What actions would you propose the board of directors

Assignment Help Business Management
Reference no: EM1373557

Double Taxation
Wonder Boy, Inc. was incorporated 25 years ago and the initial 5 stockholders did not think to limit the transferability of corporate shares. The company owns land as well as collects rents from farmers who produce crops on it. So, through deaths, gifts, inheritances and divorces the current number of shareholders equals 135 people, few of whom are minors. The board of directors has acknowledged many complaints over the fact that the corporation pays an income tax then when dividends are paid to the stockholders (approximately half of the company's profits), they are as well taxed. This double taxation is somewhat most of the stockholders would like to avoid. A few hippies, but, don't care about the taxes they think it is a good impression for the government to get more revenue. What actions would you propose the board of directors take to avoid this double tax problem?

Reference no: EM1373557

Questions Cloud

Economic threats or opportunities for the us : Determine the economic implications for the United States of the increase of China and India as significant economic powers.
Inside it may be necessary to communicate persuasively : Inside it may be necessary to communicate persuasively to a boss, peer, or subordinate. Assess how or if your communication would vary in each situation
Explain personal liability for business debts : Explain Personal Liability for Business Debts and Henry had loaned about $100,000 to a friend Mary to use in a business venture Mary was setting up with her associate Milly
Compute the equilibrium values : Assume that an earthquake destroys part of capital stock. Forecast what will happen to total production, the real return to capital, and real wage.
What actions would you propose the board of directors : What actions would you propose the board of directors take to avoid this double tax problem?
Analyzing the rights of parties to a ucc contract : Analyzing the Rights of Parties to a UCC Contract Jim's computer is giving him trouble therefore he brings it to the local computer repair shop
From the e-activity choice an athlete and study : From the e-Activity choice an athlete and study the performance trends of his or her career. Once you have reviewed his or her performance trends
What is the difference among these two concepts : A month later his eighteenth birthday corelli chooses that he would rather have $2,500 than the painting.
Exclusive restaurant that seats merely couples for dinner : exclusive restaurant that seats merely 10 couples for dinner is famous for its truffle salad for two which should be prepared one day in advance.

Reviews

Write a Review

 

Business Management Questions & Answers

  Human safeguards - security of information systems

Human Safeguards - Security of Information Systems and Show some human safeguards for employees that can ensure the security of information systems.

  Leadership styles in different cultures

What is expected of leadership styles in different cultures? Give examples of the leadership styles discussed in different countries.

  Introduction to organization leadership and change

What aspects of the key stakeholder's roles do you need to be aware of when communicating the results and what is your plan to address the possible reactions of key stakeholders to the results?

  Training evaluation and validation for barbara maddock

Training Evaluation and Validation for Barbara Maddock - explain the concepts in such a way that someone without a comprehensive background in training will understand the ideas

  Leadership skills

Should organizations seek leaders that fit an existing strategy and structure?

  Define knowledge, skills and abilities

Why would experts suggest that we need more broadly defined KSAs and are these experts right? Why or why not?

  Explaining original intent of reverse discrimination

Using objective reasoning rather than subjective judgments, discuss your opinions on the following: The original intent of reverse discrimination and Affirmative Action.

  Explain the continuum of short term

A new technological advancement has been implemented explain on the continuum of short-term, small-scale and long-term, large-scale changes.

  Explain how did mulally change organizational structure

Explain how did Mulally change Ford's organizational structure, for example, the form of its vertical and horizontal differentiation and integration?

  Environmental management program

What one company has fallen short on one or all of these elements and Environmental Management Program

  Show the effectiveness of email as a communication tool

Since organizations have hierarchies, and since email is a common communication tool, how effective is it as a communication channel?

  Evaluate the concept of comparable worth

Evaluate the concept of comparable worth, summarizing the arguments pro and con.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd