The Shareholder of an S Corporation Can Reduce Income Taxes

question 70

True/False

The shareholder of an S corporation can reduce income taxes by passing income to the owner-employee as a dividend rather than paying salary.

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Definitions:

Peripheral Route Persuasion

A method of persuasion that relies on cues outside of the message content itself, such as the attractiveness or credibility of the source.

Fundamental Attribution Error

The cognitive bias of overemphasizing personal characteristics and underestimating situational factors when explaining others' behaviors.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Foot-In-The-Door

A persuasion technique where one starts with a small request to gain eventual compliance with larger requests.