A ________ combines the advantages of a partnership and a C corporation.
A) subchapter S corporation
B) limited partnership
C) general partnership
D) sole proprietorship
E) subchapter K corporation

Question

Quizplus · Accepted Answer

A subchapter S corporation is a type of corporation that offers the legal liability protection of a C corporation, but is taxed similarly to a partnership. This means that the corporation's profits and losses are passed through to its shareholders and reported on their personal tax returns. This avoids the double taxation of C corporations and offers the same level of protection as a partnership.

A ________ Combines the Advantages of a Partnership and a C