Typically, a corporation is a creature of state law and

A) It may have perpetual existence.

Shareholders can own it together with varying % of ownership

Income and Dividends are taxed to the shareholders

Is always a creature of federal law

B) It may have perpetual existence

Shareholders can own it together with varying % of ownership

Income is taxed to the corporation

Dividends are taxed to the shareholder.

C) It may never have perpetual existence.

Shareholders can own it together with varying % of ownership

Income is taxed to the corporation

Dividends are taxed to the shareholders

D) It may have perpetual existence.

Shareholders cannot own it together with varying % of ownership

Income is taxed to the corporation

Dividends are taxed to the shareholders

A sole proprietorship is

A) The most complex form of a business organization.

Applicable if there is only one owner of the business.

The sole proprietor is in full control business

The sole proprietor is liable for all the debts of the business

The proprietorship is not a taxable entity.

All profits or losses flow to the proprietor

B) The simplest form of a business organization.

Applicable if there is only one owner of the business.

The sole proprietor is in full control business

The sole proprietor is not liable for all the debts of the business

The proprietorship is not a taxable entity.

All profits or losses flow to the proprietor

C) The simplest form of a business organization.

Applicable if there is only one owner of the business.

The sole proprietor is in full control business

The sole proprietor is liable for all the debts of the business

The proprietorship is not a taxable entity.

All profits or losses flow to the proprietor

D) The simplest form of a business organization

Applicable if there is more than one owner of the business.

The sole proprietor is in full control business

The sole proprietor is liable for all the debts of the business

The proprietorship is not a taxable entity.

All profits or losses flow to the proprietor

A business that is a Limited Liability Company (LLC) -

A) Generally, shields the owners from all of the business debts

For income tax purposes is treated almost exactly as a corporation

The business income is not subject to taxation under the pass-through concept

The LLC is easier to form and operate than either a corporation or Subchapter S corporation.

The LLC acts as a conduit for all income to the business so that there is only one taxable incidence

All the business losses flow directly to the owners,a beneficial tax situation for owners

B) Generally, shields the owners from all of the business debts

For income tax purposes is treated almost exactly as a general partnership

The business income is subject to taxation as there isn't a pass-through

The LLC is easier to form and operate than either a corporation or Subchapter S corporation.

The LLC acts as a conduit for all income to the business so that there is only one taxable incidence

All the business losses flow directly to the owners,a beneficial tax situation for owners

C) Generally, shields the owners from all of the business debts

For income tax purposes is treated almost exactly as a general partnership

The business income is not subject to taxation under the pass-through concept

The LLC is easier to form and operate than either a corporation or Subchapter S corporation.

The LLC acts as a conduit for all income to the business so that there is only one taxable incidence

All the business losses flow directly to the owners,a beneficial tax situation for owners

D) Generally, shields the owners from all of the business debts

For income tax purposes is treated almost exactly as a general partnership

The business income is not subject to taxation under the pass-through concept

The LLC is more difficult to form and operate than either a corporation or Subchapter S corporation.

The LLC acts as a conduit for all income to the business so that there is only one taxable incidence

All the business losses flow directly to the owners,a beneficial tax situation for owners

The Rights of Partners

A) A silent partner has a voice in the management of the partnership

A secret partners existence is not known to the public

A dormant partner is both silent and secret

B) A silent partner has no voice in the management of the partnership

A secret partners existence is not known to the public

A dormant partner is both silent and secret

C) A silent partner has no voice in the management of the partnership

A secret partners existence still must be known to the public

A dormant partner is both silent and secret

D) A silent partner has no voice in the management of the partnership

A secret partners existence is not known to the public

A dormant partner is not silent or secret

Duties and Powers of Partners

A) A partnership is a fiduciary relationship, and each partner must act only on behalf of the partnership.

A partner can take for him/herself an opportunity of the partnership, and any gains that should have belonged to the partnership must not be paid to it.

All acts of partners are subject to the good-faith standard.

Since knowledge of any partner is charged to all partners, there is a duty on one partner to inform all other partners of all facts affecting the partnership business

B) A partnership is a fiduciary relationship, and each partner must act only on behalf of the partnership.

A partner cannot take for him/herself an opportunity of the partnership, and any gains that should have belonged to the partnership must be paid to it.

All acts of partners are subject to the bad-faith standard.

Since knowledge of any partner is charged to all partners, there is a duty on one partner to inform all other partners of all facts affecting the partnership business

C) A partnership is a fiduciary relationship, and each partner must act only on behalf of the partnership.

A partner cannot take for him/herself an opportunity of the partnership, and any gains that should have belonged to the partnership must be paid to it.

All acts of partners are subject to the good-faith standard.

Since knowledge of any partner is charged to all partners, there is a duty on one partner to inform all other partners of all facts affecting the partnership business

D) A partnership is a fiduciary relationship, and each partner must act only on behalf of the partnership.

A partner cannot take for him/herself an opportunity of the partnership, and any gains that should have belonged to the partnership must be paid to it.

All acts of partners are subject to the good-faith standard.

Since knowledge of any partner is not charged to all partners, there is not a duty on one partner to inform all other partners of all facts affecting the partnership business