Which of the Following Statements Is CORRECT

question 108

Multiple Choice

Which of the following statements is CORRECT?

• A) Retained earnings,as reported on the balance sheet,represent the amount of cash a company has available to pay out as dividends to shareholders.
• B) 70% of the interest received by corporations is excluded from taxable income.
• C) 70% of the dividends received by corporations is excluded from taxable income.
• D) Because taxes on long-term capital gains are not paid until the gain is realized,investors must pay the top individual tax rate on that gain.
• E) The corporate tax system favors equity financing,as dividends paid are deductible from corporate taxes.

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Definitions:

Matrix Boss

A manager in a matrix organization who shares responsibility for overseeing the work of an employee with another manager.

Strategic Planning

A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Labor Surplus

A situation where the supply of labor exceeds the demand for it, often leading to unemployment or underemployment.

Compensation Costs

Expenses related to paying employees, including wages, salaries, bonuses, benefits, and any other form of remuneration.