Answer True or False for questions A-F. A. Creating a sole proprietorship is costly and administratively burdensome, which is why LLCs are the most common organizational form. B. Because C-corporations face double taxation, generally only tax-exempt entities establish themselves as C-corporations. C. Given the choice between locating an expense in a high tax rate country and a low tax rate country, companies will generally choose to locate the expense in a low tax rate country. D. In a progressive tax system, average tax rates are generally higher than marginal tax rates. E. Increasing the corporate tax rate could adversely affect shareholders of the corporation, customers, etc., as the effect of the tax could pass through to these other parties. F. Transfer pricing is illegal, and components of the Tax Cuts and Jobs Act were enacted to fight pernicious evil.

Answer True or False for questions A-F. A. Creating a sole proprietorship is costly and administratively burdensome, which is why LLCs are the most common organizational form. B. Because C-corporations face double taxation, generally only tax-exempt entities establish themselves as C-corporations. C. Given the choice between locating an expense in a high tax rate country and a low tax rate country, companies will generally choose to locate the expense in a low tax rate country. D. In a progressive tax system, average tax rates are generally higher than marginal tax rates. E. Increasing the corporate tax rate could adversely affect shareholders of the corporation, customers, etc., as the effect of the tax could pass through to these other parties. F. Transfer pricing is illegal, and components of the Tax Cuts and Jobs Act were enacted to fight pernicious evil.