What Is the Process of Double Taxation for the Stockholders

question 30

Multiple Choice

What is the process of double taxation for the stockholders in a C 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.

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Definitions:

Gate-Control Theory

The theory that the spinal cord contains a neurological “gate” that blocks pain signals or allows them to pass on to the brain. The “gate” is opened by the activity of pain signals traveling up small nerve fibers and is closed by activity in larger fibers or by information coming from the brain.

Endorphins

“Morphine within”—natural, opiate-like neurotransmitters linked to pain control and to pleasure.

Adrenaline

A hormone and neurotransmitter that increases heart rate, muscle strength, blood pressure, and sugar metabolism, often associated with the body's "fight or flight" response.

Somatosensory Cortex

An area at the front of the parietal lobes that registers and processes body touch and movement sensations.