Business Ventures

The similarities between an LLC and an S Corporation include:

• Both are Corporations

• Both require a Board of Directors

• Both have limited liability and "pass through" taxes

• All options are correct

Owners of an LLC are called

• Members

• Employees

• Sole Proprietors

• Shareholders

Similarities between C and S Corporations include:

• Both provide limited liability protections for shareholders

• Both may only have 100 shareholders

• Both have members not shareholders

• All options are correct

Requirements of an S Corporation include:

• No more than 100 shareholders

• Shareholders must be citizens of the United States

• Shareholders cannot be banks or insurance companies

• All options are correct

Profits from a C corporation are taxed twice.

• True

• False

C Corporations are separate legal entities (treated as if they are a person) from their owners

• True

• False

What is "Pass-Through" Taxation?

• Businesses income "passes through" as Personal Income Tax

• Passing off taxes on other employees

• Taxing the corporation only

• None of the options

The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?

• Corporation
• Cooperative
• Partnership
• Sole proprietorship

A type of state-chartered corporation that was developed to help small businesses by taxing them as individuals in a partnership is a(n) __________ corporation.

• S Corporation
• C Corporation
• Private
• Limited

What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?

• C Corporation
• S Corporation
• Private
• Limited