Owners of Smaller Companies Often Set Up Related Entities to Transact

question 111

Multiple Choice

Owners of smaller companies often set up related entities to transact with in order to do which of the following?

• A)hide the transaction from the shareholders.
• B)steal assets from the small company.
• C)derive tax benefits.
• D)fraudulently create a unconsolidated entity.

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Definitions:

Abduct

To move away from the midline of the body or from another part; often used in the context of muscle movement or the abduction of a limb.

Silent Letter

A letter that is present in the spelling of a word but not pronounced when the word is spoken.

Initialism

A type of acronym formed from the initial letters of a phrase, where each letter is pronounced separately, such as FBI.

Combining Form

A form of a word that combines with another form to create a new word or term, often used in medical terminology.