Which of the Following Statements Is False

question 10

Multiple Choice

Which of the following statements is false?

• A) When the foreign tax rate is less than the U.S. tax rate, deferral can provide significant benefits.
• B) The U.S. tax liability is not incurred until the profits are brought back home if the foreign operation is set up as a foreign branch rather than as a separately incorporated subsidiary.
• C) If a company chooses not to repatriate £12.5 million in pre-tax earnings, for example, it effectively reinvests those earnings abroad and defers its U.S. tax liability.
• D) When the foreign tax rates exceed the U.S. tax rates, there are no benefits to deferral because in such a case there is no additional U.S. tax liability.

Understand the optimum resource mix for a firm and how it is determined.

Examine the influence of productivity and the price of final products on resource demand.

Discuss the concepts of substitution and output effects in resource employment.

Evaluate the impact of market and economic changes on the demand for labor and resources.

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Definitions:

Sentenced to Jail

The legal consequence of being found guilty of a crime, resulting in imprisonment.

Fined Monetarily

Penalized by being required to pay a specific sum of money as punishment for an offense or violation.

Retrained

The act of teaching or training someone or something again, often to regain lost skills or learn new ones.

Nausea

A feeling of sickness with an inclination to vomit.