Which of the Following Is True Concerning Dividends

question 6

Multiple Choice

Which of the following is true concerning dividends?

• A) The scheme to eliminate double taxation assumes that the corporate tax rate is 27.5% when dividends are grossed-up to include 138% of the dividend.
• B) Dividends received from a CCPC's business income that is not subject to the small business deduction are grossed-up to include 118% of the dividend.
• C) Dividends received from a CCPC's business income that is subject to the small business deduction are grossed-up to include 138% of the dividend.
• D) Eligible dividends require a 118% gross-up.

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Definitions:

Expel

Expelling refers to the action of forcing someone or something out of a place or situation.

Limited Partnership

A business structure where some partners have limited liability and limited involvement in the management of the company.

Personal Property

Any movable property that is not attached to or associated with the land. This includes physical objects such as furniture and vehicles, as well as intangible rights.

Limited Partners

Investors in a partnership who have limited liability to the extent of their investment and do not participate in day-to-day management.