If a Corporation Has After-Tax Profits of $360,000, and Elects

question 193

True/False

If a corporation has after-tax profits of $360,000, and elects to distribute this amount in the form of dividends to its stockholders, these distributions are free and clear of taxes because the corporation paid taxes on this amount prior to distribution.

---

Definitions:

Learning Principle

A foundational concept or guideline that informs the methods and strategies used for effective learning and knowledge acquisition.

Transference

In psychology, the process by which emotions are passed from one person to another; in psychoanalysis, it refers to the redirection of feelings from one person to another.

Relevance

The degree to which something is related or useful to what is happening or being talked about.

Courtesy Interviews

A type of interview conducted more out of politeness or to gather information rather than for the purpose of hiring.