Explain a "Contractual Write-Off

question 41

Essay

Explain a "contractual write-off."

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Definitions:

Corporate Charter

A legal document establishing a corporation, outlining its structure, and defining its rights and duties.

Corporate Board

A group of individuals elected by shareholders to oversee and make decisions on behalf of a corporation.

S-corp

A special designation for a corporation in the United States that allows profits and losses to be passed through to shareholders to avoid double taxation on corporate income.

C-corp

A type of corporation in the United States that is taxed separately from its owners, as defined under subchapter C of the Internal Revenue Code.