Which of the Following Is Not a Consequence of the Double

question 150

Multiple Choice

Which of the following is not a consequence of the double tax on dividends?

• A) Corporations have an incentive to retain earnings and structure distributions to avoid dividend treatment.
• B) Corporations have an incentive to invest in noncorporate rather than corporate businesses.
• C) The cost of capital for corporate investments is increased.
• D) Corporations have an incentive to finance operations with debt rather than equity.
• E) All of the above are consequences of the double tax on dividends.

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Definitions:

Labor Federation

An organization or coalition of trade unions or labor unions that represent workers' interests at a regional, national, or international level.

Freedoms

The state of being free or at liberty rather than in confinement or under physical restraint; rights and privileges that allow individuals to act without undue restrictions.

Scope of Representation

The range of activities and issues that a union or attorney can address on behalf of members or clients.

Soul of Representation

The essence or core principle of acting on behalf of others in contexts like political or workplace representation.