Identify Which of the Following Statements Is True

question 47

Multiple Choice

Identify which of the following statements is true.

• A)Loans made to shareholders in proportion to their stock ownership in the corporation is evidence that the loans are disguised dividends.
• B)Corporate payments for the shareholder's benefit may be a taxable dividend.
• C)If the shareholder can elect to receive distributing corporation stock or money, the receipt of distributing corporation stock will be a taxable dividend.
• D)All of the above are true.

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Definitions:

Litigation

The process of working a lawsuit through the court system.

Drafting Documents

The process of creating legal documents requiring specific legal language and adherence to legal protocols.

Client Relations

The practices and strategies that businesses use to maintain and enhance the relationships with their clients.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.