In Everyday "Real" Life, Most of Us Use _____ Concepts

question 143

Multiple Choice

In everyday "real" life, most of us use _____ concepts.

• A) mental
• B) artificial
• C) natural
• D) formal

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Definitions:

Flow-Through Entity

A legal business entity where income flows through to investors or owners; the entity itself is not taxed but the individuals receiving the income are.

C Corporation

A legal structure for a corporation where the owners, or shareholders, are taxed separately from the entity.

Sole Proprietorship

A business structure in which one individual owns all of the company's assets, is responsible for its debts, and reports its business income on their personal tax return.

Non-Profit

An organization dedicated to furthering a particular social cause or advocating for a shared point of interest and does not distribute its surplus funds to owners or shareholders.