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Consider the Following Methods of Taxing a Corporation's Income

question 150

Multiple Choice

Consider the following methods of taxing a corporation's income:
a. A flat tax, as opposed to a progressive tax, is levied on corporate profits.
b. A system whereby a corporation calculates its annual profit and notifies each shareholder of her portion of the profits. The shareholder would then be required to include this amount as taxable income for her personal income tax. The corporation does not pay a tax.
c. A system where the federal government continues to tax corporate income through the corporate income tax but allows individual taxpayers to receive, tax free, corporate dividends and capital gains.
Which of the methods above would avoid double taxation?

Comprehend the concepts of absolute and comparative advantages.

Define key terms in international trade such as balance of trade, tariffs, and quotas.

Analyze the effects of currency valuation on imports and exports.

Recognize the varied impacts of tariffs, trade restrictions, and international business barriers.

Definitions:

Even Number

An integer that is divisible by 2 without leaving a remainder.

Observations

Data points collected during a study or experiment, representing individual instances or occurrences of the variables being studied.

Variance

A measure of the dispersion or spread of a set of data points around their mean value; it quantifies how much the data points differ from the mean.

Standard Deviation

An indicator of the range or spread of a collection of numbers, showing how far the values diverge from the average.