Which of the Following Statements Describes the Company Characteristic Termed

question 97

Multiple Choice

Which of the following statements describes the company characteristic termed double taxation?

• A)Companies pay income tax on company earnings, and shareholders pay personal income tax on company dividends and gains from sale of shares.
• B)The liabilities of the company cannot be extended to the personal assets of the shareholder.
• C)Company shares can be readily bought and sold by investors on the open market.
• D)Shareholders are not authorised to sign contracts or make business commitments on behalf of the company.