A Flow-Through Entity's Primary Characteristic Is That Income Escapes Taxation

question 79

True/False

A flow-through entity's primary characteristic is that income escapes taxation at the entity level and flows-through to be taxed at the ownership level.

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Definitions:

Adversarial System

A legal system where two opposing parties present their arguments and evidence in court, and a neutral third party (judge or jury) adjudicates.

Concerned

Reflects a state of being worried, anxious, or interested about something.

Ethical Misconduct

Actions or behavior by an individual or organization that violates ethical standards or principles.

Frequently Discipline

A regular and consistent application of rules and penalties to maintain order and correct behavior.