An S Corporation

question 42

Multiple Choice

An S corporation

• A) is similar to a partnership in that it carries unlimited liability.
• B) is a separate legal entity that is treated like a normal corporation.
• C) has all the organizational benefits of a corporation and its income is only taxed once.
• D) All of the options

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Definitions:

Article III

Refers to the third article of the United States Constitution, which establishes the judicial branch of the federal government.

U.S. Constitution

The supreme law of the United States establishing the framework of the national government and the fundamental rights of citizens.

U.S. Supreme Court

The highest court in the United States, serving as the ultimate arbiter of disputes and interpreter of federal law and the Constitution.

Lower Courts

Courts that have jurisdiction at the first level in the legal system, often responsible for hearing initial cases and trials.