In the Case of a Zero Interest Below-Market Loan by a Corporation

question 89

Essay

In the case of a zero interest below-market loan by a corporation to a shareholder-employee, what difference does it make to the corporation and the shareholder whether the loan is characterized as a corporation's loan to its shareholder or a corporation's loan to its employee?

---

Definitions:

Signature Line

A designated space in a document where an individual signs to indicate agreement or acknowledgment.

Subject Line

The part of an email or message that summarizes the content or purpose, visible before the recipient opens the message.

Communications Protocol

a set of rules and standards designed to enable communication between electronic devices.

SMTP

Simple Mail Transfer Protocol, a protocol for sending emails across the internet.