Which of the Following Is True of a Close Corporation

question 9

Multiple Choice

Which of the following is true of a close corporation?

• A) Its profits cannot be reported by stock holders as income in their personal income tax returns.
• B) It is also known as a closely held corporation.
• C) It enables a large number of people to own stock.
• D) Its profits are usually taxed twice.

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Definitions:

Repeated Games

A game played by the same participants multiple times, allowing for the development of strategies based on previous outcomes.

Net Payoffs

The final amount of profit or loss after all gains and costs have been accounted for in a financial transaction or decision.

Oligopolist

A firm that is part of an industry where a small number of entities dominate the market, often leading to limited competition.