B&G, Inc. A Year Ago, Kevin Went to Work for B&G, Inc.He

question 161

Multiple Choice

B&G, Inc.
A year ago, Kevin went to work for B&G, Inc.He has worked for the finance department ever since he started.He noticed that the corporation was only taxed as though it were a partnership.This was something that he found very odd when he first started working for the company, but he later realized it was a fairly common practice.He recognized that this was one of the advantages of this type of corporation.
While the job was challenging, Kevin was not happy.He wanted to work for a company whose main goal was to provide service to the community, not to make a profit.However, Kevin felt that, considering his present financial situation, he had to continue working for B&G, Inc.A week later, Kevin discovered there was going to be a merger between B&G, Inc.and one of its major competitors.Kevin's boss informed him that he would be getting a promotion and a raise.While he was excited about making more money, he still was not happy.He knew then that he would not be working for the company for long.
-Refer to B&G, Inc.What type of organization was Kevin considering switching to?

• A) limited-liability corporation
• B) partnership
• C) S-corporation
• D) not-for-profit corporation
• E) closed corporation

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Definitions:

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or entity, providing an overview of a financial situation over a specific period.

Physical Existence

The actual, tangible presence of an asset, as opposed to intangible assets or rights.

External Audit

An independent examination of financial records and statements, conducted by an outside firm, to ensure accuracy and compliance with accounting standards.

Financial Statements

Official documentation detailing the monetary transactions and financial standing of a company, person, or different organization.