In Which of the Following Independent Situations Would Slane, a Foreign

question 108

Multiple Choice

In which of the following independent situations would Slane, a foreign corporation, be classified as a controlled foreign corporation? The Slane stock is directly owned 12% by Jen, 10% by Kathy, 12% by Leslie, 10% by David, 8% by Ben, and 48% by Mike.

• A) Jen, Kathy, Leslie, David, Ben, and Mike are all U.S. citizens.
• B) Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. David is married to Kathy. Mike is a foreign resident and citizen.
• C) Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. Ben is Mike's son. Mike is a foreign resident and citizen.
• D) Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. Mike is a foreign resident and citizen.

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Definitions:

Flooding

A behavioral therapy technique intended to treat anxiety by exposing patients to their fear-inducing stimuli in a controlled environment.

Fear-evoking Stimuli

Environmental or internal triggers that provoke a fear response, activating the body’s fight or flight reaction.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through systematic exposure and other techniques.

Observational Learning

Acquiring knowledge by watching others' actions and the results of those actions.