In Certain Circumstances, C Corporations Can Elect to Be Treated

question 46

True/False

In certain circumstances, C corporations can elect to be treated as flow-through entities.
An S-Corporation election achieves this purpose.

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Definitions:

Performance Measures

Quantitative or qualitative gauges used to compare, track, and assess the effectiveness or productivity of different aspects of an organization.

Income

Money received, especially on a regular basis, for work or through investments.

Assets

Economic resources owned or controlled by a business, expected to produce future benefits, including cash, inventory, equipment, and real estate.

Investment Center Residual Income

The net operating income earned by an investment center minus a charge for the capital used to generate those profits, measuring performance beyond generating profits.