What actions would you suggest the bod to take

Assignment Help Strategic Management

Reference no: EM13835938

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

Reference no: EM13835938

Questions Cloud

Examine effects of psychological contract breach on employee : Examine the effects of psychological contract breach on employee attitude and behavioural job outcomes such as job satisfaction, intention to quit, organizational support, motivation, organizational citizenship behaviour and employees' job perform..

Discuss gibersons rights in this matter : Gibson tells all its sales personnel to offer 20 percent discounts on orders. Illiana solicits orders, but she offers only 15 percent discounts, pocketing the extra 5 percent paid by customers. Illiana has not lost any orders by this practice, and sh..

Personal liability for business debts : Personal Liability for Business Debts Henry had loaned about $100,000 to a friend, Mary, to use in a business venture Mary was setting up with her associate, Milly. Henry says he doesn't care about the business because this was a personal loan to Mar..

Find the machinery account : Each machine had an estimated useful life of 5 years and nil residual values. Straight line method of depreciation is used - Find the machinery account, accumulated depreciation accont and disposal account as at 31.12.2013

What actions would you suggest the bod to take : This double taxation is something most of the stockholders would like to avoid. A few hippies, however, don't care about the taxes; they think it is a good idea for the government to get more revenue. What actions would you suggest the board of direc..

Identify stakeholders that are currently being neglected : Try to identify specific stakeholders that are currently being neglected by the current approach to business, especially those in the more influential categories (such as dominant, definitive and dependent).

Select an athlete and study the performance trends : "Athletes' Performance" From the e-Activity, select an athlete and study the performance trends of his/her career. Once you have reviewed his/her performance trends, provide three bullets about how his/her career has been successful in the form of po..

Discuss the corporate social responsibility : Discuss the CORPORATE SOCIAL RESPONSIBILITY of each company - How important is the conceptual framework, and above pictured 8 principles of corporate governance are for the chosen companies

Calculate the change in the quantity of rye demanded : Calculate the change in the quantity of rye demanded divided by the change in the price of rye. Measure the quantity of rye demanded in bushels. The change in the quantity of rye demanded divided by the change in the price of rye in bushels is___...

User Account

All Pages