The Internal Revenue Service (IRS)recognizes the Separate Existence of a Proprietorship

question 84

True/False

The Internal Revenue Service (IRS)recognizes the separate existence of a proprietorship from its owner.

---

Definitions:

Shareholders

Entities or individuals that own a part of a corporation through their stock holding, which entitles them to a share of the company’s profits and a say in its operations.

Surrender

In legal and financial contexts, to surrender means to voluntarily give up a right, position, property, or claim, often in exchange for something else or to end a dispute.

Preferred Stock

A type of stock that gives its holders precedence over common stockholders in terms of dividends and claims on assets, but typically does not have voting rights.

Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the company's board of directors.