Which of the Following Is Not a Consequence of the Double

question 118

Multiple Choice

Which of the following is not a consequence of the double tax on dividends?

• A) Corporations have an incentive to retain earnings and structure distributions to avoid dividend treatment.
• B) Corporations have an incentive to invest in noncorporate rather than corporate businesses.
• C) The cost of capital for corporate investments is increased.
• D) Corporations have an incentive to finance operations with debt rather than equity.
• E) All of these are consequences of the double tax on dividends.

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Definitions:

Commitment

The state or quality of being dedicated to a cause, activity, or relationship, often requiring time, effort, and loyalty.

Conflict

A perceived incompatibility of actions, goals, or ideas.

Insecure Attachment

A type of attachment style where individuals may show anxiety or avoidance in close relationships, stemming from early interactions with caregivers.

Avoidant Attachment

A type of insecure attachment style characterized by difficulty in establishing close emotional relationships, preferring independence over seeking comfort from others.