Business Structure - Profit and Loss and Distribution Flashcards
1
Q
Stock dividends
A
are dividends that are paid out in the form of additional stock shares of the company, as opposed to cash
2
Q
The accumulated earnings tax can be avoided
A
By paying cash dividends
3
Q
What is defined as a corporate distribution?
A
Cash dividends
Property dividends
Payments to shareholders to purchase its own shares
Promissory notes
Payments in partial or complete liquidation
4
Q
If partnership is silent in how profits will be shared
A
it is assumed to be shared equally
