Ray is starting a new business with a friend and trying to decide between a C corporation, S corporation, and partnership. Which of the following statements regarding his decision is correct?
A. S corporations pay taxes on their current year income.
B. A shareholder in a C corporation is taxed on his or her share of corporate income.
C. A partner in a partnership is taxed on his or her share of partnership income.
D. An S corporation owner must pay income taxes only on the salary received.
Answer: C
You might also like to view...
When preparing review sections in a report,
A) always write them in narrative form, not as lists. B) use multiple review sections if the report is long and complex. C) introduce new facts and information to support the review points. D) make it clear that readers can skip them if they want to. E) include illustrations as often as possible.
Which of the following is in place when a producer, dealer, wholesaler, retailer, or customer interacts with more than one type of channel?
A) dual or multiple distribution system B) intermediation C) knowledge management D) supply chain management E) vertical marketing system
Which of the following statements about Roth IRAs is false?
A) Contributions made to a Roth IRA are not tax deductible, but are tax-free when withdrawn. B) Withdrawals of contributions made at any time are not subject to taxation. C) Withdrawals of investment earnings are not subject to taxation as long as the taxpayer is at least 55 years old and the Roth IRA has existed for at least five years. D) Withdrawals of investment earnings are not subject to taxation if they are used to (up to $10,000 worth) to buy a first home, and if the Roth IRA has existed for at least five years.
Although there is a formula defining Bayes' law, you can also use a probability tree to conduct calculations
Indicate whether the statement is true or false