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- Which of the following statements is true of a sole proprietorship? A. A sole proprietorship has to pay business income taxes. B. A sole proprietorship joins two or more individuals as co−owners. C. The sole proprietor is personally liable for the liabilities of the business. D. A sole proprietorship is taxed separately from the owner.The following describe several different business organizations. Determine whether each description bestrefers to a sole proprietorship (SP), partnership (P), corporation (C), or limited liability company (LLC). Jeffy Auto is a separate legal entity from its owner, but it does not pay a business income tax.From a tax perspective, and disregarding other issues such as limited liability, does it always make sense to operate businesses in a separate business entity, such as a C corporation? When might it be better to be a sole proprietor?
- What is the legal relationship of a sole proprietorship to its owner? A. The owner and the sole proprietorship are considered to be the same legal entity. B. A sole proprietorship can survive the death of its owner. C. The owner can shelter profits of a sole proprietorship from taxation. D. Then owner is not liable for debts incurred by the sole proprietorship.Which of the following is true for a Limited Liability Company (LLC)? business income is taxed at the corporate rate the owners have unlimted liability the company is limited in its liability business incomes is taxed at the individuals personal rate none of the aboveWhich of the following characteristics best describes a corporation? a. A business with a single owner b. Is not taxed c. Stockholders not personally liable for entity’s debts d. Not a separate taxable entity
- The following describe several different business organizations. Determine whether each description bestrefers to a sole proprietorship (SP), partnership (P), corporation (C), or limited liability company (LLC). Physio Products does not pay income taxes and has one owner. The owner has unlimited liability for business debt.Which of the following is true? Exempt corporations can claim the corporate OSD against gross income. The MCIT applies to domestic and resident corporations. Marketing expenses is a direct cost of service of a corporate car-parking operator. Dealers of securities are exempt from improperly accumulated earnings tax.Which of the following statements regarding losses is true? A. A personal net operating loss may be carried back but not forward to other tax years. B. A sole proprietor may deduct business losses against any form of income. C. In a regular corporation, entity level losses are passed through to the shareholders. D. In a S corporation, entity level losses are fully deductible by the shareholder under any circumstance.
- The following describe several different business organizations. Determine whether each description bestrefers to a sole proprietorship (SP), partnership (P), corporation (C), or limited liability company (LLC). Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nancy do not have personal responsibility for the debts of Financial Services.A C corporation can be described as: (a) A business that is separate and distinct from its owners, allowing the owners to conduct business while limiting their personal liability. (b) A business association defined by federal statute. (c) A legal entity that has more than one shareholder. (d) A type of corporation where owners have limited liability, and income, expenses, and deductions flow through to the shareholders and are taxed only at the shareholder level.A limited liability company's profits are “passed through” to its members. Those members pay Group of answer choices only personal income taxes. only business income taxes. no income taxes. both personal and business income taxes.