Which Form of Business Organization Allows Shareholders to Be Taxed

question 66

Multiple Choice

Which form of business organization allows shareholders to be taxed as partners while still retaining their limited liability status?

• A) Corporation
• B) Partnership
• C) S Corporation
• D) Sole Proprietorship

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Definitions:

Statute of Frauds

A legal principle requiring certain contracts, such as those for the sale of land, to be in writing to be enforceable.

Verbal Contract

A legal agreement made through spoken words instead of written documentation, though harder to prove.

Indefinite Period

A time span without a specified end date, characterized by an absence of defined duration.

Part Performance

A doctrine that permits the courts to enforce an unwritten contract concerning land where certain conditions have been met.