Which Factor Would Most Likely Cause a Firm to Choose

question 21

Multiple Choice

Which factor would most likely cause a firm to choose the carryforward option for an NOL?

• A) Expectations of lower earnings in the future relative to the past
• B) Expectations of higher earnings in the future relative to the past
• C) Expectations of lower tax rates in the future relative to the past
• D) Expectations of higher tax rates in the future relative to the past

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Definitions:

Age

The length of time that an individual or entity has existed, typically measured in years.

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Pearson Correlation Coefficient

A statistical measure of the linear correlation between two variables, ranging from -1 to 1, where 1 indicates a perfect positive linear relationship.