Why would a corporation purchase the stock of another corporation?     a. To prevent double taxation of its shareholders     b. Because dividends received by a corporation are partially tax-exempt     c. It is equivalent to a tax carried forward     d. It is equivalent to a tax carried back

Which of the following are correct statements concerning corporate dividends?   a. Dividends are legal liability of a corporation to its shareholders   b. Dividends paid by a corporation to another corporation receive preferential tax treatment (minimum 70% exclusion from taxable income)   c. Dividends are generally paid to the shareholders before the payment of interests to the bondholders   d. Dividends payments are considered tax deductible expense while interest payments are not

This answer is wrong . please give me the right answer.

The corporate form of business is never preferred from a tax perspective because of the inherent double taxation.   True or False?