Identify the advantages of forming a business as an S Corporation. Multiple Choice O O owners avoid double taxation and owners have limited liability. treated as a separate legal entity and owners avoid double taxation owners have limited liability and corporation's earnings are tax free owner is personally responsible for debts of the business and earnings are reported directl

Identify the advantages of forming a business as an S Corporation. Multiple Choice O O owners avoid double taxation and owners have limited liability. treated as a separate legal entity and owners avoid double taxation owners have limited liability and corporation's earnings are tax free owner is personally responsible for debts of the business and earnings are reported directl

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following characteristics distinguish a corporation from other forms of businesses? I. Centralization of management II. Continuity of life III. Free transferability of ownership interests IV. Limited liability V. Profit motive Oa. Statements I, II, IV, and V are correct. Ob. Statements IV and V are correct. Oc. Statements I, II, III, and IV are correct., Od. All are distinguishing characteristics. Oe. Only statement III is correct.
What is an important reason business owners choose the election for s corporation status.
A C-corporation has the following advantages EXCEPT limited liability avoiding double taxation shareholders may or may not manage the business easy to raise a large amount of capital O OOO
Business income allocations from an S corporation to its shareholders are self-employment income to the shareholders.a. Trueb. False
please answer correct in detail Identify each of the following characteristics as being an advantage or a disadvantage of the corporate form of business or not applicable to the corporate form of business organization. 1. Seperate legal entity 2. Taxable entity resulting in additional taxes 3. Continuous life
The corporation is the most effective form of business organization because the corporation has: Select one: a) easier access to financial capital through selling bonds and stocks b) an unlimited liability toward the stock owners c) the problem of double taxation with respect to the corporate income d) a lot of skilled and semi-skilled labourers e) more freedom of action with respect to management
For what reason do corporations retain earnings in the business?
B1.
ESPAÑOL INGLÉS FRANCÉS Common shareholders are considered the residual owners of a corporation. The term residual means that the common stockholders to. They are entitled to receive dividends every year in which the company generates a profit. b. they assume the ultimate risks and uncertainties and receive the benefits of ownership in a corporation. С. are entitled to specific assets. Enviar comentarios MacBook Air
Which of the following is true about this statement: "In a sole proprietorship, the owner's personal assets are at risk if the business is not successful." Is this true? a) No, personal assets are protected by sole proprietorship laws. b) Yes, there is no protection for personal assets with sole proprietorships. c) No, personal assets are only at risk with corporations. d) Yes, this is true for all forms of business.
Question 6: What are the main advantages a) and disadvantages of a small private business becoming a private corporation?
owners have no personal liability under which legal business structure? a. corporation b. a partnership c. a sole proprietorship d. there is liability in every legal business structure