Which of the following criteria must be met for a company to be an S corporation?
A) Shareholders must be other corporations or partnerships.
B) Nonresident aliens cannot be shareholders.
C) The corporation must have more than 100 shareholders.
D) The corporation must have more than one class of stock.
B
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The Sales Discount account is a(n)
a. revenue account; b. contra-revenue account; c. expense account; d. contra-expense account; e. contra-asset account
When a purchasing agent benefits personally by accepting payment from a vendor, the purchasing agent is guilty of which of the following?
a. Performing kiting. b. Committing embezzlement. c. Receiving kickbacks. d. Stealing company assets.
Jack and Jill were living together. Jack wanted to start a small retail store, but did not have good credit. Jill, whose credit was excellent, signed loan agreements with Jack so he could borrow the money to start the business. Jack used business cards
that stated he was the "owner" of the business. He and Jill filed separate tax returns. Jack stated he was self-employed and claimed the business was a sole proprietorship. The money that was earned from the store was placed into a joint checking account owned and used by Jack and Jill. When there were significant decisions to be made about the business, such as deciding to franchise the business, the decision was made jointly by Jack and Jill. Five years after the business was started, Jill left Jack. She claimed she was entitled to one-half the business's profits since she and Jack were partners. Jack disagreed and claimed they never had a partnership. Discuss Jill's claim.
The independence hypothesis allows for bankruptcy and agency costs
Indicate whether the statement is true or false