Earnings of C Corporations Can Be

question 309

Multiple Choice

Earnings of C corporations can be

• A) taxed twice if they are distributed as dividends to stockholders.
• B) taxed at twice the going rate of a partnership or sole proprietorship.
• C) taxed by the federal government, but they are exempt from state taxes if the corporation owns any facilities within that state.
• D) taxed the same as a partnership.

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Definitions:

Avoidance-Avoidance Conflict

A psychological conflict that occurs when an individual must choose between two equally negative or undesirable options.

Conflict

A situation or process in which individuals or groups have incompatible goals, interests, or values, leading to disagreements or disputes.

Process

A series of actions or steps taken to achieve a particular end, often involving a methodical or systematic approach.

Interests

Activities, subjects, or pursuits that a person finds enjoyable or thinks are important.