Which of the following statements is correct? a. Income trust cash distributions are taxed at both the trust and individual levels. b. Agency problems easily arise between shareholders and managers in corporations, but they can be addressed by corporate governance. c. A good goal for a firm's management is maximization of stock price at a target date. d. Many Canadian companies' boards have directors who specifically represent the interests of employees and not just shareholders.
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Statement a: "Income trust cash distributions are taxed at both the trust and individual levels." - Income trusts (or REITs in some contexts) are typically flow-through entities, meaning they distribute most of their income to unitholders and are generally not Show more…
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