Which of the Following Is Not an Economic Distortion Created

question 45

Multiple Choice

Which of the following is not an economic distortion created by the double tax on dividends?

• A) An incentive to invest in noncorporate rather than corporate businesses.
• B) An incentive for corporations to finance operations with debt rather than equity.
• C) An incentive to invest domestically rather than internationally.
• D) An incentive for corporations to retain earnings and structure distributions to avoid dividend treatment.
• E) All of the above represent economic distortions created by the double tax on dividends.

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Definitions:

Bic Pens

A brand known for producing affordable and widely used writing instruments.

Previous Customers

Individuals who have previously made purchases from a business, often targeted for repeat sales through loyalty programs or marketing.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about potential consumers.

Target Audience

A specific group of consumers most likely to be interested in a product or service, identified for marketing efforts.