Capital Gains May Be Preferred by Investors Over Dividends Even

question 8

Multiple Choice

Capital gains may be preferred by investors over dividends even if their tax rates are equal because:

• A)Taxes on dividends are withheld from paycheques
• B)Taxes on capital gains are paid annually
• C)Taxes on capital gains can be timed
• D)After-tax dividends are less certain than capital gains

Understand the consequences of regulatory and legal actions on industries with price-fixing and market-sharing agreements.

Comprehend the importance and impact of cartel-like organizations (e.g., OPEC) on global markets.

Learn the definitions and examples of market terminologies and measurements, like cutthroat competition and collusion.

Analyze the effects of firm behaviors on competitors and how it informs competitive strategies.

---

Definitions:

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the level of production or business activity, such as materials, labor, and energy costs.

Process-Focused

An approach emphasizing the importance of processes in achieving a company's objectives, often through continuous improvement and optimization of workflows.

Repetitive Manufacture

A manufacturing process characterized by the continuous production of high volumes of the same product or component.