Actual Dividends Paid to Shareholders Result in Double Taxation

question 33

True/False

Actual dividends paid to shareholders result in double taxation. Likewise, deemed dividends (e.g., free use of corporate assets by a shareholder) result in double taxation.

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Definitions:

Product

An item that is created through a process and is offered for sale to consumers in the market.

Market Demand Curve

A graphical representation showing the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Demand Curves

Graphs showing the relationship between the price of a good and the quantity of that good that buyers are willing to purchase at various prices.

Goods

Tangible items that are produced for sale or use, often categorized as consumer or industrial goods.