Which of the Following Statements Regarding the Sourcing of Gross

question 46

Multiple Choice

Which of the following statements regarding the sourcing of gross income is true?

• A) Non-U.S. persons not engaged in a U.S. trade or business are indifferent as to whether any of their income is U.S. source.
• B) All income earned by non-U.S. persons not engaged in a U.S. trade or business is treated as foreign source.
• C) U.S.-source income is not subject to withholding so long as such income is not treated as effectively connected with a U.S. trade or business.
• D) Certain U.S.-source investment income earned by non-U.S. persons not engaged in a U.S. trade or business may be subject to a U.S. withholding tax.

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Definitions:

Convergent Validity

The construct validity of a measure is assessed by examining the extent to which scores on the measure are related to scores on other measures of the same construct or similar constructs.

Correlation Coefficient

A statistical measure that calculates the strength and direction of the relationship between two variables.

True Score

An individual’s actual score on a variable being measured, as opposed to the score the individual obtained on the measure itself.

Measurement Error

The degree to which a measurement deviates from the true score value.