There Are Several Benefits to Incorporating a Business

question 8

Multiple Choice

There are several benefits to incorporating a business. Some of those benefits are:

• A) A tax deferral is available if the shareholder requires the corporation's profits for personal use in the year; the shareholder may participate in a registered pension plan through the corporation; and dividend payments may be deferred until after a shareholder has retired.
• B) There is greater flexibility to bring family members on board as owners; non-taxable benefits may be provided to the shareholder; and dividend distributions are deductible for tax purposes.
• C) Lower tax rates are often recognized; the shareholder may receive compensation; and the corporation offers preferable tax rates on the business' investment income.
• D) The shareholder may choose when they will receive dividend income from the corporation; a capital gains deduction may be available if conditions are met when shares are transferred to the shareholder's children; and active business income
• Under $500,000 is eligible for a lower tax rate.

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Definitions:

Labor Power

The ability of workers to negotiate the value of their work and conditions of employment, often through collective bargaining.

Taft-Hartley Amendments

A federal legislation from 1947 that limited the functions and authority of labor unions within the United States.

National Health

A conceptual focus on the health and wellbeing of a nation's population, often relating to public health policies and systems.

Sole Authority

The exclusive power or right to decide, act, or control a particular situation or organization, without needing approval or consent from others.