After a Business Meeting with a Prospective Client Holly Took

question 26

Multiple Choice

After a business meeting with a prospective client Holly took the client to dinner and the theatre.Holly paid $290 for the meal and $250 for the theatre tickets,amounts that were reasonable under the circumstances.What amount of these expenditures can Holly deduct as a business expense?

• A) $540
• B) $415
• C) $270
• D) None unless Holly discussed business with the client during the meal and the entertainment.
• E) None - the meals and entertainment are not deductible except during travel.

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Definitions:

Public Figure

An individual who is widely recognized by the public, often due to their role in public or social activities, making them subject to increased scrutiny by the media.

Actual Malice

A standard of proof in defamation law requiring the plaintiff to show that the defendant knew the statement was false or acted with reckless disregard of its truth or falsity.

Libel

A form of defamation expressed by print, writing, pictures, or signs that injures a person's reputation.

Proximate Cause

The legal principle that determines the primary cause of damage or injury, which must be closely related (both in time and nature) to the harm in a liability lawsuit.