Which of the Following Entities Can Provide Fringe Benefits to Owner/employees

question 54

Multiple Choice

Which of the following entities can provide fringe benefits to owner/employees that are not taxable to the owner/employee?
I.Sole proprietorships
II.S corporations
III.Partnerships
IV.Corporations
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• A)Statements I and II are correct.
• B)Statements II, III and IV are correct.
• C)Statements II and IV are correct.
• D)Only statement IV is correct.
• E)Statements I and III are correct.

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Definitions:

Lemon

In the context of markets, a product that is found to be defective only after it has been bought, often used in reference to used cars.

Accord

An agreement, especially one between nations or groups, which outlines the terms and conditions of a mutual understanding or settlement.

Risk-neutral

A condition or attitude where an individual or entity is indifferent to risk when making investment decisions, caring only about the expected outcome without concern for the variability of returns.

Risk-loving

Refers to individuals or entities that prefer or are willing to take more risks, often for the possibility of higher returns.