Which of the Following Statements Is True of Tax Havens

question 46

Multiple Choice

Which of the following statements is true of tax havens?

• A) Firms that export to tax havens get special tax concessions from home governments.
• B) Firms would require huge capital investments to start business in tax havens.
• C) Nations such as United States are widely regarded as tax havens.
• D) Firms can save tax by establishing a non-operating subsidiary in the tax haven.

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Definitions:

Opposing Processes

A principle in psychology that refers to the idea that every process triggers an opposite counter-process, aiming to maintain homeostasis or balance.

Balance

The state of equilibrium or equipoise; in psychology, it often refers to mental or emotional stability.

Entropy Principle

A tendency toward balance or equilibrium within the personality; the ideal is an equal distribution of psychic energy over all structures of the personality.

Psychic Energy

A Freudian concept referring to the energy generated by innate drives and instincts, which powers the mind and motivates behavior.