Which of the Following Is Most Effective in Mitigating the Double

question 43

Multiple Choice

Which of the following is most effective in mitigating the double tax?

• A) Shift income from high tax rate corporations to low tax rate shareholders.
• B) Shift income from high tax rate shareholders to low tax rate corporations.
• C) Shift income from low tax rate corporations to high tax rate shareholders.
• D) Shift income from low tax rate shareholders to high tax rate corporations.

---

Definitions:

Present Value

The present worth of a future amount of money or series of monetary inflows, considering a certain rate of interest.

Present Value Amount

The current value of a future sum of money or stream of cash flows given a specified rate of return, important in discounting and investment decisions.

Rate of Earnings

A measure of profitability that indicates how much profits a company generates from its operations.

Present Value Factor

A factor used to calculate the present value of a future amount of money or stream of payments, considering a specific interest rate.