavior by making a desirable consequence contingent on its occurrence.

Successive Approximations

A technique in behavior modification where desired behaviors are gradually learned through a series of steps that get closer to the target behavior.