Which of the Following Statements Regarding Alternative Business Forms Is

question 53

Multiple Choice

Which of the following statements regarding alternative business forms is true?

• A) If an S corporation's election terminates, the corporation is forced to liquidate.
• B) Some states treat S corporations as taxable corporations for purposes of corporate franchise taxes.
• C) Generally, the transfer of property to a new partnership in exchange for a partnership interest is a taxable event.
• D) The owners of a new business should be indifferent between operating as an S corporation and a partnership.

---

Definitions:

Conifers

A group of gymnosperm plants characterized by seed-bearing cones and needle-like or scale-like leaves, including pines and spruces.

Horsetail

A seedless vascular plant having only one genus (Equisetum) in existence today; characterized by rhizomes, scalelike leaves, strobili, and tough, rigid stems.

Sporophyte

The diploid, spore-producing phase of a plant that alternates with the haploid gametophyte in the life cycle.

Angiosperms

Flowering plants that produce seeds enclosed within a fruit, representing the most diverse group of plants on Earth.