Which of the Following Is a True Statement

question 79

Multiple Choice

Which of the following is a true statement?

• A)Interest expense is not deductible if the loan is used to purchase municipal bonds.
• B)Insurance premiums are not deductible if paid for "key man" life insurance.
• C)One half of the cost of business meals is not deductible.
• D)All of these choices are true.
• E)None of the choices are true.

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Definitions:

Socialist System

An economic and political system where the means of production, distribution, and exchange are owned and regulated by the community as a whole.

Capitalist System

An economic system based on private ownership of the means of production and their operation for profit, characterized by competition, a market economy, and private property rights.

Fourteenth Amendment

An amendment to the U.S. Constitution, ratified in 1868, that granted citizenship to all persons born or naturalized in the United States, including former slaves, and guaranteed all citizens equal protection of the laws.

Laissez-Faire

An economic philosophy of free-market capitalism that opposes government intervention.