Which of the Following Statements Regarding Alternative Business Forms Is

question 53

Multiple Choice

Which of the following statements regarding alternative business forms is true?

• A) If an S corporation's election terminates, the corporation is forced to liquidate.
• B) Some states treat S corporations as taxable corporations for purposes of corporate franchise taxes.
• C) Generally, the transfer of property to a new partnership in exchange for a partnership interest is a taxable event.
• D) The owners of a new business should be indifferent between operating as an S corporation and a partnership.

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Definitions:

Enabling Institutions

Institutions designed to support and facilitate the development and growth of individuals, businesses, or communities.

Spend Money

The action of using monetary resources to purchase goods or services.

Life Expectancy

The average period that a person may expect to live, which can be influenced by various factors including genetic, environmental, and lifestyle choices.

Religious Involvement

Participation or engagement in activities, beliefs, or practices related to a particular faith or religion.