Corporate Profits Are

question 88

Multiple Choice

Corporate profits are

• A) taxed at too low a rate.
• B) taxed only when a stockholder sells his or her shares of stock.
• C) taxed twice-once by the corporate tax system, and again by personal tax system when they are paid to stockholders as dividends.
• D) taxed three times-once by the corporate tax system, again by the personal tax system, and again as capital gains.

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Definitions:

Drive-Reduction Theory

A theory suggesting that behavior is driven by the need to reduce drives such as hunger, which creates a state of tension.

Physiological Need

a basic bodily requirement that humans need to survive, like food, water, and shelter.

Homeostasis

The self-regulating process by which biological systems maintain stability while adjusting to changing external conditions.

Hungry Person

An individual experiencing the physical sensation of needing or wanting food, which may affect their mood and behavior.