Which of the Following Statements Is True About Companies Pursuing

question 60

Multiple Choice

Which of the following statements is true about companies pursuing a click-only business strategy?

• A) These companies approach business activities by operating physical locations.
• B) These companies operate in both physical and virtual arenas.
• C) These companies conduct business electronically in cyberspace.
• D) These companies are only involved in export business activities.
• E) These companies choose to operate their business activities solely in the traditional manner.

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Definitions:

Flow-Through Entities

Business entities that pass their income, deductions, and credits down to their owners for tax purposes, avoiding taxation at the corporate level.

LLC's

Stands for Limited Liability Companies, a business structure in the U.S. that offers personal liability protection to its owners but can be taxed as a partnership.

S Corporations

A special designation of corporation that allows income to be taxed only at the shareholder level, avoiding double taxation.

Flow-Through Entities

Entities through which income flows to the owners or investors, avoiding corporate income tax.