Author Question: In order to qualify for the favorable tax treatment of a Foreign Sales Corporation, a U.S. firm must ... (Read 35 times)

james0929 · **on:** Jun 24, 2018

In order to qualify for the favorable tax treatment of a Foreign Sales Corporation, a U.S. firm must meet all of the following tests, except:
A) at least one director must be a nonresident of the U.S.
B) its income must be derived from qualified export activity such as the sale of goods abroad.
C) management must be outside the U.S.
D) none of the income may be repatriated to the United States.
E)the FSC must participate in soliciting, negotiating, or contracting with a foreign buyer.

Question 2

A right is defined as:
A) an obligation of law imposed to perform an act.
B) a legal capacity to require another party to perform an action.
C) any written promise.
D) -a political power to do the right thing.