A corporation offers more flexibility than a limited liability company (LLC) in terms of tax treatment.
Answer the following statement true (T) or false (F)
False
Like a corporation—and as its name implies—an LLC offers its owners limited liability for the debts of their business. But it offers more flexibility than a corporation in terms of tax treatment; in fact, one of the most interesting characteristics of an LLC is that its owners can elect to have their business taxed either as a corporation or a partnership. See 6-1: Business Ownership Options: The Big Four
You might also like to view...
In most cases, the mere act of making a purchase decision
A) provokes buyer's remorse 99 percent of the time. B) automatically transforms a customer into a brand-loyal consumer. C) triggers a post-decision evaluation by the consumer. D) demonstrates the direct relationship between advertising and sales. E) proves that firms must meet higher order needs before satisfying lower order needs.
Which of the following is currently a negative factor for foreign investment in Russia?
A. The Russian population is poorly educated. B. Russian consumer markets are saturated, offering few opportunities for goods from U.S. companies to sell well. C. Russia is known for corruption, creating ethical dilemmas for firms. D. Russian consumers have little interest in online shopping. E. Few Russians have access to the Internet due to heavy regulation.
Mara is conducting a disciplinary investigation of an employee. Which of the following is NOT one of the questions she might ask when determining if there are extenuating circumstances?
A. Were conflicting orders given by different supervisors? B. Does anybody have reason to want to "get" this employee? C. Have all managers applied this rule consistently? D. Was the employee provoked by a manager or another employee?
Lighthouse Sail Makers manufactures sails for sailboats
The company has the capacity to produce 35,000 sails per year and is currently producing and selling 30,000 sails per year. The following information relates to current production: Sales price per unit $185 Variable costs per unit: Manufacturing $60 Selling and administrative $22 Total fixed costs: Manufacturing $700,000 Selling and administrative $300,000 The fixed manufacturing costs increase by $100,000 for every 500 units produced beyond the maximum capacity of the plant. If a special pricing order is accepted for 5,500 sails at a sales price of $160 per unit, and if the order requires no variable or fixed selling and administrative costs, what is the effect on operating income? A) Operating income increases by $450,000. B) Operating income decreases by $450,000. C) Operating income increases by $550,000. D) Operating income decreases by $550,000.