Identify the Advantages of Forming a Business as an S

question 43

Multiple Choice

Identify the advantages of forming a business as an S Corporation.

• A) owners avoid double taxation and owners have limited liability
• B) treated as a separate legal entity and owners avoid double taxation
• C) owners have limited liability and corporation's earnings are tax free
• D) owner is personally responsible for debts of the business and earnings are reported directly on owner's personal tax return

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Definitions:

Placoid Scales

The toothlike scales found in sharks and other cartilaginous fishes.

Cartilaginous Fishes

A class of fishes that have skeletons made entirely out of cartilage, rather than bone.

Jawless Fishes

A group of fish that lack a true jaw, represented by modern lampreys and hagfishes, belonging to the superclass Agnatha.

Myxini

A class of jawless marine animals known as hagfishes, characterized by their slimy skin and primitive features.