Which One of These Statements Is Correct Regarding Various Types

question 52

Multiple Choice

Which one of these statements is correct regarding various types of investors?

• A)Taxpayers in high tax brackets tend to prefer dividends over capital gains.
• B)Pension funds are taxed at a low rate of 10 percent on both dividends and capital gains.
• C)Corporations can exclude at least 70 percent of their dividend income from taxes.
• D)Pension funds pay taxes on capital gains but not on dividends.
• E)Corporations can exclude at least 70 percent of both their dividend income and capital gains from taxes.

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Definitions:

Providing Services

Refers to the act of performing tasks or duties for others, usually in exchange for compensation.

Managing Partner

A member of a partnership who has the authority and responsibility for the management and operation of the business.

Articles Of Organization

The document filed with a state authority to legally establish a limited liability company (LLC).

Business Run

An operation or series of operations involving the production, distribution, and sale of goods or services by a business.