1. List and describe the four corporate characteristics.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1.
List and describe the four corporate characteristics.
2.
Give an example of pass-through taxation and double taxation.
Which characteristics does a sole proprietorship or partnership have and how are
they taxed?
3.
4.
Which of the corporate characteristics does an S-corporation have and
how are they taxed?
5.
What limitations are S-corporations subject to?
6.
Which corporate characteristics does a Limited Liability Company Have
and how are they taxed?
7.
Discuss the agency problem between the firm's owners and the firm's
managers. How can the firms' owners minimize this agency problem?
Transcribed Image Text:1. List and describe the four corporate characteristics. 2. Give an example of pass-through taxation and double taxation. Which characteristics does a sole proprietorship or partnership have and how are they taxed? 3. 4. Which of the corporate characteristics does an S-corporation have and how are they taxed? 5. What limitations are S-corporations subject to? 6. Which corporate characteristics does a Limited Liability Company Have and how are they taxed? 7. Discuss the agency problem between the firm's owners and the firm's managers. How can the firms' owners minimize this agency problem?
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Business organization can be defined as an entity which is formed in order to carry out commercial trading activities. The structure of a business organization depends upon the type of business entity. An entity can be of different types. Some of the common forms of business organizations are corporate organization (company), partnership, sole proprietorship, joint venture, etc. 

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