Which of the Following Statements Is False

question 4

Multiple Choice

Which of the following statements is false?

• A) U.S. tax policy requires U.S. corporations to pay taxes on their foreign income at the same rate as profits earned in the United States.
• B) The home government gets an opportunity to tax the income from a foreign project to the domestic firm.
• C) The general international arrangement prevailing with respect to taxation of corporate profits is that the home country gets the first opportunity to tax income.
• D) The home government must establish a tax policy specifying its treatment of foreign income and foreign taxes paid on that income.

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Definitions:

Strike-Slip Fault

A type of fault in which two blocks of the Earth's crust slide past each other horizontally along the fault plane.

Reverse Fault

A type of fault where the hanging wall moves up relative to the footwall, often created by compressive forces.

Normal Fault

A type of fault where the hanging wall has moved downward relative to the footwall, typically associated with extensional tectonics.

Horizontal Compression

A stress regime where forces push inwards from opposite sides, often leading to folding, faulting, or shortening of the Earth's crust.