All of the Following Statements Are True Except

question 42

Multiple Choice

All of the following statements are true except

• A)the net income earned by a sole proprietorship is reported on the owner's individual income tax return.
• B)the net income of an S corporation is subject to double taxation because it is taxed at the entity level and dividends paid from the S corporation to individual shareholders are also taxed.
• C)the net income of C corporation is subject to double taxation because it is taxed at the entity level and dividends paid from the C corporation to individual shareholders is also taxed.
• D)LLCs are generally taxed as partnerships.

---

Definitions:

Strike Price

The set price at which an option's owner has the right to purchase (for a call option) or sell (for a put option) the underlying asset.

Stock Call Option

A financial derivative that gives the buyer the right, but not the obligation, to buy a specific stock at a predetermined price within a set period.

Stock Price

The current price at which a share of a company is bought or sold in the stock market, reflecting the company's perceived value and investor demand.

Dollar Change

Dollar Change indicates the absolute change in the price of a stock, bond, commodity, or index from one day to the next.