Even If Both Dividends and Capital Gains Are Taxed at the Same

question 59

Multiple Choice

Even if both dividends and capital gains are taxed at the same ordinary income tax rate, the effect of each type of tax is different because

• A)capital gains are actually taxed, while dividends are taxed on paper only.
• B)dividends are taxed when distributed, while capital gains are deferred until the stock is sold.
• C)both dividends and capital gains are taxed every year.
• D)capital gains are actually taxed, while dividends are taxed on paper; and both dividends and capital gains are taxed every year.

---

Definitions:

Mosquito Nets

Fabric barriers designed to prevent mosquitoes from accessing an area, typically used over sleeping areas to prevent mosquito bites.

Risk Assessment

A systematic process of evaluating the potential risks that may be involved in a projected activity or undertaking.

Hazards

Potentially dangerous situations or materials that can cause harm or damage to people, property, or the environment.

Decision Makers

Individuals or groups who have the authority to make choices that influence outcomes in a variety of contexts, such as organizational or governmental settings.