Which of the Following Is an Advantage of a C

question 54

Multiple Choice

Which of the following is an advantage of a C Corporation?

• A) Setting up and maintaining one is more difficult than for a sole proprietorship or a partnership.
• B) Stock is liquid if traded on a major stock exchange.
• C) Business losses cannot be deducted against the shareholders' other sources of income.
• D) Income is subject to double taxation.
• E) Small shareholders typically have little voice in the management of the firm.

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Definitions:

Standard Hours

The expected time it should take to complete a specific task or produce a given quantity of goods under normal conditions.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Operating Income

The profit realized from a business's operations after deducting operating expenses from gross profit.

Dividends

Financial distributions to a corporation's shareholders, usually coming from the business's earnings.