Assume you are on the staff of a U$.$S$.$ Senator in your State as the Senior Tax Advisor to the Senator. The Senator is preparing to make an invited presentation to the national body of the Chambers of Commerce regarding Corporate Operations. She $($the Senator$)$ has requested that you take up the responsibility of preparing her for the presentation, especially as many attendees will include Corporate Tax Executives Among others, she wants explicitly your informed opinion on the three bullet question points below.

Relying on the concepts learned from the assigned materials for this Module, you are required to:

Explain how legal business entities differ in terms of the liability protection they provide their owners.

Compare the entity$-$level tax consequences for C corporations, S corporations, and business entities taxed as partnerships for both nonliquidating and liquidating distributions of noncash property. Do the tax rules tend to favor one entity type more than the others? Explain.

If business entities taxed as partnerships and S corporations are both flow$-$through entities for tax purposes, why might an owner prefer one form over the other for tax purposes? List separately the tax factors supporting the decision to operate a business entity as an entity taxed either as a partnership or as an S corporation