Subchapter S Corporations

question 12

Multiple Choice

Subchapter S corporations

• A) have the disadvantage of double taxation.
• B) require that shareholders report their share of profits on their partnership tax returns.
• C) have the advantage that shareholders can take part in policy and operating decisions.
• D) are entities formed as corporations but are treated essentially as a partnership so the corporation pays no income tax.

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Definitions:

Theory X Manager

A management style based on the assumption that employees are inherently lazy and will avoid work if they can, necessitating a controlling and directive leadership style.