Answered: Which of the following is a…

Which of the following is a characteristic of a corporation?a. No income taxb. Limited liability of stockholdersc. Mutual agencyd. Both b and c

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 9. Under Section 22 (B) of the Tax Code, the term "corporation" does not include: Associations…

A: The tax code is the law presiding over the Philippines that guides tax compliance in the country.

Q: Dividends paid to a shareholder by a corporation should be reported on which of the following forms?…

A: form 1099 DIV it is used to report the amount of ordinary dividend received. 1099 R is for…

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: porate earnings and profits (E&P) is correct?

A: E&P refers to the accumulated earnings and profits of a company. The E&P of a company…

Q: true or false A corporation may NOT legally invest in the bonds of another corporation

A: A corporation is a form of business organization that is legally formed and has a group of people…

Q: What is an owner of a corporation called? What is the difference between a closed corporation and…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: A C corporation can be described as: (a) A business that is separate and distinct from its owners,…

A: Introduction:- There are primarily three types of corporations that businesses form based on…

Q: Which of the following characteristics of a corporation limits a stockholders losses to the amount…

A: The stockholders will share loss of corporation.

Q: The liability of stockholders is normally limited to their investments in the corporation true…

A: The stockholders are considered as the owner of the corporation and the liability is limited to…

Q: Which, if any, of the following can be eligible shareholders of an S corporation? a. A Roth…

A: An S Corporation is a special type of corporation which is established for the purpose of federal…

Q: Which of the following is not considered to be a characteristic of the corporate form of…

A: A corporate is an seperate legal entity with limited liability.

Q: Distinguish between paid-in capital and retained earningsof a corporation. Why is such a distinction…

A: Paid-in capital and retained earnings are the two main categories of stockholders' equity.

Q: For each term indicate the best definition or that none apply. Disappearing Source Rules - Dividend…

A: Companies pay divided out of profit earned in the accounting year.

Q: Which of the following are included in the total legal capital of a corporation assuming the…

A: Legal capital is the amount of capital that is reserved and not allowed to leave the business. It…

Q: Pass through. If the corporation is structured as an S corporation, profits and losses are…

A: Meaning of "Passed Through" Status : It is a concept in which the income or loss of an entity is…

Q: ected by some bilities

A: An S corporation shareholder’s basis may be affected by some or all business liabilities.

Q: rite T if the statement is correct and F if the statement is incorrect. On the space provided,…

A: solution concept incorporator in a corporation Incorporator means the shareholders who incorporate…

Q: 3. Which of the following securities do not provide tax advantage to the company? A. Bond B. Equity…

A: There are various financial instruments some may provide tax benefit and other may not.

Q: The advantages of owning a corporation include a. Difficulty in transferring ownership. b. Limited…

A: Corporation: A corporation is an organization—usually a group of people or a company—authorized by…

Q: Dividends received by a domestic corporation from shares in another domestic corporation are exempt…

A: True, dividends received by a domestic corporation from shares in another domestic corporation are…

Q: Differentiate: a) stock from non-stock corporation b) private from public corporation c) de jure…

Q: A corporation is recognized as a "person." A. B. True False A publicly held corporation is a private…

A: A corporation is a legal entity created under the laws of a particular state or jurisdiction. It is…

Q: True (t) or False (f) _____ Bond interest paid by a corporation is an expense, whereas dividends…

A: Bonds are the certificates of loan taken by a corporation. It is typically secured in nature. The…

Q: When are distributions to shareholders in an s corporation taxable and non taxable?

A: S corporation is one of the popular business entity for people looking for new businesses. The…

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: A business entity that has no ;ax liability because the entity's income is passed through to the…

A: A business entity is an independent organization established under the law to engage in commercial…

Q: any (LLC)? A. Complex

A: To explain the feature of LLC as,

Q: Which of the following are not taxdeductible items to a corporation? interest expenses marketing…

A: Let's understand the problem... Tax-deductible items refer to expenses or costs that a corporation…

Q: Limited liability refers to an owner's liability for which of the following? I. The amount invested…

A: Under limited liability company the shareholders liability is limited only to the extent of nominal…

Q: Which, if any, of the following transactions incurred by an S corporation is not a separately stated…

A: S Corporation:- S Corporation is a closely held corporation of United States federal income tax…

Question

Which of the following is a characteristic of a corporation?
a. No income tax
b. Limited liability of stockholders
c. Mutual agency
d. Both b and c

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

An individual provides accounting services to a corporation in exchange for stock. the shareholder must recognize income and the corporation may deduct or capitalize the expenditure as would be deemed appropriate. A. True B. False
Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation.
True or false, why. 1. Shareholders can transact business on behalf of the corporation.
ASAP
What is the difference in the tax treatment of interest anddividends paid by a corporation? Does this factor favor debt orequity financing?
In the absence of restrictive provisions, what are the basicrights of stockholders of a corporation?
Which statement is incorrect? a. Book value per share is the claim of a shareholder in the net assets of the corporation for every share held in the corporation. b. If a corporation has 2 classes of shareholders, the book value per share should be computed for both preference shares and ordinary shares. c. Book value per share assumes that assets are realized at book values and liabilities are liquidated at book values. Total gains (losses) on realization of assets and liquidation of liabilities, if there are any, are assumed to sum up to zero. d. Excess over par refers to the amount of shareholders’ equity in excess of the total par value of the preference shares and ordinary shares issued by the corporation. e. none of the above
Identify which category of shareholder's equity is affected by each item and briefly explain how it is affected. 1. Sale of additional ordinary shares of the corporation
21.Retained earnings a. Normally approximates a company's cumulative net income less dividends declared b. Can be subject to a statutory restriction by a state. c. Can be subject to restrictions due to loan agreements. d. Can be subject to appropriation by a corporation's directors to limit dividends.
The ability of any stockholder to transfer stock to another person without the knowledge or the consent of the other stockholders and without disturbing the normal activities of the corporation is called a. unlimited life. b. suitability for large scale operations. c. taxation of corporate earnings. d. transferable ownership units.
What are the two primary sources arises Shareholders’ equity for a corporation?
Which business entity could have common stock authorized? O A. a sole proprietorship O B. a partnership O C. a limited liability company O D. a corporation O E. All of the above could theoretically have common stock authorized.