Which of the Below Statements Is TRUE

question 63

Multiple Choice

Which of the below statements is TRUE?

• A) Dividends (which are typically in the form of stock) are are distributions made by a corporation to its owners that represent a return on their investment.
• B) Dividends paid to common stockholders are not legal obligations of a corporation and some corporations do not pay cash dividends.
• C) At one time, dividend payments were taxed solely as ordinary income. Ordinary income means that the tax rate applicable is based on the investor's average tax bracket.
• D) Depending on the individual's income tax rate, preferential dividends are taxed at either 5% or 15%.

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Definitions:

Deviant

Behaviors or actions that deviate from societal norms or standards, often leading to negative judgment or sanctions.

Dysfunction

Abnormal or impaired functioning in individuals or systems, often leading to distress or conflict.

General Paresis

A neurosyphilis manifestation resulting in progressive dementia and physical disability due to brain damage.

Syphilis

A sexually transmitted infection caused by the bacterium Treponema pallidum, known for its varying stages and potential for serious health complications if left untreated.