Foundations of Financial Management Study Set 5
Quiz 1: The Goals and Functions of Financial Management
Dividends Paid to Corporate Shareholders Have Already Been Taxed Once
Dividends paid to corporate shareholders have already been taxed once as corporate income.
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One advantage of the corporate form of organization is that income received by shareholders is not taxable since the corporation already paid taxes on the income distributed.
A corporation must have at least 35 shareholders.
Profits of a manufacturing corporation are taxed at the same rate as dividends.
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