Hudson and Ilka Want to Market a New Line of Kayaks

question 21

Multiple Choice

Hudson and Ilka want to market a new line of kayaks and related gear under the brand name Journeys as a corporation-Journeys,Inc.To avoid income taxes at the corporate level,they should form

• A)a C corporation.
• B)a close corporation.
• C)an S corporation.
• D)a private corporation.

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Definitions:

Tenancy in Partnership

A form of co-ownership where partners in a business own property together, with rights and responsibilities defined by the partnership agreement.

Uniform Partnership Act (UPA)

The original partnership statute written by the National Conference of Commissioners on Uniform State Laws.

Monthly Wages

Regular payments made to employees for their work on a monthly basis.

Capital Contributions

Funds or assets provided by the owners or partners of a business to finance its operations, expansion, or other capital needs.