Select the best answer.Which of the following statements regarding various entities is true?O A. A business entity with only one owner is classified as a corporation or is disregarded.O B. A disadvantage of a pass-through entity is double taxation.OC. By default, an eligible entity that has a single member will be treated as a limited partnershipPartnerships are taxpaying entities, because tax attributes pass through to the individualpartners.O D.Submit Answers100% Complete

A partnership is a type of business entity in which two or more individuals, entities, or…

Select the best answer. Which of the following statements regarding various entities is true? O O O A. A business entity with only one owner is classified as a corporation or is disregarded. B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited partnership_ Partnerships are taxpaying entities, because tax attributes pass through to the individual partners. D.

Select the best answer. Which of the following statements regarding various entities is true? O O O A. A business entity with only one owner is classified as a corporation or is disregarded. B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited partnership_ Partnerships are taxpaying entities, because tax attributes pass through to the individual partners. D.

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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The Limited Liability Company (LLC) is a step above the sole proprietorship and partnership in that it does not limit the owners' personal liability and can more easily obtain funding from lenders and investors. Select one: True False
Which of the following statements is most true? a. The liability for other partners’ wrong doings is limited to the amount a particular partner has invested in the partnership. b. Partnerships are formed in accordance with specific guidelines that include the filing of a formal written agreement to the government. c. A fast growing firm would be more probable to establish a partnership as its business form than would a slow growing firm. d.Corporations can easier attract investors than those of the partnership and sole proprietor businesses.
The first step in forming a sole proprietorship is filing out the appropriate paperwork and paying the necessary filing fees with the secretary of state in the state where the business will operate. True false S corporations and closed corporations' earnings are exempt from federal and state income taxes based on a commitment to reinvest in local communities. True false
In a limited liability company, profits are taxed as a partnership. True False
Which of the following can be eligible shareholders in an S Corporation? O Partnership. A Resident Alien. O Any Trust. O Corporations.
Which statement is incorrect? a. S corporations are treated as corporations under state law. b. S corporations are treated as partnerships for Federal income tax purposes. c. Distributions of appreciated property are taxable to the S corporation. d. All of these choices are correct.
Identify the false statement: A. Dividends earned by a resident foreign corporation from a domestic corporation is inter-corporate dividend exempt from income tax. B. Dividends earned by a domestic corporation from a foreign source is inter-corporate dividend exempt from income tax, with certain conditions. C. Dividends earned by a domestic corporation from another domestic corporation is inter-corporate dividend exempt from income tax. D. A corporation may be formed by one person only. E. Every partnership shall be taxed in the same manner as a corporation. F. The share of a partner in the income of a professional partnership shall be subject to regular income tax. G. None of the above.
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Question One: State whether each of the following statements is true or false and correct the false statements: 1. General partnerships are not subject to taxes on its income. 2. Double taxation is one of the major disadvantages of partnerships. 3. In limited partnerships limited partner has the right to manage the business. 4. Mutual agency does not exist in partnerships. 5. Corporations can be formed by a verbal agreement.
Which of the following is a distinguishing feature of a limited liability partnership? Question 10 options: a) It is intended to address the concerns of professionals who are not permitted to form corporations. b) It is a form of business that is not yet available in Canada. c) Its partners are shareholders. d) The liability of some of the partners is limited to their capital contribution.
A limited liability company (LLC): Multiple Choice Has owners called members. Is subject to double taxation.