Which of the Following Is Not a Consequence of the Double

question 150

Multiple Choice

Which of the following is not a consequence of the double tax on dividends?

• A) Corporations have an incentive to retain earnings and structure distributions to avoid dividend treatment.
• B) Corporations have an incentive to invest in noncorporate rather than corporate businesses.
• C) The cost of capital for corporate investments is increased.
• D) Corporations have an incentive to finance operations with debt rather than equity.
• E) All of the above are consequences of the double tax on dividends.

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Definitions:

Multimorbidity

The coexistence of two or more chronic conditions in the same individual.

Socioeconomic Deprivation

A condition characterized by a lack of income, resources, and access to basic needs and services that are necessary for an acceptable standard of living.

Cross-sectional Study

A type of observational study that analyzes data from a population, or a representative subset, at a specific point in time.

Ecologic

Relates to the study of organisms' interactions with each other and their environments.