A Flow-Through Entity's Primary Characteristic Is That Income Escapes Taxation

question 79

True/False

A flow-through entity's primary characteristic is that income escapes taxation at the entity level and flows-through to be taxed at the ownership level.

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Definitions:

Treasury Bill

A short-term government security issued at a discount from the face value and maturing at full face value, offering investors a secure, short-term investment option.

Simple Rate of Return

A measure of the gain or loss on an investment over a specific period, expressed as a percentage of the investment's initial cost.

Issued

Refers to the process of making something available or distributing it, commonly used in the context of financial instruments like stocks or bonds.

Revolving Line

A type of credit that does not have a fixed number of payments, in contrast to installment loans; credit is automatically renewed as debts are paid off.