What Amount of Accumulated Earnings of a Service Type Corporation

question 49

Multiple Choice

What amount of accumulated earnings of a service type corporation is considered within the reasonable needs of a business without the corporation having to show a bona fide business reason for the accumulation?

• A)$150,000 or less.
• B)$200,000 or less.
• C)$250,000 or less.
• D)$300,000 or less.
• E)None of the above.

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Definitions:

Voluntary Turnover

Occurs when employees choose to leave their jobs of their own accord, rather than being fired or laid off.

External Turnover

The process of employees leaving an organization and being replaced by new hires from outside the organization, often monitored to assess the health of a company's workforce strategies.

Progressive Discipline

A process used by organizations to address employee performance issues or misconduct through a series of escalating steps, starting with counseling and leading up to termination if necessary.