There Is No Limit on the Amount of Passive Investment

question 45

True/False

There is no limit on the amount of passive investment income that an S corporation can earn during the year.

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Definitions:

Transactions

Financial activities involving the exchange of goods, services, or funds between two or more parties.

International Exchange

The system or process through which different currencies are traded, affecting global trade and economics.

Investment Income

Income earned from various forms of investments, including dividends, interest payments, and profits from the sale of assets or securities.

Creditor Nation

A country that has more investments abroad than other countries have within its borders, making it a net lender to the rest of the world.