Which of the Following Corporate Characteristics Is a Disadvantage of a Corporation

question 251

Multiple Choice

Which of the following corporate characteristics is a disadvantage of a corporation?

• A) Stockholders have limited liability.
• B) A corporation has a continuous life.
• C) There is no mutual agency between the stockholders and the corporation.
• D) Earnings of a corporation may be subject to double taxation.

Define key tax concepts including proportional, regressive tax systems, and the distinction between marginal and average tax rates.

Apply knowledge of tax law to compute tax liabilities and taxable income for various scenarios.

Detail the eligibility criteria for filing specific tax forms, e.g., Form 1040EZ.

Outline the ethical and professional standards outlined in Circular 230 for tax preparers.

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Definitions:

Conditioned Response

A conditioned reaction to a once neutral stimulus that has been paired with an unconditioned stimulus.

Acquisition

The initial stage of learning or conditioning in which a response is established or a skill is begun to be learned.

Contiguity

In psychology, contiguity refers to the closeness or proximity in time or space between two events or stimuli, often associated with classical conditioning.

Classical Conditioning

The phenomenon where a response, initially elicited by a second stimulus, is later elicited by the first stimulus alone, due to the repeated association of the two stimuli.