Question

A controlled ______ ________is a an entity incorporated under foreign law in which U.S. shareholders own more than 50% of the voting stock on any day during the year.

a) Corporation
b) Foreign Personal Holding Company (FPFC)
c) Business Trust
d) Limited Liability Company (LLC)

Answer 1

A controlled corporation is an entity incorporated under foreign law in which U.S. shareholders own more than 50% of the voting stock. Corporations provide limited liability for the company's debt but share in its profits and losses.

Step-by-step explanation:

A controlled corporation is a an entity incorporated under foreign law in which U.S. shareholders own more than 50% of the voting stock on any day during the year. Corporations are business structures that provide limited liability for the company's debt but share in its profits and losses. Those who buy the stock become the firm's owners, or shareholders, as stock represents firm ownership.