Which of the Following Is Not a Characteristic of Both

question 13

Multiple Choice

Which of the following is not a characteristic of both S corporations and partnerships?

• A)Both are flow through entities
• B)Owners increase basis for debt undertaken by an S corporation or partnership
• C)Both forms limit owner's participation in tax-free fringe benefits
• D)Owners increase basis for gains and decrease basis for losses

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Definitions:

CSR

Corporate Social Responsibility; refers to businesses making decisions and taking actions that are beneficial for society as well as the organization.

Profits

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes.

Accommodative Strategy

A corporate social responsibility strategy that accepts social responsibility and tries to satisfy society’s basic ethical expectations.

Social Responsibility

The obligation of an organization to act in ways that benefit society at large, beyond its own interests.