Identify Which of the Following Statements Is True

question 70

Multiple Choice

Identify which of the following statements is true.

• A) Loans made to shareholders in proportion to their stock ownership in the corporation is evidence that the loans are disguised dividends.
• B) If the shareholder can elect to receive distributing corporation stock or money, the receipt of distributing corporation stock will be a taxable dividend.
• C) Corporate payments for the shareholder's benefit may be a taxable dividend.
• D) All of the above are true.

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Definitions:

Economic Problem

The fundamental issue arising from the scarcity of resources relative to human wants, necessitating choices and prioritization in the allocation of resources.

Policy Change

Alterations or adjustments made by government or organizations in existing policies to address new issues or improve outcomes.

Public Reaction

The response of the general public to a particular action, event, or situation, often influencing public opinion and policy.

Passive Approach

A strategy or method in various contexts, including investing or policy-making, that involves minimal or no intervention.