A Corporation Cannot Reasonably Accumulate Earnings to

question 38

Multiple Choice

A corporation cannot reasonably accumulate earnings to

• A)protect against pending litigation.
• B)fund an employee retirement plan.
• C)self-insure.
• D)redeem stock of an elderly shareholder where such accumulation occurs prior to the shareholder's death.

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Definitions:

Duty

A moral or legal obligation to perform or refrain from performing a certain action.

Rescind

To revoke, cancel, or repeal a contract, agreement, or law, making it as though it never existed.

Tenant

An individual or entity that occupies property or land rented from a landlord or owner.

Overcharges

The act of charging someone more than the fair or agreed upon price for goods or services.