Consider the Following Methods of Taxing a Corporation's Income

question 150

Multiple Choice

Consider the following methods of taxing a corporation's income:
a. A flat tax, as opposed to a progressive tax, is levied on corporate profits.
b. A system whereby a corporation calculates its annual profit and notifies each shareholder of her portion of the profits. The shareholder would then be required to include this amount as taxable income for her personal income tax. The corporation does not pay a tax.
c. A system where the federal government continues to tax corporate income through the corporate income tax but allows individual taxpayers to receive, tax free, corporate dividends and capital gains.
Which of the methods above would avoid double taxation?

• A) a, b, and c
• B) a and b only
• C) a and c only
• D) b and c only

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Definitions:

Word Salad

A disorganized speech pattern reflecting severe disconnection in thought, often seen in psychiatric conditions like schizophrenia, where words are jumbled without logical connection.

Dopamine Receptors

Proteins located on the surface of neurons that bind to dopamine and transmit its signal inside the cell, influencing mood, motivation, and pleasure.

Norepinephrine

A neurotransmitter involved in arousal and alertness, as well as in the stress response.

Positive Symptoms

Features of psychotic conditions characterized by the presence of unusual perceptions, thoughts, or behaviors not normally experienced by individuals.