A New Start-Up Corporation Is Formed by Three Individuals

question 95

True/False

A new start-up corporation is formed by three individuals.They expect the corporation will experience losses in its first few years.The shareholders will prefer to have the corporation taxed as a C corporation rather than making an S election.

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Definitions:

Restructuring Strategy

A corporate management term referring to the act of reorganizing the legal, ownership, operational, or other structures of a company to make it more profitable or better organized for its present needs.

Merger

The combination of two or more companies into a single entity, often to leverage synergies, expand markets, or enhance efficiencies.

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often occasioned by bankruptcy or dissolution.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.