Consider the Following Methods of Taxing a Corporation's Income

question 81

Multiple Choice

Consider the following methods of taxing a corporation's income:
A.A flat tax, as opposed to a progressive tax, is levied on corporate profits.
B.A system whereby a corporation calculates its annual profit and notifies each shareholder of her portion of the profits.The shareholder would then be required to include this amount as taxable income for her personal income tax.The corporation does not pay a tax.
C.A system where the federal government continues to tax corporate income through the corporate income tax but allows individual taxpayers to receive, tax free, corporate dividends and capital gains.
Which of the methods above would avoid double taxation?

• A)a, b, and c
• B)a and b only
• C)a and c only
• D)b and c only

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Definitions:

Strategic Contingencies

Critical events or factors that significantly influence the success of strategies or decision-making processes within organizations.

Source Of Uncertainty

Any factor or condition that creates doubt or ambiguity in decision-making or planning.

Defensive Behaviour

Actions or reactions aimed at protecting oneself from perceived threats, criticism, or blame, often at the expense of productive communication.

Overconforming

Exceeding the norms or standards in a given context, often to garner approval or prevent criticism.