Among Various Sources of Financing,which One Will Receive Favourable Tax

question 27

Multiple Choice

Among various sources of financing,which one will receive favourable tax treatments by issuers?

• A)long-term debt
• B)common stock
• C)retained earnings
• D)preferred stock

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Definitions:

Social Security Tax

A tax that funds the United States' Social Security program, collected from both employees and employers.

Take-Home Pay

The amount of income that an individual actually receives after deductions, such as taxes and social security, have been subtracted from their gross salary.

SUTA Tax

A state-level tax that employers pay to fund their state's unemployment benefits programs, with rates and wage bases that can vary by state.

FUTA Tax

A federal tax in the United States paid by employers to fund unemployment benefits.