Answer: The statements
A. A corporation bears the burden of proving that its earnings are not being accumulated to avoid income taxes.
B. To avoid the accumulated earnings tax, a corporation needs to have a definite plan for expending the accumulated earnings.
C. In practice, the accumulated earnings tax applies only to closely held corporations.
<u>Are TRUE.</u>
Explanation: To avoid paying the tax on accumulated profits, the company has the obligation to show that it does not accumulate profits, in case of not being able to prove it, it must pay tax.
It is optimal for companies to have a defined plan to spend the accumulated profits on profitable projects and not waste the profits just to avoid paying tax.
Answer : A Defensive stock
Companies that produce goods that are in constant demand are known as defensive companies and their shares are known as defensive stocks.
Since defensive companies deliver stable earnings and dividends even in a recession, the stocks of such companies will most likely suffer the least amount of depreciation in a major recession.
Answer: secondary data
Explanation:
The type of data above is refered to as a secondary data. Secondary data simply refers to the data that have already been gotten or collected from the past.
Unlike the primary data, which is collected by the individual, secondary data have already been done in the past. Since he first reviewed existing data on seasonal spending collected by the government, this is a secondary data
JP Morgan was a captain of Industry.