The dividends paid by a corporation to an individual become taxable income of that individual.
Shares, in finance, are the representation of an ownership unit of a company. Investors buy shares from companies to have profits, which are called dividends, and to have voting power in the company.
Answer and Explanation:
- This statement is True.
Dividends that are received by individuals or shareholders are subject to taxable income. Depending on the type of dividend, there are different taxes that an individual needs to pay. For instance, the dividends that are classified as ordinary are taxed as income.
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from Business Law TextbookChapter 22 / Lesson 11