Section 1248 Applies to Which of the Following Transactions

question 40

Multiple Choice

Section 1248 applies to which of the following transactions?

• A)Sale or exchange of stock in a U.S. corporation by a foreign person.
• B)Sale or exchange of stock in a U.S. corporation by a U.S. person.
• C)Sale or exchange of stock in a controlled foreign corporation by its 100% U.S. shareholder.
• D)Sale or exchange of stock in a foreign corporation that has never been a controlled foreign corporation by a U.S. person.
• E)None of the above.

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Definitions:

Group Polarization

The tendency of a group to make decisions that are more extreme than the initial inclination of its members.

Mob Behavior

involves how individuals in a group can often behave differently together than they would alone, typically under the influence of a collective impulse or pressure.

Groupthink

is a psychological phenomenon in which the desire for group conformity leads to irrational or dysfunctional decision-making outcomes.

Unanimity

Complete agreement among all members of a group or committee, often achieved through consensus.