If a corporation has no E & P, its shareholders will not have constructive dividends.

Name: If a corporation has no E & P, its shareholders will not have constructive dividends.
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Quizplus · Accepted Answer

E & P stands for earnings and profits. Constructive dividends are when a corporation is treated as having distributed a dividend to its shareholders even though no actual dividend was paid. However, if the corporation has no E & P, there is no basis for constructive dividends to be attributed to the shareholders.

If a Corporation Has No E & P, Its Shareholders