Which of the Following Is Not an Advantage to Maintaining

question 126

Multiple Choice

Which of the following is not an advantage to maintaining an ongoing relationship with your lawyer?

• A) The lawyer will know and understand you and your business.
• B) The lawyer will be able to provide legal advice more efficiently, thereby reducing your legal costs.
• C) The lawyer will be able to customize legal advice so it will be even more useful to you.
• D) The lawyer will automatically track your business activities so that he or she can provide constant advice and guidance.
• E) The lawyer will be motivated to do even more for the client.

---

Definitions:

Subchapter S Corporation

A type of corporation created through an IRS tax election to pass corporate income, losses, deductions, and credits through to shareholders for federal tax purposes.

Schedule K-1

A tax document used to report the income, losses, and dividends of a partnership or S corporation's partners or shareholders.

Separately Stated

Items on a partnership or S corporation tax return that must be reported separately on the owners' personal tax returns.

Taxable Dividend

A dividend paid to shareholders that is subject to income taxation.