When a Business Is Operated as an S Corporation, a Disadvantage

question 39

True/False

When a business is operated as an S corporation, a disadvantage is that the shareholder must pay the tax on his or her share of the S corporation's income even though the S corporation did not distribute the income to the shareholder.

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Definitions:

Hist/o

A prefix related to tissue, used in words related to the study of tissue structure, diseases, and conditions.

Path/o

A prefix used in medical terminology indicating a disease or pathological process.

Physi/o

A prefix in medical terminology that relates to nature or the physical body.

Immune Response

The body's defense mechanism against foreign substances or pathogens, involving recognition, response, and memory components of the immune system.