Which of the Following Statements About the Use of a Corporation

question 28

Multiple Choice

Which of the following statements about the use of a corporation is correct?

• A)Use of a corporation will always result in the deferral of taxes.
• B)Use of a corporation can result in a tax saving.
• C)Use of a corporation is more desirable in a province that has low tax rates on individu- als.
• D)Use of a corporation is more desirable in a province that has a low dividend tax credit.

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Definitions:

Budget Constraint

The limitation on the consumption choices of an individual or family based on their income and the prices of goods and services.

Indifference Curve

A graph representing combinations of goods or services among which an individual is equally satisfied.

Equally Affordable

A condition where different goods or services have the same cost in terms of their value to a consumer, making them equally desirable.

Indifference Curves

Graphical representations in economics showing different combinations of two goods among which a consumer is indifferent in terms of utility or satisfaction.