An Owner-Manager Can Generally Choose Whether He Wishes to Receive

question 132

Multiple Choice

An owner-manager can generally choose whether he wishes to receive compensation in the form of dividends or, alternatively in the form of salary.All other things being equal which of the following would encourage the use of dividends?

• A)A desire to make contributions to an RRSP.
• B)A low provincial dividend tax credit.
• C)A desire to eliminate a large CNIL balance.
• D)A high provincial corporate tax rate.

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