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If a company undertakes sufficient activities in a particular country, it establishes _____ with that country and becomes liable for filing tax returns in that country.

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Answer: The correct answer is Nexus

Explanation: A government has the power to tax a company provided the company establishes a connection in its area of jurisdiction.

For instance, if a company establishes in Florida, the state of Florida has the power to tax the company on the portion of the business within the state.

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