Which of the following statements concerning the unitary concept is correct?
A)All states utilize the same definition in determining whether a group of corporations constitutes a unitary business.
B)The unitary concept applies only where a business consists of divisions of a single corporation, not where a business is operated through multiple corporations.
C)It is unconstitutional to include a foreign subsidiary in a unitary group.
D)The "operational interdependency" test looks to the extent to which common administrative functions exist to determine whether a unitary business exists.
E)The "three unities" test looks to unity of ownership, unity of operation, and unity of use to determine whether a unitary business exists.

Question

Quizplus · Accepted Answer

The "three unities" test looks to unity of ownership, unity of operation, and unity of use to determine whether a group of corporations constitutes a unitary business. Option A is incorrect as the definition of unitary business varies among states. Option B is incorrect as the unitary concept can apply to businesses operated through multiple corporations. Option C is incorrect as including a foreign subsidiary in a unitary group is not necessarily unconstitutional. Option D is incorrect as the "operational interdependency" test assesses whether activities of different parts of a business are interdependent, not whether there are common administrative functions.

Which of the Following Statements Concerning the Unitary Concept Is