A Foreign Corporation Is Owned by Five Unrelated Individuals

question 51

Multiple Choice

A foreign corporation is owned by five unrelated individuals. John, Sam, and David are U.S. citizens who own 30%, 18% and 9%, respectively, of the foreign corporation's single class of stock. Alberto and Manuel are nonresident aliens who own 37% and 6%, respectively, of the foreign corporation's stock. Which of the following statements is true?

• A)There are three "U.S. shareholders" and the foreign corporation is a controlled foreign corporation (CFC).
• B)There are three "U.S. shareholders" and the foreign corporation is not a controlled foreign corporation (CFC).
• C)There are two "U.S. shareholders" and the foreign corporation is not a controlled foreign corporation (CFC).
• D)There are two "U.S. shareholders" and the foreign corporation is a controlled foreign corporation (CFC).

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Definitions:

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in decision making, social behavior, and personality expression.

Amygdala

A part of the brain's limbic system, involved in emotion regulation, especially fear, and memory processing.

Language

A system of spoken, written, or signed symbols through which humans communicate thoughts, feelings, ideas, and information.

Myelination

The process of forming a myelin sheath around the nerves, which increases the speed at which electrical impulses propagate along the nerve cells.