If Both Dividends and Capital Gains Are Taxed at the Same

question 65

Multiple Choice

If both dividends and capital gains are taxed at the same ordinary income tax rate, the effect of tax is different because:

• A) Capital gains are actually taxed, while dividends are taxed on paper only
• B) Dividends are taxed when distributed while capital gains are deferred until the stock is sold
• C) Both dividends and capital gains are taxed every year
• D) Both A and C

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Definitions:

Chalalán Ecolodge

An eco-tourism project located in the Madidi National Park in Bolivia, known for its community-based sustainable development and biodiversity conservation.

Commercial Venture

An enterprise undertaken with the aim of achieving financial profit, often involving the buying and selling of goods and services.

Ecotourism

A form of sustainable travel to natural areas that aims to conserve the environment, respect the local culture, and promote economic development for local communities.

Industrial Market Exchange

Industrial market exchange refers to the buying and selling activities and transactions between businesses, especially those involving raw materials, components, and goods used in the production of other products or services.