Test Information Description Instructions Multiple Attempts Not allowed. This te

Question

Test Information Description Instructions Multiple Attempts Not allowed. This test can only be taken once. Force Completion This test can be saved and resumed later. This test does not allow backtracking. Changes to the answe Question Completion Status: Moving to the next question prevents changes to this answer Question 16 Corporations do not generally offer shareholders the ability to A. limit their personal liability for the corporation's debts and obligations O B. avoid double taxation. ° C. transfer their shares of ownership. D. transfer their shares of ownership. > Moving to the next question prevents changes to this answer. art. 20

Explanation / Answer

B. Avoid double taxation

Double taxation invariably occurs when the Company make profits and pay part of it as Corporate tax , before declaring Dividends while on the other side, even on the dividend so distributed, the shareholders pay taxes. Hence there is no scope to avoid double taxation and therefore Corporations fail to offer the shareholders the ability to avoid the same.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.