Final answer:
a) True
Corporate taxes are a substantial cash outflow for corporations, including income tax on profits, which is the third-largest source of federal revenue.
Step-by-step explanation:
Taxes are indeed a significant cash outflow for corporations, making the statement a) True. Corporations are obligated to pay various forms of taxes such as corporate income tax, property tax, payroll tax, excise tax, customs tax, and value-added tax, which are similar to those levied on other forms of taxpayers. Corporate income taxes are particularly substantial as they are imposed on the profits earned by the corporation and represent the third-largest source of federal revenue. This taxation can influence the economic behavior of corporations and has implications for overall economic activity.