Identify a Disadvantage of Being an S Corporation

question 32

Multiple Choice

Identify a disadvantage of being an S corporation.

• A)Estates can be shareholders.
• B)Losses flow through immediately to the shareholders.
• C)The AMT on corporations is avoided.
• D)Tax-exempt income flows through as excludible to shareholders.
• E)None of the above is a disadvantage of the S election.

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Definitions:

Industrial Engineering

A branch of engineering that focuses on the optimization of complex processes, systems, or organizations by improving productivity, efficiency, and effectiveness.

Empower Workers

The practice of giving employees more autonomy, authority, and control over their work processes, decisions, and resources.

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Frameworks that outline the specific skills, behaviors, and attitudes that contribute to effective performance within an organization or job role.

General-Duty Clause

A provision within some safety and health regulations that mandates employers to provide a work environment free from recognized hazards that could cause harm to employees.