Explain the Difference Between a Sub-Chapter "S" Corporation and a Sub-Chapter

question 12

Essay

Explain the difference between a sub-chapter "S" corporation and a sub-chapter "C" corporation.

---

Definitions:

Inventory Turnover

This is a ratio showing how many times a company's inventory is sold and replaced over a period, usually a year, indicating the efficiency of inventory management.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Interest-Burden Ratio

A financial metric that shows how much of a company's income is consumed by interest expenses.