Unlike limited partners in a limited partnership, members of an LLC   

 

a.            are not treated similarly for federal tax purposes

b.            have many more regulatory requirements  

c.             may be actively involved in managing the business

d.            both a and c 

6.  Profits of a corporation are taxed at the corporate level and then at individual level when they are distributed to shareholders. (True/False).

 

7.  Transferring ownership within a corporation can easily be done by sale, gift, or bequest of stock.  (True/False).

 

8.  For almost all purposes other than federal income tax, an S Corporation is treated as a "regular' corporation. (True/False).

 

 

 

 

9.  To split the money in a retirement account in a divorce, a court order that clearly specifies the amount of the participant's benefits that the plan administrator must pay to the former spouse or child is called a:

a.   qualified divorce request order

b.   qualified domestic relations order

c.    qualified joint and survivor annuity

d.   qualified pre-retirement survivor annuity

10.  Which of the following statements concerning head of household status is not correct?

a.   filing as head of household rather than single significantly reduces income taxes

b.   taxpayer must pay more than half of the cost of keeping up the home

c.    taxpayer must have custody of a child for over half of the year

d.   may be married if he/she did not live with their spouse during the last 3 months of the year.