Which of the Following Legal Entities Are Generally Classified as C

question 17

Multiple Choice

Which of the following legal entities are generally classified as C corporations for tax purposes?

• A) Sole proprietorship.
• B) S corporations.
• C) Limited Liability Company.
• D) Limited partnerships.
• E) None of the choices are correct.

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Definitions:

Maker

In terms of financial instruments, the maker is the party that creates or issues the instrument, such as a check or promissory note.

Payee

The party in a financial transaction who receives payment.

Note Receivable

A written promise that entitles the holder to receive a specified amount of money from another party at a future date.

Interest

A charge for borrowed money, generally a percentage of the amount borrowed.