The Use of a Corporation Is Most Likely to Result

question 133

Multiple Choice

The use of a corporation is most likely to result in a reduction in total taxes if:

• A)The corporation is a public company earning manufacturing income.
• B)The corporation is a CCPC earning dividends.
• C)The corporation is a CCPC earning investment income.
• D)The corporation is a CCPC earning active business income.

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Definitions:

Consumer Goods

Products and services that are consumed or used by individuals, as opposed to those purchased by businesses or industries.

Technological Improvements

Enhancements and innovations in technology that increase productivity, efficiency, or value in processes or products.

Additional Resources

Refers to extra assets or inputs available that can be used to enhance the production or efficiency of something.

Investment

Allocating resources, usually money, with the expectation of generating an income or profit.