The tax disadvantages of the C corporation form of doing business include "double taxation." What is meant by the term "double taxation" as used in this context?
What will be an ideal response?
Double taxation occurs when corporate earnings are distributed as dividends to the shareholders. Since the corporate earnings have already been taxed at the corporate level, the shareholders must pay personal income tax as a second tax when the earnings are distributed as dividends. Double taxation can also occur when the stock is sold or exchanged and the portion of the gain attributable to the accumulated earnings is taxed as capital gain.
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Which of the following guidelines should you follow after a presentation??
A) Encourage the audience to ask questions.? B) ?Always distribute handouts only at the end of the presentation. C) ?Avoid posting handouts to web pages. D) ?Do not paraphrase questions asked by the audience.
Which of the following is a reason for a firm to underprice new issues?
A) When the market is in equilibrium, additional demand for shares can be achieved only at a higher price. B) When additional shares are issued, each share's percent of ownership in a firm is diluted, thereby justifying a higher share value. C) When additional shares are issued, each share's percent of ownership in a firm is concentrated, thereby justifying a lower share value. D) When the market is in equilibrium, additional demand for shares can be achieved only at a lower price.
Disparate treatment is (are)
a. intentional discrimination against a protected group of persons, such as blacks or women. b. practices that have an unintentional, discriminatory effect on a class of people, protected under Title VII. c. programs that attempt to "make up" for past patterns of discrimination. d. workers giving up the right to sue in court for on-the-job injuries.
If the firm was to shift $3,000 of current assets to fixed assets, the firm's net working capital would ________, and the risk of insolvency would ________, respectively. (See Table 14.2)
A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase