Which of the Following Statements Regarding a Non-U

question 47

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 may be 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:

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen.

Profit-maximizing

A firm's strategy or approach to achieve the highest possible profit from its operations, focusing on optimizing production and sales.

Accounting Costs

The recorded expenses in the financial statements of a company, including both fixed and variable costs incurred during business operations.

Sunk Costs

Costs that have already been incurred and cannot be recovered.