Identify Which of the Following Statements Is True

question 71

Multiple Choice

Identify which of the following statements is true.

• A)C corporation operating losses are deductible by the individual shareholders.
• B)If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur.
• C)Capital losses incurred by a C corporation can be used to offset the corporation's ordinary income.
• D)All of the above are false.

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Definitions:

Congressional Review

A process by which Congress can nullify new federal regulations by passing a joint resolution of disapproval.

Captured Agency

A regulatory agency that, instead of serving the public interest, acts in favor of the industries it is supposed to regulate.

Hybrid Rules

Regulations or guidelines that blend elements from different sources or systems, often applied in complex or interdisciplinary fields.

Administrative Procedures Act

A United States federal statute that governs the way administrative agencies of the federal government may propose and establish regulations.