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 rate of return is the net gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Standard Return

The typical or average return expected from an investment, benchmarked against similar investments or industry standards.

Investment

Investment refers to the use of capital to purchase assets with the potential to generate returns in the form of income, dividends, or capital gains.