Which of the Following Entity Characteristics Are Generally Key Drivers

question 44

Multiple Choice

Which of the following entity characteristics are generally key drivers for small business owners in deciding which entity to choose?

• A) Double taxation.
• B) Required accounting period.
• C) Liability protection.
• D) Double taxation and required accounting period.
• E) Double taxation and liability protection.

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Definitions:

Common Share

A type of security that represents ownership in a corporation, entitling the holder to vote at shareholders' meetings and to receive dividends.

Syndicate

A group of underwriters formed to reduce the risk and help to sell an issue.

Group of Underwriters

A team of financial institutions or individuals that jointly take on the risk of issuing new securities by purchasing them from the issuer and selling them to the public.

Reduce Risk

Strategies and measures employed by individuals or companies to minimize the exposure to financial loss or operational failures.