Corporations May Have a Legitimate Preference for Dividends Over Capital

question 39

Multiple Choice

Corporations may have a legitimate preference for dividends over capital gains because:

• A) capital gains have a 50% tax rate.
• B) dividends received by corporations are not taxable.
• C) 30% of dividends received by corporations are exempt from taxation.
• D) 70% of dividends received by corporations are exempt from taxation.

Grasp the origins and key principles of deterrence theory and its differentiation from the positivist school of criminology.

Distinguish between deterrence and rehabilitation as philosophies within the operation of the criminal justice system.

Recognize the principles of peacemaking criminology and its focus on nonviolence and addressing social injustice.

Understand the concept and effectiveness of restorative justice as an approach within the criminal justice system.

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Definitions:

Subsidiary

A company controlled by another company, often referred to as its parent company, through ownership of more than half of its voting stock.

Initial Value Method

An accounting approach where an investment is recorded initially at cost, without adjusting for changes in market value over time.

Investment Account

A financial account that holds securities, stocks, bonds, and other investments for the benefit of an investor.

Subsidiary

A company that is completely or majority-owned by another company, referred to as the parent company.