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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Definitions:

Corn

A cereal plant that yields large kernels on a cob, widely grown for food, fodder, and ethanol production.

Set Point

The target value or condition that a control system aims to maintain through its outputs, such as a specific temperature in a heating system.

Controller's Response

The action or set of actions taken by a controller device in reaction to input signals or conditions, pivotal in systems control and automation.