Which of the Following Is Not an Effective Strategy for Mitigating

question 1

Multiple Choice

Which of the following is not an effective strategy for mitigating the double tax associated with C corporations?

• A) Borrowing money from a shareholder.
• B) Paying a salary to a shareholder-employee.
• C) Paying fringe benefits to a shareholder-employee.
• D) Leasing property from a shareholder.
• E) All of the choices are effective strategies for mitigating double taxation.

---

Definitions:

Polydnaviruses

Virus particles that consist of multiple circles of dsDNA surrounded by capsid proteins and an envelope; they lack DNA coding for proteins needed for viral replication, but this DNA is provided by ovary cells of the wasps they inhabit.

dsDNA

Double-stranded DNA, which is the typical structure of DNA, consisting of two antiparallel strands that form a double helix.

ssDNA

Single-stranded DNA, which consists of a linear sequence of nucleotides without a complementary strand, often involved in replication and transcription processes.

Nucleic Acid

Macromolecules essential for all known forms of life that store and transfer genetic information, including DNA and RNA.