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# Federal law prohibits businesses from reimbursing any employ

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Federal law prohibits businesses from reimbursing any employ [#permalink]  16 Jul 2018, 00:21
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Question Stats:

56% (01:38) correct 43% (01:54) wrong based on 32 sessions
Federal law prohibits businesses from reimbursing any employees for the cost of owning and operating a private aircraft that is used for business purposes. Thus, many companies in the United States themselves purchase private aircraft. The vast majority of the business aviation fleet is owned by small and mid-size businesses, and flights are strictly for business purposes, with mostly mid-level employees on board. These companies and their boards of directors are in full compliance with the law and with what is best for their businesses.

Which of the following can be most properly inferred from the statements above?

(A) The federal law in question costs businesses money.
(B) Most executives would rather fly on company-owned planes than on commercial airlines.
(C) Large businesses usually have their executives fly first or business class on commercial flights.
(D) Upper-level executives are less often in compliance with the law.
(E) By not receiving any reimbursement for these flights, the mid-level executives on board are complying with the law.

Kudos for R.A.E
[Reveal] Spoiler: OA

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Re: Federal law prohibits businesses from reimbursing any employ [#permalink]  19 Jan 2019, 20:22
Re: Federal law prohibits businesses from reimbursing any employ   [#permalink] 19 Jan 2019, 20:22
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