In order to establish a C corporation, it is a requirement that investors run the company, whereas in an S corporation, this is not the case. True or False True False
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- _______ Which of the following is not an advantage of acorporate form of ownership?a. It is easier to raise capital.b. Ownership can be transferred easily andquickly.c. The death of an owner does not terminatethe corporation.d. Profits are taxed twice.e. The liability of the owners is limitedWhich of these relationships is false? a. Current Asstes+NON-Current Assests=Liabilites+Equity b. Assets-Liabilities=Equity c. Assets-Equity=Non-Current Liabilties4. Which of the following statements are true about an S Corporation? Group of answer choices A. Shareholders of an S Corps have limited liability B. Shareholders of an S Corps are liable for all profits and losses as a flow-through tax entity C. S Corps only have one class of stock D. S Corps limit the number of shareholders to no more than 100 E. All of the above are true
- Which of the following statements is correct in relation to limited partners? Select one: a. Their liability is limited to the capital they have agreed to invest in the partnership b. They have no liability for partnership debts c. They have full liability for partnership debts.Which of the following business forms is likely to present the greatest risk to an expanding firm in the context of both financial and human investments? a. A licensing arrangement b. A joint venture c. Piggybacking d. FranchisingThe major difference between realizing a capital loss or a business investment loss is the sale of shares or write-off of debts of a Small Business Corporation. True False
- Corporate foundations make up 90% of the foundation subsector. A. True B. FalseTypically _____ of shareholders who vote in the shareholder meeting approve of executive pay plans at their respective companies. A. Over 95% B. Less than 50% C. Less than 25% D. Less than 10%The S-corporation form of organization allows a corporation to avoid double taxation.;True or False
- In the event of bankruptcy, which partners would most likely to spend more money to settle the business liabilities? A)Silent partners B)Limited partners C)Industrial partners D)General partnersIn this defensive strategy, the firm agrees to a complete distribution of firm assets to creditors a Divestiture strategy b. Liquidation strategy OC. Bankruptcy d. Spin-off28 - Which of the following is the type of financing that arises as a result of adding the profit generated as a result of operating activities to the capital of the enterprise without being distributed to the partners? a) auto financing B) Financing from external sources NS) Financing from own resources D) long-term financing TO) Financing from partners