Which of the Following Is NOT a Way That a C

question 98

Multiple Choice

Which of the following is NOT a way that a C corporation can minimize double taxation?

• A)use profits to fund the growth of the company
• B)pay out profits in the form of additional compensation to the owners
• C)reserve the reporting of taxed income into the next fiscal year
• D)not realize enough revenue to make a profit

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Definitions:

Rate of Return

The increase or decrease in value of an investment during a specific time frame, represented as a proportion of the investment's initial cost.

Compounded Annually

Interest on an investment is calculated once per year and added to the principal, allowing the investment to grow at an increasing rate.

Investments

Resources allocated with the intention of generating future benefits, such as income or revenue growth.

Graph

A visual representation of data, showing relationships between two or more variables typically on two axes.