Which of the Following Statements Is False

question 47

Multiple Choice

Which of the following statements is false?

• A) In Canada, shareholders typically must pay taxes on the dividends they receive.
• B) In Canada, taxes on capital gains income are deferred until the stock is sold; thus the present value of the taxes on capital gains is usually substantially less than the taxes on dividends
• C) The actual difference in tax rates on dividend income and capital gains income has changed over the years in both Canada and the United States.
• D) Historically in Canada, the taxes applied to capital gains income have been higher than taxes applied to dividend income.

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Definitions:

Fairness, Equity

The quality of being impartial and just, and ensuring individuals receive what they deserve based on their needs, conditions, and contributions.

Compromise

A settlement of differences by mutual concessions or modification of demands.

Future Favors

A practice commonly seen in developing countries based upon mutual obligation and resulting in the exchange of favors over years and even generations; also used in some industrialized countries such as Japan and South Korea.

Inner Circle

A clique of trusted family members, tribal members, or friends (depending on the culture) who are at the center of power or influence.