Post-Tax Profit Is More Important to a Shareholder Than Pre-Tax

question 65

Multiple Choice

Post-tax profit is more important to a shareholder than pre-tax profit as:

• A)the amount of tax paid does not give a true indication of the underlying health of the entity.
• B)tax has to be paid before profits can be distributed as dividends.
• C)personal tax deductions can negate any tax paid by the entity prior to dividends being distributed.
• D)as the entity has no control over the amount of tax that needs to be paid;tax payments do not affect the value of their shares.

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Definitions:

Company's Employees

Company's employees are individuals who work for a specific business or organization, contributing to its operations, services, and goals.

Rules At Work

Guidelines or principles established within a workplace to govern behavior and procedures.

Sensitivity

The quality of being responsive or susceptible to external conditions or stimuli.

Threatening Upward Comparison

It involves comparing oneself to others who are perceived to be better in some way, which can result in feelings of threat or inferiority.