Both Tax and Nontax Objectives Should Be Considered When Choosing

question 62

True/False

Both tax and nontax objectives should be considered when choosing the entity type for a new business.

---

Definitions:

Holder In Due Course

A person who has acquired a negotiable instrument in good faith for value and without notice of any defects.

Forged

Refers to the illegal modification or creation of a document, artwork, or signature with the intent to deceive.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Holder

A legal term referring to an individual or entity that possesses a negotiable instrument, such as a check or promissory note, and has the right to collect and enforce the instrument.