If a Corporation Elects to Be Taxed as an S

question 51

True/False

If a corporation elects to be taxed as an S corporation,then it can avoid the corporate tax.However,its stockholders will have to pay personal taxes on the firm's net income.

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Definitions:

Market Oriented Economy

An economic system where decisions on production and consumption of goods and services are based on voluntary exchange in markets, with minimal government intervention.

State Would Wither Away

A Marxist theory suggesting that after the establishment of a classless society, the need for a government or state will diminish and eventually disappear.

Capitalists

Individuals or entities that own capital goods or investments and use them to generate wealth through production, distribution, and the sale of goods and services.

Embraced Capitalism

The process of adopting capitalist economics and practices, characterized by private ownership, profit motive, and market competition.