Which of the Following Benefits Does Not Occur When Owner-Shareholders

question 63

Multiple Choice

Which of the following benefits does not occur when owner-shareholders accumulate earnings of their closely-held corporations at the entity level and later sell their stock at an increased value?

• A)Deferral of shareholder tax until the year of sale.
• B)Conversion of ordinary income into capital gain.
• C)Increase in corporate capitalization and reduction in debt-equity ratio.
• D)All of the above occur.

Distinguish between various relationship types in databases and their practical implications.

Understand the organizational structure of databases, including key concepts like fields, records, and tables.

Understand different types of databases and their suitability for various tasks.

Recognize the structure and components of databases (e.g., tables, records, fields).

---

Definitions:

Uniform Partnership Act

A set of laws adopted by states that governs the formation, operation, and dissolution of partnerships.

Model Business Corporation Act

A set of model laws prepared to provide a standard for state corporation statutes and promote uniformity in business law among the states.

Express Agreement

A contract in which the terms and intentions of the parties are stated clearly, either orally or in writing.

Day-to-day Business

The routine activities and operations conducted by a business or organization on a daily basis.