Christian, the President and Sole Shareholder of Venture Corporation, Is

question 80

Essay

Christian, the president and sole shareholder of Venture Corporation, is paid an annual salary of $150,000. Christian would like to draw additional funds from the corporation but is concerned that increased salary might cause the IRS to contend his salary is unreasonable. Further, Christian does not want the corporation to pay any dividends. He would like to contribute $40,000 to his alma mater to establish scholarships for needy students. If Christian makes a pledge to the university to provide $40,000 for scholarships, would there be a problem if Venture Corporation paid the pledge on his behalf? Explain.

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Definitions:

Seatbelt

A safety device fitted in vehicles, designed to secure the occupant against harmful movement that may result from sudden stops or impacts.

Skinner Box

Is a controlled environment used to observe and study the behavior of animals, especially in experiments involving operant conditioning.

Variable Ratio Schedule

A reinforcement schedule in operant conditioning where rewards are provided after an unpredictable number of responses, promoting high and steady rates of behavior.

Positive Reinforcement

A technique in behavior modification that involves providing a reward following a desired behavior to increase the likelihood of its recurrence.