Which of the Following Benefits Does Not Occur When Owner-Shareholders

question 63

Multiple Choice

Which of the following benefits does not occur when owner-shareholders accumulate earnings of their closely-held corporations at the entity level and later sell their stock at an increased value?

• A)Deferral of shareholder tax until the year of sale.
• B)Conversion of ordinary income into capital gain.
• C)Increase in corporate capitalization and reduction in debt-equity ratio.
• D)All of the above occur.

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Definitions:

Genome

The full collection of genes or genetic material contained within a cell or an organism.

Epigenetics

Investigation into the ways organisms are affected by modifications in how genes are expressed, instead of alterations to the genetic code.

Gene-environment Interactions

The complex interplay between genetic factors and environmental influences that affects the expression of genes and can impact an individual's traits and behaviors.

Behavior Genetics

The study of the role genetic factors play in shaping behaviors, traits, and abilities.