EZ Hauling Holds Itself Out to Customers as Being a Corporation

question 20

Multiple Choice

EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely​

• A) ​a corporation by estoppel.
• B) ​a de facto corporation.
• C) ​a de jure corporation.
• D) ​a benefit corporation.

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Definitions:

Straight-Line Method

A method of calculating depreciation for accounting purposes, allocating a uniform expense amount to each year of an asset's useful life.

Depreciated

A decrease in the value of an asset over time, often due to wear and tear or obsolescence, which can be used for tax deductions.

Primarily Personal Property

Items or assets that are mainly used for personal, non-business purposes, which may include vehicles, furniture, and electronics.

Net Loss

The amount by which expenses exceed revenues, often deductible from other sources of income on a tax return.