Which of the Following Statements Is CORRECT

question 78

Multiple Choice

Which of the following statements is CORRECT?

• A) Since companies can deduct dividends paid but not interest paid, our tax system favors the use of equity financing over debt financing, and this causes companies' debt ratios to be lower than they would be if interest and dividends were both deductible.
• B) Interest paid to an individual is counted as income for federal tax purposes and taxed at the individual's regular tax rate, which in 2013 could go up to 39.6%, but qualified dividends received were taxed at a maximum tax rate of 15% for individuals earning less than $400,000 and married taxpayers filing jointly earning less than $450,000.
• C) The maximum federal tax rate on corporate income in 2013 was 50%.
• D) Corporations obtain capital for use in their operations by borrowing and by raising equity capital, either by selling new common stock or by retaining earnings. The cost of debt capital is the interest paid on the debt, and the cost of the equity is the dividends paid on the stock. Both of these costs are deductible from income when calculating income for tax purposes.
• E) The maximum federal tax rate on personal income in 2013 was 50%.

Explain the processes involved in developing and extinguishing conditioned responses.

Demonstrate knowledge of the historical context and significance of classical conditioning experiments.

Recognize the application of classical conditioning principles in behavior modification.

Understand how to conduct a break-even analysis for a business plan, including the consideration of fixed and variable costs.

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Definitions:

Personal Space

The physical space immediately surrounding someone, into which any encroachment feels uncomfortable to most people.

Feedback

Information provided as a response to actions or performances, aimed at improving or maintaining the quality of future outcomes.

"I Don't Feel Good"

A general expression used by individuals to convey that they are experiencing discomfort or feeling unwell without specifying a particular symptom or condition.

Clarification Technique

A communication method used to clear up misunderstandings by restating an unclear or ambiguous message to ensure understanding.