Which of the Following Is Eligible to Join in a Federal

question 127

Multiple Choice

Which of the following is eligible to join in a Federal consolidated return?

• A)A sole proprietor with annual sales of more than $50 million.
• B)A limited liability company.
• C)A company organized in Germany.
• D)A corporation that operates in seven different U.S. states.
• E)None of the above can join a Federal consolidated group.

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Definitions:

Market Price

The prevailing rate at which a good or service is available for purchase or sale in the public market.

Inelastic

A characteristic of demand or supply that signifies a limited response to changes in prices or other economic factors.

Unit Elastic

A situation where a percentage change in the price of a good results in an equal percentage change in the quantity demanded.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.