When Does the Double Taxation Problem Faced by Corporations Exist

question 103

Multiple Choice

When does the double taxation problem faced by corporations exist?

• A) Whenever a corporation earns a profit, pays taxes on that profit, and then pays interest to its bondholders.
• B) Whenever a corporation earns a profit, pays taxes on that profit, and then pays dividends to its stockholders who pay personal taxes.
• C) Whenever a corporation earns a profit and pays taxes on that profit.
• D) Whenever a corporation earns a profit, pays taxes on that profit, and then pays dividends to its tax-exempt shareholders.
• E) Whenever stockholders are paid a dividend and are taxed on that dividend income.

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Definitions:

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Austrian neurologist Sigmund Freud originated psychoanalysis, a diagnostic technique for addressing mental disorders through conversation between a psychoanalyst and their patient.

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