Which of the Following Statements About Tax Minimization Is True

question 41

Multiple Choice

Which of the following statements about tax minimization is true?

• A) Tax minimization always maximizes the NPV of a transaction.
• B) Tax minimization should be the goal of business and financial planning.
• C) Tax minimization with respect to a transaction may not be the optimal strategy.
• D) Tax minimization has no effect on nontax cash flows.

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