Real estate ownership is often structured in a limited partnership or LLC legal form. The PRIMARY reason why these forms are preferred over a regular corporation is: a. Provides the participants easier way to borrow funds b. Allows owners the benefit of state laws versus federal laws c. To avoid double taxation d. Ability to limit liability

Q: When would a sole proprietorship use IFRS? Select one: a. If it ho plans to become public in the…

A: A sole proprietorship would typically use IFRS (International Financial Reporting Standards) if…

Q: The term arm's length can apply to transactions involving trusts, corporations, and individuals.

A: The concept of arm's length states that the parties are independent and they are not under any…

Q: Select the best answer. Which of the following sta O A. A business enti O B. A disadvantage O C. By…

A: Partnership refers to the term which is defined as the contractual agreement among two or more…

Q: Characteristics of a corporation include

A: Shareholders are the owner of the shares issued by the company. They have the power to vote and…

Q: Relative to corporate formation, how can one contribute appreciated property without gaining…

A: Relative to corporate formation, how can one contribute appreciated property without gaining…

Q: FINANCING DECISIONS What are the advantages and examples of Internal Financing (at least 2 for Sole…

A: Internal financing sources is defined as the funds that used to come from inside the business. There…

Q: Which one of the following statements correctly describes a characteristic of an entity purchase…

A: In this question we will explain that which is the correct option  or a suitable characteristic of…

Q: Which of the following is true about a corporation? It combines the advantages of the other…

A: A corporation is a legal entity that is separate and distinct from its owners. This separation…

Q: 1. What are the potential consequence of a limited partner assumes management responsibilities…

A: An unincorporated commercial entity created by two or more people is known as a partnership. A…

Q: Which are two types of corporations that could be used for real estate?

A: A corporation is a legal form of business whose main feature is the Doctrine of separate legal…

Q: what are the advantages of an LLC versus operating as a C Corporation, and  S Corporation

A: A limited liability Company (LLC) is a business structure for private companies in the US. It…

Q: Which of the following statements is false concerning Variable Interest Entities? Multiple Choice…

A: Variable Interest Entities (VIEs) are a type of legal structure used in accounting and financial…

Q: What is the fiduciary duty (i.e., the primary goal) for mostU.S. corporations?

A: Introduction: A fiduciary obligation is the highest level of treatment, where the one who owes these…

Q: Pne disadvantage of forming a corporation rather than a partnership is that this makes it more…

A: In this question, we are required to determine whether the given statement regarding disadvantage of…

Q: 2. Limited liability is an important feature of: A. Corporations B. Both partnerships and…

A: given data 2) Limited liability is an important feature of: 4) The ultimate financial goal of a…

Q: Grape Corporation makes a nonliquidating distribution of appreciated property to its shareholders.…

A: Dividend includes all the cash or non cash transaction made with shareholders.

Q: Debate the following proposition: All corporate formation transactions should be taxable events.…

A: Section 42 of the Income Tax Act No. 58 of 1962 (the Act) was introduced as part of the special…

Q: The Operating Agreement in an LLC has more or less the same function as Bylaws in a Corporation...…

A: The answer is TRUE

Q: What expense do corporations incur that sole proprietorships and partnerships do not?

A: Corporation: The form of business entity ,which is incorporated by state law into a separate legal…

Q: Dominic Martinez has invested in something that acts like a mutual fund and that derives income from…

A: Real Estate Investment Trusts (REITs) are investment vehicles that primarily deal with real…

Q: Paid-in-capital What types of paid-in-capital are there and what is the diffference in each…

A: Capital:Capital is the amount invested in the business. Capital increases by the amount of  profits…