Which of the Following Is Not a Correct Statement Regarding

question 214

Multiple Choice

Which of the following is not a correct statement regarding the advantage of the partnership entity form over the C corporation form?

• A) A partnership typically has easier administrative and filing requirements than does a C corporation.
• B) Partnership income is subject to a single level of taxation? corporate income is double taxed.
• C) Partnerships may specially allocate income and expenses among the partners, provided the substantial economic effect requirements are met? corporate dividends must be proportionate to shareholdings.
• D) Partners in a general partnership have less personal liability for entity claims than shareholders of a C corporation.
• E) All of the above are advantages of partnership taxation.

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Definitions:

Decentralized Decision

A management strategy where decision-making powers are distributed among various levels of the organization rather than being concentrated at the top.

Narrow Span

a management structure where a supervisor oversees a small number of subordinates, allowing for close supervision and control.

Organizational Complexity

relates to the various interconnected components within an organization, including its structure, processes, and dynamics that determine its level of intricacy.

Mechanistic Structure

A highly formal organizational structure characterized by rigid hierarchy, clear divisions of labor, and centralized decision-making.