Which of the Following Statements Regarding Alternative Business Forms Is

question 53

Multiple Choice

Which of the following statements regarding alternative business forms is true?

• A) If an S corporation's election terminates, the corporation is forced to liquidate.
• B) Some states treat S corporations as taxable corporations for purposes of corporate franchise taxes.
• C) Generally, the transfer of property to a new partnership in exchange for a partnership interest is a taxable event.
• D) The owners of a new business should be indifferent between operating as an S corporation and a partnership.

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Definitions:

Works Outside

Employment or activities performed outside of traditional office environments, which can include outdoor labor, remote work, or fieldwork.

Without Pay

Refers to a situation or condition in which work or service is provided by an individual without receiving financial compensation.

Cohabiting Man

An adult male who lives with his romantic partner without being legally married to them, reflecting a form of diverse family structure.

Socially Approved

Refers to behaviors, practices, or ideas that are widely accepted and endorsed by society.