Which of the Following Statements Regarding the Tax Treatment of Start-Up

question 79

Multiple Choice

Which of the following statements regarding the tax treatment of start-up losses is false?

• A) Start-up losses of a business organized as a C corporation create NOL carryforwards, deductible in future years when the business generates a profit.
• B) Start-up losses of a business organized as a partnership are deductible by the partners, potentially generating immediate tax savings.
• C) Start-up losses of a business organized as an S corporation create NOL carryforwards, deductible in future years when the business generates a profit.
• D) Start-up losses of a business organized as an S corporation are deductible by the shareholders, potentially generating immediate tax savings.

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Definitions:

Oval Window

A membrane-covered opening that leads from the middle ear to the vestibule of the inner ear, where sound vibrations are transmitted.

Cochlea

A spiral-shaped, fluid-filled organ in the inner ear that is responsible for converting sound vibrations into nerve impulses that the brain can interpret as sound.

Inner Ear

The inner ear is the deepest part of the ear, containing the cochlea, vestibule, and semicircular canals, which are crucial for hearing and balance.

Hertz

The unit of frequency in the International System of Units (SI), defined as one cycle per second.