Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 5, Problem 5CP
Summary Introduction
To discuss: Whether the decision of Federal Crop Insurance Corporation is correct.
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While tax-exempt entities are indeed generally exempt from paying Federal income tax,
they must operate in ways that guarantee that they remain in compliance with tax laws
governing their tax-exempt status. List and explain steps tax-exempt entities must take to
protect their tax-exempt status.
If a member of a limited liability company dissociates from the firm in violation of the
operating agreement, the member can be held liable for any loss to the business
resulting from the withdrawal.
True
False
3. Regulation of private pension plans
Which of the following are provided by federal regulations of private pension plans? Check all that apply.
Insurance of all participants in private defined-benefit plans to receive their benefits upon retirement
Transferability of vested pension funds upon a change of employment
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Insurance of all participants in private defined-contribution plans to receive their benefits upon retirement
Tax benefits only for executive employees
Which of the following are the characteristics of the Pension Benefit Guaranty Corporation (PBGC)? Check all that apply.
Has no regulatory powers
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Affected by economic conditions
Has vast regulatory powers
Chapter 5 Solutions
Smith and Roberson’s Business Law
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