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.

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Definitions:

MMPI-2

The Minnesota Multiphasic Personality Inventory-2, a widely used psychological assessment tool for diagnosing mental health disorders.

Standardized Tests

Tests that are administered and scored in a consistent, or "standard", manner which are used to measure proficiency in various subjects.

Five-Factor Model

A widely accepted framework in psychology that describes personality using five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality

A mixture of feelings, thoughts, and actions that are unique to each individual, differentiating one from another.