1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
2. __________ represent ownership interests in a corporation.
Debt securities
Equity securities
Subscription agreements
Tender offers
3. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
salaries or retained earnings.
dividends or expenses.
retained earnings or savings.
dividends or retained earnings.