When a Business Is Operated as an S Corporation, a Disadvantage

question 39

True/False

When a business is operated as an S corporation, a disadvantage is that the shareholder must pay the tax on his or her share of the S corporation's income even though the S corporation did not distribute the income to the shareholder.

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Definitions:

Dual Processing

Refers to the principle that our mind operates on two levels: a conscious, deliberate mode, and an unconscious, automatic mode.

Parallel Processing

In cognitive science and computer science, it refers to the ability of the brain or a computer to process multiple tasks simultaneously.

Inattentional Blindness

Inattentional blindness is the psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight due to focusing attention on another task or aspect.

Dual Processing

The principle that information is often simultaneously processed on separate conscious and unconscious tracks in the human mind.