Can-Do Enterprises Suffered a Shock When George White, Its President

question 53

Multiple Choice

Can-Do Enterprises suffered a shock when George White, its president and CEO, was killed while skiing in Chile. Nevertheless, the organization was able to continue operations smoothly. Which of the following was most likely the reason for the smooth transition?

• A)succession planning
• B)organizational chart
• C)delegation strategy
• D)executive life insurance

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Definitions:

Partnerships

An official business operation conducted by two or more people, with a shared management system and profit allocation.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction.

Limited Liability Company

A commercial foundation that unifies a corporation's limited liability with the direct tax benefits characteristic of partnerships or sole proprietorships.

Tax Election

A choice allowed under tax law that enables taxpayers to determine how they want certain tax rules to apply to them.