When each stockholder incurs a tax liability on his or her share of the earnings of a corporation (whether or not the earnings are distributed),this is known as

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Full integration refers to the taxation of both the corporation and its stockholders on the same income. This means that the stockholders will pay taxes on their share of the earnings of the corporation, regardless of whether or not the earnings are distributed as dividends. This is in contrast to a system where only distributed earnings are taxed at the stockholder level (known as partial integration). The other options, being fully funded, full loss offset, and fully imputed rent, do not relate to this concept.

When Each Stockholder Incurs a Tax Liability on His or Her