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:

Mitochondria

Organelles within eukaryotic cells that produce energy through the process of cellular respiration, often referred to as the powerhouse of the cell.

Chloroplasts

Membranous organelles that are the sites of photosynthesis in eukaryotes; occur in some plant and algal cells.

Vacuole

(vacuole) A fluid-filled, membrane-enclosed sac found within the cytoplasm; may function in storage, digestion, or water elimination.

Apoptosis

Programmed cell death; apoptosis is a normal part of an organism’s development and maintenance. Compare with necrosis.