Both Interest and Dividends Paid by a Corporation Are Deductible

question 116

True/False

Both interest and dividends paid by a corporation are deductible operating expenses,hence they decrease the firm's taxes.

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Definitions:

Condorcet Paradox

A situation in social choice theory where collective preferences can be cyclical, even if the preferences of individual members are not, leading to a lack of transitivity in voting outcomes.

Transitive Preferences

A consistency in choice such that if an individual prefers option A to B and B to C, then they will also prefer A to C.

Arrow's Impossibility Theorem

A principle in social choice theory stating that no rank-order voting system can be designed that always satisfies a set of fair criteria when there are three or more options.

Unanimity

A condition in decision-making processes where all participants must agree on a single course of action.