Which of the following statements regarding alternative business forms is true?

A. Some states treat S corporations as taxable corporations for purposes of corporate franchise taxes.
B. If an S corporation's election terminates, the corporation is forced to liquidate.
C. Generally, the transfer of property to a new partnership in exchange for a partnership interest is a taxable event.
D. The owners of a new business should be indifferent between operating as an S corporation and a partnership.


Answer: A

Business

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