An S Corporation ________

question 14

Multiple Choice

An S corporation ________.

• A) combines limited liability of a corporation with the federal taxation advantages of a partnership
• B) does not have such advantages as limited liability of investments
• C) does not split the ownership into smaller units
• D) files income tax returns in a country other than the country of operation
• E) combines limited ownership of a proprietorship with the capital-raising options of a corporation

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Definitions:

Profitability

The ability of a business to generate earnings over its costs and expenses, indicating its financial health and efficiency.

Cost Effectiveness

The measure of how economically resources are converted into results, often used to assess the efficiency of different investments.

Operating Assets

Assets employed in the day-to-day operations of a business that are expected to generate income.

Generates Revenues

The process of bringing in income from business activities, such as sales of goods and services.