Which of the Following Is False with Regard to Dividends,corporations,and

question 8

Multiple Choice

Which of the following is false with regard to dividends,corporations,and shareholders?

• A) Corporate taxable income is generally reduced by the amount of dividends received from other taxable Canadian corporations.
• B) An individual's taxable income is generally reduced by the amount of dividends received from taxable Canadian corporations.
• C) Corporate taxable income is generally reduced by the amount of dividends received from affiliated foreign corporations.
• D) Generally, Canadian corporate after-tax profits may be shifted to other Canadian corporations by way of dividends, without a tax consequence.

---

Definitions:

Coincidence of Wants

In barter economies, this refers to the situation where two parties each possess an item the other wants, making an exchange possible without the need for money.

Medium of Exchange

An intermediary used in trade to avoid the inconveniences of a pure barter system.

Specialization in Production

The process by which individuals, businesses, or countries focus on producing a limited scope of goods or services to gain greater efficiency and quality.

Coincidence of Wants

A situation in a barter economy where two parties each hold an item the other wants, facilitating a direct trade without the need for a medium of exchange.