S Corporations Are

question 35

Multiple Choice

S corporations are
I. always preferable to C corporations
II. not available to less than 10 persons who wish to start them
III. preferable for many closely-held business ventures
IV. taxed like partnerships, thus eliminating corporate level taxation
V. no longer available under the new tax law

• A) III only
• B) IV and V
• C) II, III, IV, and V
• D) II and III
• E) III and IV

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Definitions:

Interdependent

Mutually dependent; where two or more entities rely on each other.

Obedience

The act of following orders or instructions from an authority figure, or conforming to rules or laws.

Solomon Asch

A psychologist best known for his research on social conformity.

Leon Festinger

A social psychologist known for his theory of cognitive dissonance, which describes the discomfort felt by an individual when holding contradictory beliefs or values.