Question

All of the following are characteristics of corporations except: Entity life will continue in the event...

All of the following are characteristics of corporations except:

Entity life will continue in the event of a withdrawal by an owner

Double taxation

Owners can easily access capital

Owners report their share of the entity’s earnings on their personal tax returns

Homework Answers

Answer #1

All of the following are characteristics of corporations except:

Owners report their share of the entity’s earnings on their personal tax returns.

Explanation -

Corporation has the following characteristics-

Separate legal entity and existence

Limited liability

Continue life

Double taxation

So in the given case, corporation has the characteristics i.e. entity life will continue in the event of a withdrawal by a owner, double taxation and owner can easily access capital. But Owners report their share of the entity’s earnings on their personal tax returns.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is not generally a factor in business entity selection? Ease of formation...
Which of the following is not generally a factor in business entity selection? Ease of formation Limited liability protection Nature of business Pass-through taxation 5 points    QUESTION 2 Individual proprietors report their business income and deductions on: Form 1065 Form 1120S Schedule A Schedule C 5 points    QUESTION 3 The built-in gain tax is a corporate level tax that applies to: "S" Corporations that convert to limited liability companies "C" Corporations that convert to "S" Corporations "C" Corporations...
1. All of the following are characteristics associated with a sole proprietorship, EXCEPT: a. income and...
1. All of the following are characteristics associated with a sole proprietorship, EXCEPT: a. income and expense items are reported on Schedule C b. the owner cannot report passive losses on real estate investments on Schedule D c.​once calculated, its net income is reported on Form 1040 d.​the owner must pay self-employment taxes to fund both the Social Security and Medicare systems 2.​A sole proprietor is fully liable for the debts and obligations of the business. (True/False). 3.​Each partner in...
Bentley has paid $40,000 in premiums on a whole life policy with a $250,000 death benefit....
Bentley has paid $40,000 in premiums on a whole life policy with a $250,000 death benefit. The policy has paid a dividend of $1,000 per year for the past 10 years. If Bentley surrenders the policy today for it’s cash value of $55,000, what will be the amount of gain subject to taxation? A. $55,000 B. $15,000 C. $25,000 D. $0 Which of the following statements regarding entity purchase buy-sell agreements is correct? A. When one of the owners dies,...
7. Two analysts are overheard discussing technical trading rules. One says, "I have noticed over the...
7. Two analysts are overheard discussing technical trading rules. One says, "I have noticed over the last year or so that the market rises to about 11,000 and then falls back. It seems to do that every two to three months. At the bottom, it goes to about 10,000 and then rebounds. It's sort of like watching a roller coaster." The market consistently staying in a band between 10,000 and 11,000 is most likely to be used as evidence against...
13. Which of the following statements is CORRECT? Group of answer choices One of the disadvantages...
13. Which of the following statements is CORRECT? Group of answer choices One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. Sole proprietorships are subject to more regulations than corporations. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones. Corporations...
This is just a discussion post from my classmate. I just need to respond. Based off...
This is just a discussion post from my classmate. I just need to respond. Based off of what is written, please answer with a simple analysis of what's written. (example: Interesting post, I see that...) 1. Discuss each of the following business entity types including ownership, financial and legal and tax issues related to each type. Sole Proprietorship A sole proprietorship is owned by only one person and the firm and the owner are considered one and the same from...
All of the following are characteristics of preferred stock that make it similar to bonds except:...
All of the following are characteristics of preferred stock that make it similar to bonds except: a. constant periodic payments. b. ahead of common stock with respect to dividends. c. no voting rights. d. periodic payment is tax deductible to the paying company. e. All of the above characteristics make preferred stock similar to bonds. ' The price of a stock today can be determined by: a. return on stock investment. b. its dividend. c. kP o= D 1+(P 1-P...
Suppose that there are three types of investors with the following tax rates: Individuals Corporations Institutions...
Suppose that there are three types of investors with the following tax rates: Individuals Corporations Institutions Dividends 30% 5% 0% Capital gains 15% 30% 0% Individuals invest a total of $80 billion in stock and corporations invest $10 billion. The remaining stock is held by the institutions. All three groups simply seek to maximize their after-tax income. These investors can choose from three types of stock offering the following pre-tax payouts per share: Low Payout Medium Payout High Payout Dividends...
1. Which of the following is not a correct statement regarding the advantage of the partnership...
1. Which of the following is not a correct statement regarding the advantage of the partnership entity form over the C corporation form? a. Partnership income is subject to a single level of taxation; corporate income is double taxed. b. Partners in a general partnership have less personal liability for entity claims than shareholders of a C corporation. c. A partnership typically has easier administrative and filing requirements than does a C corporation. d. Partnerships may specially allocate income and...
Evaluate the following investment project: - Initial Investment = $ 30 million - Useful life =...
Evaluate the following investment project: - Initial Investment = $ 30 million - Useful life = 7 years - Salvage value = $ 3 million - Net Cash Flows: Years 1-7: $ 9 million The capital structure of the company requires financing: 40% with long-term debt through a bond, and 60% with its own capital, starting with Retained Earnings and if necessary, carry out a new share issue which will cost 3% more than Retained Earnings. Some additional information: -...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT