Which of the Following Statements Regarding Current U

question 18

Multiple Choice

Which of the following statements regarding current U.S. tax laws is true?

• A)Both dividend payments and interest payments are tax-deductible for a firm.
• B)Only dividend payments are tax deductible; interest is never tax deductible.
• C)Only dividend payments on preferred stock and interest payments on debt are tax-deductible for a firm.
• D)Only interest payments are tax deductible; dividends are paid out of after-tax income.

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Definitions:

Negative Punishment

involves removing a desirable stimulus after a behavior to decrease the likelihood of that behavior occurring again.

Reinforcement

In operant conditioning, any event that strengthens the behavior it follows.

Aversive Event

An unpleasant or painful stimulus that induces changes in behavior through negative reinforcement or punishment.

Inappropriate Behavior

Actions or responses that are unsuitable or not fitting for the context or situation in which they occur.