1. A limited liability company (LLC):

a. Is subject to double taxation.

b. Is usually taxed as a partnership.

c. Is usually taxed as a corporation.

d. None of these.

e. Only a. and c.

2. Nontax factors that affect the choice of business entity include:

a. Ease of capital formation.

b. Limited liability.

c. Single versus double taxation.

d. Only a. and b.

e. Choices a., b., and c.

3. Techniques that can be used to minimize the current period tax liability include:

a. Recognizing the interaction between the regular income tax liability and the alternative minimum tax liability.

b. Utilizing special allocations.

c. Having favorable treatment of certain fringe benefits.

d. Minimizing double taxation.

e. All of these can be used for effective tax planning.

4.Factors that should be considered in making the S corporation election for the current tax year include the following:

a. Are greater than 50% of the shareholders willing to consent to the election?

b. Can the requirements for qualification be satisfied by the fifteenth day of the third month of the tax year and also for the period of the tax year that precedes this date?

c. Will the corporation have total capital not in excess of $1 million?

d. Only b. and c.

e. Choices a., b., and c.