Double taxation refers to which of the following scenarios?
A) Both bondholders AND shareholders of a corporation must pay taxes on proceeds received.
B) The corporation pays taxes on its earnings, and creditors pay taxes on interest received.
C) The corporation pays taxes on its earnings, and shareholders pay taxes on dividends received.
D) All of the above
Answer: C
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TempWorks leased space from Consolidated Properties for an eight-year term. The lease did not include a provision regarding assignment of the lease. Two years later, SuperTemps bought out TempWorks. TempWorks can:
A. return the property to Consolidated with any penalties B. ask a judge to terminate its lease, on the grounds of unforeseen circumstances C. assign its leasehold estate to SuperTemps D. try to find a subtenant, but may not assign the space to anyone
The driving force behind the securitization of mortgages and automobile loans has been
A) the rising regulatory constraints on substitute financial instruments. B) the desire of mortgage and auto lenders to exit this field of lending. C) the improvement in computer technology. D) the relaxation of regulatory restrictions on credit card operations.