lJi-'ii 1 0.5 / 0.5 5} Connie wanted to form a partnership with Chuck to sell insurance. He agreed and they became co- owners in C&C Insurance, an equal partnership. The partnership did well in its rst year and, after expenses, had a prot of $150,000. How will the taxation of this prot be handled? C&C Insurance itself will pay the taxes on the business's prot. C&C Insurance will pay half of the tax liability and Connie and Chuck will pay the other half. Since the partnership was Connie's idea, she will pay income tax on the prot on her personal tax return. Connie and Chuck must both pay tax on the business's prot. l 2 o / 0.5 5} George and Mark are looking to start a business named P&P Enterprises. They are looking at an S corporation. How would this type of entity provide an advantage to George and Mark? An S Corporation can attract an unlimited number of shareholders. An S Corporation is a flowthrough entity for income tax purposes. An S Corporation offers multiple classes of stock. An S Corporation enables partnerships and corporations to invest as shareholders. See section 202b. Only one of these answers is a feature of an S Corporation