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:

Body Oxidizes

The process by which the body metabolizes substances to produce energy, involving the transfer of electrons to oxygen.

NADH Molecules

Nicotinamide adenine dinucleotide (NADH) is a coenzyme involved in redox reactions, carrying electrons from one reaction to another in cellular respiration.

Electron-Transport Chain

A sequence of compounds facilitating electron flow from electron-donating entities to electron-accepting entities via redox processes, concurrently coupling this flow with proton (H+ ions) migration across a membrane.

ATP Molecules

Adenosine Triphosphate molecules, the primary energy carriers in cells.