Which of the Following Statements Is True of a Corporation

question 69

Multiple Choice

Which of the following statements is true of a corporation?

• A) An S-corporation can have no more than 500 stockholders.
• B) All profits of an S-corporation do not pass directly to the stockholders as they would pass to the partners in a partnership.
• C) Profits earned in C-corporations are taxed only once at the corporate tax rate.
• D) S-corporations have better access to capital compared to C-corporations.

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Definitions:

Equilibrium Price

The cost where the supply of goods meets the demand for those goods.

Tax Revenues

The funds collected by governments through the process of levying taxes.

Point Elasticity

The measure of how much the quantity demanded of a good responds to a change in price at a specific point on the demand curve.

Producer Surplus

The difference between the amount a producer is paid for a good and the minimum amount they are willing to accept for producing it.