Which of the Following Ways of Distributing the Income of Corporations
Which of the following ways of distributing the income of corporations is taxed twice?
A limited liability corporation:
A)has unlimited liability.
B)is automatically taxed as a partnership.
C)is decreasing in popularity among venture capitalists.
D)had been the most popular choice of organization structure by new ventures and small businesses.
S corporation status means:
A)shareholders do not have limited liability.
B)the corporation is subject to a minimum tax of 34 percent.
C)consent by a majority of shareholders is required for the election of this form of business.
D)the corporation pays no tax.
In an S corporation:
A)gains or losses of the business are separate from the personal income of the shareholder.
B)shareholders retain unlimited liability.
C)only one class of stock is permitted.
D)most fringe benefits for shareholders can be deducteD.