A Distribution to a Shareholder Will Not Be Treated as Dividend

question 43

True/False

A distribution to a shareholder will not be treated as dividend income if the corporation had a deficit in accumulated E & P.

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Definitions:

Primary Revenue Model

The main method through which a business generates income from its products or services, such as subscription fees, sales, or advertising.

Revenue Model

describes how a business generates income through various streams such as product sales, subscription fees, or advertising revenues.

Entrepreneur

An individual who initiates, organizes, and operates a business venture, taking on financial risk in the hope of profit.

Customer Value Proposition

A statement that describes why a customer should buy and use your product or service.