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.

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Definitions:

Responsiveness

The speed and efficiency with which an organization or individual reacts to changes or customer needs.

Texas A&M

A renowned public research university located in College Station, Texas, known for its contributions to education, research, and military service.

Direct Trade-Off

A situation in decision making where increasing one benefit requires the concurrent decrease of another benefit, illustrating the need to balance competing values or priorities.

Labor Intensive

A type of business or manufacturing process that requires a high amount of human labor as opposed to automated machinery or technology.