Which of the Following Statements Is False

question 43

Multiple Choice

Which of the following statements is false?

• A) Other benefits from deferral arise because the firm effectively gains a real option to repatriate income at times when repatriation might be cheaper.
• B) By pooling foreign income, the firm effectively pays the combined tax rate on all foreign income.
• C) In years in which the U.S. tax rate exceeds the combined tax rate on all foreign income, the repatriation of additional income does not incur an additional U.S. tax liability, so the earnings can be repatriated tax free.
• D) Deferring repatriation of earnings lowers the overall tax burden in much the same way as deferring capital gains lowers the tax burden imposed by the capital gains tax.

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Definitions:

Achievement Needs

The drive to pursue and meet goals for personal success and excellence.

Rorschach Ink Blot

A projective psychological test consisting of inkblots presented to a person, who is asked to describe what they see, used to assess personality structure and emotional functioning.

Achievement Motive

A psychological construct that drives an individual to pursue and attain goals.

David McClelland

An American psychologist known for his work on motivation theory, particularly related to achievement, power, and affiliation needs.