Identify a Disadvantage of an S Corporation

question 98

Multiple Choice

Identify a disadvantage of an S corporation.

• A)Generally,trusts cannot be shareholders.
• B)Losses flow through to the shareholders.
• C)The AMT on corporations is avoided.
• D)Tax-exempt income flows through to the shareholders.
• E)None of the above is a disadvantage of the S election.

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Definitions:

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Brands that have achieved a high level of recognition, loyalty, and preference among their target market, often leading to sustained profitability.

Brand Equity

The value and strength of a brand as perceived by consumers, derived from experiences, associations, and perceptions, contributing to loyalty and premium pricing capabilities.

Millions Of Dollars

A monetary unit used to describe large sums of money, typically used in financial reports, budgets, or to denote the scale of a project or value of an entity.

Profitability

A financial metric that measures the degree to which a company or business activity makes more money than it spends, indicating financial success.