Identify Which of the Following Statements Is True

question 71

Multiple Choice

Identify which of the following statements is true.

• A)C corporation operating losses are deductible by the individual shareholders.
• B)If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur.
• C)Capital losses incurred by a C corporation can be used to offset the corporation's ordinary income.
• D)All of the above are false.

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Definitions:

Operating Strategies

Comprehensive plans or actions implemented by a business to reach its objectives and streamline its operational process.

Stock Price

Represents the current market value of a company’s shares, influenced by investor supply and demand.

Hedge Fund

An alternative investment fund that employs various strategies to earn active return, or alpha, for investors.

Arbitrage

The simultaneous purchase and sale of an asset to profit from a difference in the price in two different markets.