Big Business Limited Distributes a Fully Franked Dividend to Its

question 55

Multiple Choice

Big Business Limited distributes a fully franked dividend to its shareholders. Which of the following statements best describes the outcome for shareholders?

• A)The company pays tax on the profits from which the dividend is paid.
• B)The profits from which the dividend is paid are not taxed at the corporate level.
• C)Shareholders must include their share of the profit from which the dividend is paid in their personal income tax return, but this amount is disregarded for their personal tax purposes.
• D)both B and C

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Definitions:

Job Involvement

The level of psychological identification or commitment a person has toward their job and its importance in their life.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding conflicting beliefs, ideas, or values at the same time.

Go Beyond

To exceed or surpass established limits or expectations.

Emotional Commitment

A individual's sense of passion and attachment towards their organization, reflecting how emotionally invested they are in its success.