A Corporation Cannot Reasonably Accumulate Earnings to

question 38

Multiple Choice

A corporation cannot reasonably accumulate earnings to

• A)protect against pending litigation.
• B)fund an employee retirement plan.
• C)self-insure.
• D)redeem stock of an elderly shareholder where such accumulation occurs prior to the shareholder's death.

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Definitions:

Birth Defects

Birth defects are physical or biochemical abnormalities that are present at birth and can affect the structure or function of the body, impacting health and development.

Abortion

The medical termination of a pregnancy before the fetus is capable of surviving outside the uterus, a topic of significant ethical, legal, and social debate.

Financial Inability

The lack of sufficient financial resources to meet basic needs or to invest in opportunities.

Amniocentesis

A procedure in which fluid is withdrawn from a woman’s abdomen and analyzed for abnormalities in the fetus.