Question

In: Finance

1. All of the following are factors that contribute to the business entity selection process EXCEPT:...

1. All of the following are factors that contribute to the business entity selection process EXCEPT: Reporting requirements and taxation. Ease and cost of formation. Complexity of management and governance. All of the above are factors that should be considered. Flag this Question Question 2 1 pts Which of the following is not a business entity type used in the United States? C Corporation. Family Limited Partnerships. Family Proprietorship. S Corporation. Flag this Question Question 3 1 pts Which of the following is an advantage of a sole proprietorship? Ease to sell business assets. Limited liability. Business income is not subject to self-employment tax. All of the above. Flag this Question Question 4 1 pts Which of the following is a special type of business entity created under state law with the primary purpose of transferring assets to younger generations? Limited Liability Company (LLC). Family Limited Partnership (FLP). Sole Proprietorship. None of the above. Flag this Question Question 5 1 pts What is the charter document used in the formation of LLC’s? By-laws. Articles of Organization. Organizational mission statement. Articles of incorporation. Flag this Question Question 6 1 pts Which of the following is true of C Corporations? A C Corporation is not allowed to take a tax deduction for dividends distributed to shareholders. The owners’ compensation is considered to be self-employment income. Difficult and time consuming to transfer ownership interests. All of the above are true regarding C Corporations. Flag this Question Question 7 1 pts Which, if any, of the following statements is (are) correct? 1 C corporations have unlimited liability. 2 Sole proprietorships offer limited liability. 1 only. 2 only. Both 1 and 2. Neither 1 nor 2. Flag this Question Question 8 1 pts Which of the following is true of limited liability companies (LLCs)? Capital is easier to raise than in a proprietorship. Can have different classes of ownership interests, which have different rights. Unless stated otherwise, individual owners are protected from personal liability for the organization’s debts and obligations. All of the above. Flag this Question Question 9 1 pts All of the following are true EXCEPT: Both S and C Corporations are taxed at the corporate level, and are therefore, subject to double taxation. S Corporations can only have one class of stock. An LLC with two or more members can elect to be taxed for federal income tax purposes as a partnership, S corporation, or a C corporation. None of the above are correct. Flag this Question Question 10 1 pts Which, if any, of the following statements is (are) correct? 1 C corporations require a registered agent and a federal tax ID number. 2 LLPs are generally owned by licensed professionals. 1 only. 2 only. Both 1 and 2. Neither 1 nor 2.

Solutions

Expert Solution

As per rules I am answering the first 4 subparts of the question

1: All the factors should be considered

(In the formation of business we should consider the reporting requirements which are more stringent in the case of company. Ease and cost of formation is lesser in case of proprietorship and higher in case of company. Complexity of management is higher in case of company but lesser in other forms)

2: Family proprietorship

Family Limited Partnership is one in which the family members contribute money. C corp and S corp are popular forms of corporation.

3: Ease to sell business assets

A sole proprietor can sell off the business assets without complex procedures. He has unlimited liability and Business income is subject to self-employment tax, hence options 2 and 3 are incorrect.

4: FLP

FLP can guarantee that there will be continuous family ownership of the business and the business passes from one generation to the other. LLC and sole proprietorship do not pass the assets to the younger generations.


Related Solutions

What are the factors that contribute to a successful budgeting process?
What are the factors that contribute to a successful budgeting process?
Risk factors in hypertensive patients consist of all of the following EXCEPT? Select all that apply....
Risk factors in hypertensive patients consist of all of the following EXCEPT? Select all that apply. Cigarette smoking Age and sex Current situation of prehypertension (120-125 / 80-85) Excessive dietary intake of potassium Obsesity Correct heparin administration involves: Never rotating injection sites Aspirating to assess for blood vessel entry Always giving heparin by deep IM injection Never rubbing the area after the injection The physician orders Ringer’s lactate solution to replace the fluid losses of a client. While the solution...
All of the following statements regarding business ethics are true, except ________.
  11-All of the following statements regarding business ethics are true, except ________. * A-Ethics does not mean following the law B-It is unethical to generate toxic emissions C-It is ethical to pay a governmental official “off the books” to facilitate a transaction D-Ethics does not mean following the accepted cultures and norms   12-Which of the following is not a business stakeholder? * A-Governments B-Suppliers C-Lecturers D-Creditors   13-Taking advantage over people who are unaware of their purchasing rights...
What are the factors that contribute to the risks of doing business in a country?
What are the factors that contribute to the risks of doing business in a country?
All of the following factors would be expected to increase stroke volume EXCEPT ________. Group of...
All of the following factors would be expected to increase stroke volume EXCEPT ________. Group of answer choices increased end diastolic volume increased afterload decreased end systolic volume increased venous return
All of the following are factors of production except: Group of answer choices capital government intervention...
All of the following are factors of production except: Group of answer choices capital government intervention land entrepreneurship
1- Which of the following factors is least likely to contribute to food insecurity in an...
1- Which of the following factors is least likely to contribute to food insecurity in an older adult? A) Limited income B) Lack of available food programs C)Physical limitations D)Medical bills 2-Resources available for the older adult, especially those home bound or who are low income include? A)Meals on Wheels b)SNAP C)WIC D) a and b 3-Water needs of a 4-month-old infant who does not eat solids are best met by: a)Sterile water supplements b)Glucose water supplements c)Human milk or...
Factors that determine drug transport across the blood brain barrier include all of the following except?...
Factors that determine drug transport across the blood brain barrier include all of the following except? 1. Lipid solubility 2. Charge at physiological pH 3. Renal function 4. Protein binding 5. Presence of efflux transporters
All of the following factors encourage the emergence of gray trade EXCEPT substantial price differences between...
All of the following factors encourage the emergence of gray trade EXCEPT substantial price differences between national markets. stringent localization modifications required for standardized products. a limited availability of certain models or versions in one market, and the local demand is high. ease of transportation and importation. Which of the following does not belong to consumer sales promotion? Personal selling Frequent-user incentives Manufacture rebates Sweepstakes Free samples Scenario 1: Globe Travel Agency sells Spring Break trips to University of Houston...
The personal-selling process includes all of the following except: A. approaching the prospect. B. Making the...
The personal-selling process includes all of the following except: A. approaching the prospect. B. Making the presentation C. Prospecting D. Answering objections E. Providing a product sample.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT