Answer the following statements true (T) or false (F)
1. As noted in Finance in Action, initial public offerings have now increased because long-term results are favored by shareholders and institutional investors.
2. Dividends paid to corporate stockholders have already been taxed once as corporate income.
3. One advantage of the corporate form of organization is that income received by stockholders is not taxable since the corporation already paid taxes on the income distributed.
4. A corporation must have more than 100 stockholders to qualify for Subchapter S designation.
5. Profits of a Subchapter S corporation are taxed at corporate tax rates.
1. FALSE
2. TRUE
3. FALSE
4. FALSE
5. FALSE
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The binomial probability distribution is used with a(n) _____ random variable.
A. continuous B. discrete C. uniform D. intermittent
Which of the following is a true statement?
a. SFAC No. 5 makes clear that the concepts discussed in the conceptual framework apply to other means of disclosure in addition to financial statements. b. SFAC No. 5 appears to deny one of the main tenets of the efficient markets hypothesis, that disclosure outside of the body of financial statements is as effective as disclosure within statements themselves. c. SFAC No. 5 made a clear attempt to resolve the issues of recognition and measurement. d. SFAC No. 5 was successful because it addressed measurement prior to discussing recognition.
Both Schedules M-1 and M-3 require taxpayers to identify book-tax differences as either temporary or permanent.
Answer the following statement true (T) or false (F)
Behaviors that intentionally disadvantage other individuals rather than the larger organization are referred to as
A. political deviance. B. personal aggression. C. property deviance. D. wasting resources. E. substance abuse.