In the Context of Legal Forms of Business, Identify a Benefit

question 51

Multiple Choice

In the context of legal forms of business, identify a benefit of a Subchapter S Corporation over a Subchapter C Corporation.

• A)A Subchapter S Corporation can have a larger number of investors than a Subchapter C Corporation.
• B)A Subchapter S Corporation is easier to form than a Subchapter C Corporation.
• C)A Subchapter S Corporation generally pays lower taxes than a Subchapter C Corporation.
• D)A Subchapter S Corporation has more potential for future expansion than a Subchapter C Corporation.

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Definitions:

Independent Contractors

Individuals or entities that perform work or services for another entity as non-employees, under terms specified in a contract.

Just Cause

A legal standard requiring employers to have fair and genuine reasons for disciplinary actions or termination of employment.

Financial Difficulties

Situations where an individual or entity struggles to meet financial obligations such as debt repayments, often leading to insolvency or bankruptcy.

Just Cause

A legally sufficient reason for a decision or action, especially in the context of employment termination, indicating that the dismissal was fair and reasonable.