Which of the following is true about this statement: "In a sole proprietorship, the owner's personal assets are at risk if the business is not successful." Is this true? a) No, personal assets are protected by sole proprietorship laws. b) Yes, there is no protection for personal assets with sole proprietorships. c) No, personal assets are only at risk with corporations. d) Yes, this is true for all forms of business.

Which of the following is true about this statement: "In a sole proprietorship, the owner's personal assets are at risk if the business is not successful." Is this true? a) No, personal assets are protected by sole proprietorship laws. b) Yes, there is no protection for personal assets with sole proprietorships. c) No, personal assets are only at risk with corporations. d) Yes, this is true for all forms of business.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 18MCQ

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Which of the following statements is false concerning forms of businessorganization? a. A corporation has tax advantages over the other forms of businessorganization.b. It is easier for a corporation to raise large sums of money than it isfor a sole proprietorship or partnership.C. A sole proprietorship is an easy type of business to form.d. Owners Of sole proprietorships and partnerships have personalliability for the debts of the business while owners of corporationshave limited legal liability.
While meeting with a CPA, a new business owner finds out that the business is considered a pass-through entity. What does that mean? a) The profits of the business are taxed as income to the owner. b) The profits of the business are taxed as income to the company. c) The owner's personal assets are not at risk even if the business fails. d) The business will only have a few employees.
Do those who are unable or unable to operate under a conventional corporation's limitations have a predisposition toward starting their own business? Is there a reason for this or not?
What term is used to describe the characteristic of a business entity where an individual(s) associated with an entity can not only lose all of his/her investment in the firm but personal assets can be taken to pay the debts of the firm if necessary? Group of answer choices unlimited liability limited liability dissolution mutual agency
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?
Which of the following is NOT the weaknesses of sole proprietorship? Manakah di antara berikut BUKAN kelemahan perniagaan milikan tunggal? Select one: A. Limited skills and capability /Keupayaan dan kemahiran terhad B. Do not have proper financial record /Tidak memiliki rekod kewangan yang baik C. Unlimited liability /Liabiliti tidak terhad D. Business information can be kept confidential /Maklumat perniagaan tidak perlu didedahkan
If the assets of a corporation are not sufficient to satisfy the claims of its creditors, the creditors can make claims against the personal assets of the owners. True or False The owners of a corporation are personally responsible for the debts of the corporation. True or False
Which of the following is true of limited liability companies ? a) They protect the members personal assets in case of lawsuits b) They are very complex and difficult to run c) They are established for a specific project or for a limited time d) They require members to regularly hold meetings
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 type of business will most likely have problems with insufficient funds for business? A)Partnerships B)LLCs C)Corporations D)Sole proprietorship
One of the disadvantages associated with sole proprietorships is that: raising working capital is difficult. acquiring total ownership of the business's finances is not easy. O creating a sole proprietorship is a complicated process. obtaining licenses and permits is difficult. making autonomous business decisions is difficult.
This business starts with relatively small amount of capital and the owner proprietor is only person entitled to receive all profits and liable to bear all losses and debts. a. Partnership b. Multinational Companies c. Corporation d. Sole Proprietorship

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bartleby, a Learneo, Inc. business

	a)	No, personal assets are protected by sole proprietorship laws.
	b)	Yes, there is no protection for personal assets with sole proprietorships.
	c)	No, personal assets are only at risk with corporations.
	d)	Yes, this is true for all forms of business.