ming an LLC similar to forming a corporation? ) a) As with corporations, there are no documents to file. () b) Similar to a corporation, all owners of an LLC have unlimited liability. () c) LLC owners are also called stockholders, just lik

ming an LLC similar to forming a corporation? ) a) As with corporations, there are no documents to file. () b) Similar to a corporation, all owners of an LLC have unlimited liability. () c) LLC owners are also called stockholders, just lik

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 12MCQ

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The Operating Agreement in an LLC has more or less the same function as Bylaws in a Corporation... that is to organize the structure of the entity. Select one: True False
True or False 1. Whether or not the contracts and transactions entered into by a corporation are binding will be decided on by its governing body 2. For convenience, professionals who practice their professions are allowed to create a corporation for their practice. 3. In non-stock corporations, voting rights do not have anything to do with membership unlike in stock corporations. 4. As a rule, a contract entered into by a corporation with one or more of its trustees or directors, members or stockholders or corporate officers is void.
Which of the following is not true of a corporation? Oa. It may enter into binding legal contracts in its own name. Ob. It may sue and be sued. c. The acts of its owners bind the corporation. Od. It may buy, own, and sell property.
Is forming a corporation does not have the same advanatges as forming an LLC, but the cost are likely to be higher? Please answer immediately :) Thank you
What is a limited liability corporation? Discuss its advantagesand disadvantages. You can search the Internet for thebrief IRS Publication 3402, Taxation of Limited LiabilityCompanies, which includes a section describing this newerform of business organization.
Write T if the statement is correct and F if the statement is incorrect. On the space provided, explain using the concepts discussed why your answer to a statement is T or F. 1. A person of minor age can be a shareholder but can never be an incorporator in a corporation. 2. A corporation can be an incorporator in another corporation. 3. A share certificate can be issued to those subscribers who partially paid their subscriptions. 4. A corporation or business partnership can be an incorporator but not a corporator. 5. All partnership can be an incorporator in a corporation. 6. On January 10,2021, Ana paid 90% of her subscription in Jollibee Foods Corporation. She will receive her certificate of stock on January 10,2021. 7. Continued inoperation of a corporation for at least 5 consecutive years will result in its certificate of incorporation being deemed revoked. 8. In case of conflict between the by-laws and the corporation code, the code shall prevail.
Which of the following is true about a corporation? It combines the advantages of the other forms-sole proprietorship, partnership, and limited liability corporation. Only a for-profit business can be registered as a corporation. For liability purposes, it functions as general partnership. For tax purposes, it functions as a partnership. It exists as a legal entity separate from its owners.
Which of the following show why a corporation is the most important form of business? ☐ Corporations can vote in general elections. Corporations can enter into contracts. Corporations can sue and be sued. A corporation is a separate legal entity with the ability to acquire and exchange property.
1. The following are the attributes of a corporation, except * A. It is an artificial being. B. It is created as a product of the agreement of the incorporators. C.It can enjoy perpetual existence. D. It is functions within the limits granted to it by law. 2. The following corporations are governed by the Revised Corporation Code, except: * A. Stock corporation B. Close corporation C. Public corporation D. Government-owned and controlled corporations 3. In applying the doctrine of piercing the veil of corporate fiction, the following factors may be considered, except: * A. The identity of controlling stockholders in two corporations B. The identity of those who compose the governing body of the subject corporations C.The identity of the stockholders3 D. The internal control system referring to the manner of keeping corporate books and records
A C corporation can be described as: (a) A business that is separate and distinct from its owners, allowing the owners to conduct business while limiting their personal liability. (b) A business association defined by federal statute. (c) A legal entity that has more than one shareholder. (d) A type of corporation where owners have limited liability, and income, expenses, and deductions flow through to the shareholders and are taxed only at the shareholder level.
Like a statutory close corporation, a limited liability company: a) follows the same state laws that C corporations follow. () b) files articles of incorporation outlining operational and organizational levels. ) c) can have no more than 50 shareholders. ) d) is not required to elect a board of directors or hold annual stockholders' meetings.
Forming a limited liability company is one of the best ways to protect personal finances from business debts and obligations. Which of the following describes another advantage of forming an LLC? a) LLCs aren't recognized as legal entities by the government. b) LLCs allow business owners to be tax exempt. c) LLCs offer more flexibility when compared to corporations. d) LLCs pay taxes to the IRS directly, which makes filing