Identify Which of the Following Statements Is True

question 23

Multiple Choice

Identify which of the following statements is true.

• A) If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur.
• B) C corporation operating losses are deductible by the individual shareholders.
• 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:

Acromegaly

A disorder in which too much growth hormone is produced in adults.

Gigantism

A condition in which too much growth hormone is produced in childhood, resulting in an abnormally increased stature.

Dwarfism

A condition in which too little growth hormone is produced, resulting in an abnormally small stature.

Cretinism

A condition arising from a severe deficiency of thyroid hormone in infants or young children, leading to stunted physical and mental growth.