Which of the Following Statements Regarding a Non-U

question 61

Multiple Choice

Which of the following statements regarding a non-U.S.person's U.S.tax consequences is true?

• A)Non-U.S.persons are potentially subject to U.S.withholding tax on U.S.-source investment income.
• B)Non-U.S.individuals may be subject to U.S.income tax but non-U.S.corporations are never subject to U.S.income tax.
• C)Non-U.S.persons are only subject to U.S.income or withholding tax if engaged in a U.S.trade or business.
• D)Non-U.S.persons must be physically present in the United States before any U.S.-source income is subject to U.S.income or withholding tax.

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Definitions:

Cash Flow

A measure of the net amount of cash and cash-equivalents being transferred into and out of a business.

Merger

The process by which two or more companies combine their operations, typically to achieve synergies, expand their market reach, or enhance competitiveness.

Stockholders

Individuals or entities that own a share or shares of stock in a corporation, granting them certain rights and a stake in the company's performance.