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Felicia is starting an e-commerce business. She is deciding which entity to use for the business. All of the following are true related to entity characteristics, except: You don't necessarily have to create an entity to operate a business. Cash taken out of partnerships/S-Corps by owners is generally not taxable. O Partnerships and S Corporations, generally, do not pay entity level income taxes OC Corporations pay an entity level tax and any dividends to shareholders are not taxable.

Felicia is starting an e-commerce business. She is deciding which entity to use for the business. All of the following are true related to entity characteristics, except: You don't necessarily have to create an entity to operate a business. Cash taken out of partnerships/S-Corps by owners is generally not taxable. O Partnerships and S Corporations, generally, do not pay entity level income taxes OC Corporations pay an entity level tax and any dividends to shareholders are not taxable.

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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**Choosing a Business Entity for Felicia's E-Commerce Venture** Felicia is starting an e-commerce business. She is deciding which entity to use for the business. All of the following are true related to entity characteristics, except: - ⬜ You don’t necessarily have to create an entity to operate a business. - ⬜ Cash taken out of partnerships/S-Corps by owners is generally not taxable. - ⬜ Partnerships and S Corporations, generally, do not pay entity level income taxes. - ⬜ C Corporations pay an entity level tax and any dividends to shareholders are not taxable.
Transcribed Image Text:**Choosing a Business Entity for Felicia's E-Commerce Venture** Felicia is starting an e-commerce business. She is deciding which entity to use for the business. All of the following are true related to entity characteristics, except: - ⬜ You don’t necessarily have to create an entity to operate a business. - ⬜ Cash taken out of partnerships/S-Corps by owners is generally not taxable. - ⬜ Partnerships and S Corporations, generally, do not pay entity level income taxes. - ⬜ C Corporations pay an entity level tax and any dividends to shareholders are not taxable.
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