Which of the Following Are "Reasonable Needs" That Will Help

question 77

Multiple Choice

Which of the following are "reasonable needs" that will help a corporation in avoiding the accumulated earnings tax?

• A)The corporation is opening locations in neighboring cities.
• B)Funds are used to make a loan to a major shareholder.
• C)The corporation uses funds for the redemption of the stock of a disgruntled shareholder.
• D)Not making distributions helps to minimize the combined shareholder/corporation tax liabilities.
• E)All of the above.

---

Definitions:

Marcia's Theory

A psychological theory by James Marcia that categorizes an individual's identity development during adolescence into four statuses based on exploration and commitment.

Commitment

A pledge or promise to do something, often requiring dedication and perseverance, in personal or professional contexts.

Preconventional Level

A stage in Kohlberg's theory of moral development, where an individual's moral reasoning is based primarily on the consequences of actions and on receiving rewards or avoiding punishment.

Moral Development

The method by which people cultivate appropriate attitudes and actions towards others in a community, in accordance with social and cultural standards, regulations, and legislation.