Identify which of the following statements is true.
A. When a controlled foreign corporation (CFC) earns Subpart F income, such income is considered to be a constructive distribution to the CFC's U.S. shareholders on the last day of the CFC's tax year, or the last day on which CFC status is retained.
B. Under the Subpart F rules, controlled foreign corporations (CFCs) are required to distribute a certain portion of their income as dividends to their U.S. shareholders.
C. For a foreign corporation to be a controlled foreign corporation (CFC), more than 40% of its voting stock, or more than 40% of the value of its outstanding stock, must be owned by U.S. shareholders on any day of the corporation's tax year.
D. All of the above are true.
Answer: A
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Identify the correct statement regarding entrepreneurship.
A. Entrepreneurs experience stress, but they also have high job satisfaction. B. If an entrepreneur is talented, he or she will quickly succeed. C. Entrepreneurs are their own bosses and independent. D. Entrepreneurs are gamblers. E. Entrepreneurs seek power and control over others.
In order to shorten the financing period of the cash conversion cycle, a manager can speed up the collection period or slow down the payable cycle
Indicate whether the statement is true or false.
A ________ transaction in the foreign exchange market requires an almost immediate delivery (typically within two days) of foreign exchange
A) spot B) forward C) futures D) none of the above
Allison's portfolio has an expected return of 14% and a beta of 1.37. Brianna's portfolio has an expected rate of return of 11% and a beta of 1. The risk-free rate is 3% and the expected rate of return on the market is 12%
According to the Jensen's measure, A) Allison has the better portfolio. B) Brianna has the better portfolio. C) the portfolios are equally desirable. D) the answer depends on Allison and Brianna's risk tolerance.