Which Company Has So Successfully Used the Tax System to Avoid

question 29

Multiple Choice

Which company has so successfully used the tax system to avoid paying taxes that it paid no corporate income tax in 2010 on reported profits of $14 billion?

• A) Apple
• B) Berkshire Hathaway
• C) General Electric (GE)
• D) Verizon

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Definitions:

Financing Activities

These are activities that result in changes in the size and composition of the equity capital or borrowings of the entity.

Schedule

A plan that lists events, activities, or tasks along with their intended or expected times and dates.

Investing Activities

Part of a company's cash flow statement that shows the amount of money spent or generated from various investment-related activities in a specific time period.

Financing Activities

Transactions involving issuing debt, equity, and paying dividends as reflected in a company's cash flow statement, indicating the flow of cash between a company and its owners and creditors.