Flow-Through Entities Include All of the Following Types of Entities

question 30

Multiple Choice

Flow-through entities include all of the following types of entities except

• A)partnerships.
• B)C corporations.
• C)S corporations.
• D)limited liability companies (LLCs).

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Definitions:

WACC

Stands for Weighted Average Cost of Capital, a measure that gives an idea of a company's cost of capital from all sources, including stocks and bonds.

Tax Rate

The specific percentage at which income is taxed for individuals and corporations.

Bonds

Bonds are fixed-income instruments that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share of the company's profits through dividends.