Match the Definition with the Correct Term

question 12

Multiple Choice

Match the definition with the correct term.
-Activity that creates the potential for effectively connected income.

• A)Expatriate
• B)Resident
• C)Nonresident alien
• D)U.S. trade or business
• E)Effectively connected income

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Definitions:

Building Expansion

An increase in the physical size, capacity or significant improvement of a building facility.

Bond Repayments

The process of paying back the principal and interest on bonds, which are forms of long-term debt issued by corporations and governments.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.

Paid-in Capital

Funds that are contributed to a corporation by investors in exchange for the corporation's stock, representing the funds raised by the company from equity, not from ongoing operations.