Both Tax and Nontax Objectives Should Be Considered When Choosing

question 68

True/False

Both tax and nontax objectives should be considered when choosing an appropriate business entity.

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Definitions:

Self-Interest

In economics and psychology, it refers to actions that are primarily intended to benefit oneself.

Nonfraudulent Representation

Any statement or declaration that is truthful and not intended to deceive or mislead.

Scienter

A legal term referring to the knowledge of wrongdoing or fraudulent intent in actions that lead to litigation, particularly in securities fraud.

Silence

The absence of sound or the state of choosing not to speak or respond in communication.