If an Investor Uses a Reinvestment Plan to Invest Income

question 46

Multiple Choice

If an investor uses a reinvestment plan to invest income dividends and capital-gain distributions:

• A)then both the income dividends and capital-gain distributions are tax-exempt.
• B)only the income dividends are tax-exempt.
• C)only the capital-gain distributions are tax-exempt.
• D)both the income dividends and capital-gain distributions are currently taxable.
• E)then both the income dividends and capital-gain distributions will be tax-deferred.

Grasp the significance of making an effective buffer in mitigating the impact of bad news.

Comprehend the necessity of maintaining positive relationships even when delivering negative news.

Acknowledge the importance of preliminary explanations in cushioning the impact of bad news.

Develop skills in crafting messages that present bad news or refusals in a way that aims to preserve goodwill and potentially benefit the reader.

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Definitions:

Contributory Negligence

Contributory negligence is a legal doctrine that denies or limits a plaintiff's ability to recover damages if their own negligence contributed to the harm they suffered.

Reasonable Person

A hypothetical individual in society who exercises average care, skill, and judgment in conduct and who serves as a comparative standard for determining liability.

Res Ipsa Loquitur

A legal doctrine allowing the presumption of negligence in a case where the exact cause of harm is unknown but it is clear the defendant had control.

Superior Skill

Exceptional ability or proficiency in a particular area, often surpassing the ordinary or expected level of expertise.