Which of the Following Statements Describes the Corporate Characteristic Termed

question 143

Multiple Choice

Which of the following statements describes the corporate characteristic termed double taxation?

• A) The liabilities of the corporation cannot be extended to the personal assets of the shareholder.
• B) Shares of stock can be readily bought and sold by investors on the open market.
• C) Shareholders are not authorized to sign contracts or make business commitments on behalf of the corporation.
• D) Corporations pay income tax on corporate earnings, and shareholders pay personal income tax on corporate dividends and gains from sale of stock.

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Definitions:

Socializing Influences

Forces that shape individuals' behaviors, beliefs, and identities through social interactions and cultural norms.

Mass Media

Various means of communication that reach large numbers of people, such as television, newspapers, and the internet.

Self-Socialization

The process by which people, especially children, learn and internalize social norms and expectations through personal choices and interactions, rather than through direct teaching.

Mass Media

Channels of communication such as television, newspapers, radio, and the internet that reach a large audience, influencing public opinion and disseminating information.