Select the best answer.Which of the following statements regarding various entities is true?O A. A business entity with only one owner is classified as a corporation or is disregarded.O B. A disadvantage of a pass-through entity is double taxation.OC. By default, an eligible entity that has a single member will be treated as a limited partnershipPartnerships are taxpaying entities, because tax attributes pass through to the individualpartners.O D.Submit Answers100% Complete

A partnership is a type of business entity in which two or more individuals, entities, or…

Select the best answer. Which of the following statements regarding various entities is true? O O O A. A business entity with only one owner is classified as a corporation or is disregarded. B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited partnership_ Partnerships are taxpaying entities, because tax attributes pass through to the individual partners. D.

Select the best answer. Which of the following statements regarding various entities is true? O O O A. A business entity with only one owner is classified as a corporation or is disregarded. B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited partnership_ Partnerships are taxpaying entities, because tax attributes pass through to the individual partners. D.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 16DQ

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Select the best answer. Which of the following statements regarding various entities is true? O O O A. A business entity with only one owner is classified as a corporation or is disregarded. Question Q 10 B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited partnership. Partnerships are taxpaying entities, because tax attributes pass through to the individual partners. O D. Submit Answers 100% Complete
If you were seeking an entity with the most favorable tax treatment regarding (1) the number of owners allowed, (2) the flexibility to select your accounting period, and (3) the availability of preferential capital gains rates when selling your ownership interest, which entity should you decide to use? A. C corporation. B. Sole proprietorship. C. Partnership. D. S corporation.
Select the best answer. Which of the following statements regarding the characteristics of various entities is false? O O B. A general partnership is a pass-through entity. The income of a sole proprietorship is taxed to its owner because it has no separate legal entity from its owner. D. State taxability for S corporations makes no distinction between S and C corporations. A. A C corporation enjoys no special tax status. O C. O Question Q 13 Submit Answers 100% Complete
Which of the following statements is true? a. S corporations are typically subject to one level of tax at the corporate level. b. Partnerships are typically subject to one level of tax at the partner level. c. LLCs and LLPs must be taxed as C corporations. d. REITs typically pay tax at the entity level. e. All of the above are true.
4. General professional partnerships (GPP) are exempted from taxation because: S1: Partners are liable in their own capacity S2: GPP is a pass-through entity only S3: GPP is not a corporation Which is false? Group of answer choices S3 S2 None are false S1 5. Professional tax collected by Treasurers of local government units is an example of: Group of answer choices Privilege tax Income tax Specific tax Direct tax
Select the best term for each definition below. Definitions Terms a. Shareholders can lose no more than the amount they invest in the company. b. Corporate earnings are taxed twice—at the corporate level and individual shareholder level. c. Like an S corporation, but there are no limitations on the number of owners as in an S corporation. d. Traces the line of authority within the corporation. e. Allows for legal treatment as a corporation, but tax treatment as a partnership. f. Has stock traded on a stock exchange such as the New York Stock Exchange (NYSE). g. The first time a corporation issues stock to the public. h. Describes (a) the nature of the firm’s business activities, (b) the shares to be issued, and (c) the composition of the initial board of directors.
Give typing answer with explanation and conclusion Which of the following entities does not have limited liability? Select one: a. General partnership. b. LLC taxed as a disregarded entity. c. S corporation. d. All of the above have limited liability.
Check my answer. Can a sole proprietor form as a single-member limited liability company (LLC)? If so, how would such an LLC be taxed? Under the check-the-box Regulations, an unincorporated entity with only one owner can file as an LLC and would be classified as a disregarded entity. LLC’s do not typically pay federal income taxes, but the LLC would need to report and pay employment and excise taxes.
Choose the correct. Which of the following is not a reason for the popularity of partnerships as a legal form for businesses?a. Partnerships may be formed merely by an oral agreement.b. Partnerships can more easily generate significant amounts of capital.c. Partnerships avoid the double taxation of income that is found in corporations.d. In some cases, losses may be used to offset gains for tax purposes.
Why would smaller partnerships and other businesses for that matter use only the tax basis of accounting, which does not follow GAAP?
4) Identify which of the following statements is true. A) The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation. B) A partnership can elect to be taxed as a corporation under the check-the-box regulations. As a corporation, an S election can be made. C) For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for an existing C corporation to obtain many of the tax benefits of being taxed as a partnership. D) All of the above are true. 5) Identify which of the following statements is true. A) A partnership can be an S corporation shareholder. B) A nonresident alien can be an S corporation shareholder. C) An S corporation can have more than 100 individual shareholders, since families are treated as a single shareholder. D) All of the above are false. 8) Identify which of the following…
If you were starting a business, what tax considerations might cause youto prefer to set it up as a proprietorship or a partnership rather than as acorporation?