6-Which of the following statements most accurately describes the concept of nexus?

Multiple Choice

Nexus is a connection between a company and a state that is sufficient for the state to tax the company.

Nexus is the ability of a state to impose higher taxes on companies doing business in that state but which are headquartered in another state.

Nexus is the ability of a company to do business in a state.

Nexus is the need to allocate income between multiple taxing jurisdictions.