In Which of the Following Independent Situations Would Slane, a Foreign

question 108

Multiple Choice

In which of the following independent situations would Slane, a foreign corporation, be classified as a controlled foreign corporation? The Slane stock is directly owned 12% by Jen, 10% by Kathy, 12% by Leslie, 10% by David, 8% by Ben, and 48% by Mike.

• A) Jen, Kathy, Leslie, David, Ben, and Mike are all U.S. citizens.
• B) Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. David is married to Kathy. Mike is a foreign resident and citizen.
• C) Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. Ben is Mike's son. Mike is a foreign resident and citizen.
• D) Jen, Kathy, Leslie, David, and Ben are all U.S. citizens. Mike is a foreign resident and citizen.

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Definitions:

Real Gross Domestic Product

Real Gross Domestic Product (Real GDP) measures the value of all goods and services produced by an economy over a specific period, adjusted for inflation, reflecting the actual growth in economic output.

Price Level

An average of the current prices of goods and services in an economy, which can fluctuate with changes in production, demand, and inflation.

Laissez-Faire

An economic philosophy of free-market capitalism that opposes government intervention.

Great Depression

A severe worldwide economic downturn that took place during the 1930s.