What Is the Process of Double Taxation for the Stockholders

question 76

Multiple Choice

What is the process of double taxation for the stockholders in a corporation?

• A)Their shares are taxed when they are both bought and sold.
• B)The corporation is taxed on the profits it makes,and the owners are taxed when this profit is distributed to them.
• C)The owners of a corporation are taxed when they receive dividend payments and when they make a profit from the sale of shares.
• D)The corporation must pay taxes on any profits it makes,and the capital raised by the sale of shares is also subject to taxation.
• E)The corporation is taxed on any profits it makes,and owners are taxed when they sell their shares.

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Definitions:

Simplify

To reduce a mathematical expression or problem to its simplest form, making it easier to understand or solve.

Numerical Coefficient

A number that multiplies a variable in an algebraic expression, representing the variable's rate of change.

Algebraic Expression

A mathematical phrase that can include numbers, variables, and operation symbols but does not contain an equality sign.

Simplify

To make something easier to understand or do by reducing its complexity.