Answer:
A) A company shifts their headquarters to a foreign country.
Explanation:
<em>If a corporation restructure itself to replace the current parent with foreign parent so that the current company becomes a subsidiary of the foreign parent, it is known as tax inversion. </em>
Shifting the company to foreign country also moves the tax residence to the foreign country. Companies take advantage of the existing loopholes to avoid tax, It is different from tax evasion as in tax evasion the companies wilfully avoids paying taxes.
In US various legislation and regulation have been enacted by the Congress and Obama administration to curb such tax inversion. Inversions can be considered legal as they do not violate the relevant tax rules, but it leads to losses for the government.
Answer: <em>True</em>
Explanation:
MNC is abbreviated as multinational corporation also referred to as the worldwide enterprise is known as the amalgamated organization which owns or has control over the production of commodities and services in an nation other than its domestic ground. A MNC can further be referred to as or known as the transnational enterprise or multinational enterprise.
1. A credit card lets you borrow money (up to the given credit limit) and pay it back as and when due. When you make a purchase, the amount will be deducted from your credit limit and when you pay it back, the payment will be added back to your credit limit.
Explanation:
It is called the law of demand and supply whereby when the supply of commodity increases, the need reduces. The market becomes flooded with the items while the number of customers is constant. Moreover, when the supply of a good diminishes its demand goes up.
