Next to the following list of eight characteristics of business organizations, select a brief description of how each characteristic applies to corporations. Characteristic 1. Ease of formation 2 Owner liability 3. Tax status of income 4. Duration of life 5. Government regulation 6. Owner authority and control 7. Owner liability 8. Ability to raise large capital amounts Descriptions

Next to the following list of eight characteristics of business organizations, select a brief description of how each characteristic applies to corporations. Characteristic 1. Ease of formation 2 Owner liability 3. Tax status of income 4. Duration of life 5. Government regulation 6. Owner authority and control 7. Owner liability 8. Ability to raise large capital amounts Descriptions

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 13MCQ

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Next to each corporate characteristic 1 through 8, enter the letter of the description that best relates to it. 1. Owner authority and control 2. Ease of formation 3. Transferability of ownership 4. Ability to raise large capital amounts 5. Duration of life 6. Owner liability 7. Legal status 8. Tax status of income a. Requires government approval b. Corporate income is taxed c. Separate legal entity d. Readily transferred e. One vote per share f. High ability g. Unlimited h. Limited
Match each corporate characteristic 1 through 8 with the description that best relates to it. Characteristic Descriptions 1. Transferability of ownership 2. Ability to raise large capital amounts 3. Duration of life 4. Legal status Entity with similar rights as individual 5. Ease of formation High because buying stock is attractive 6. Government regulation Indefinite 7. Mutual agency More severe than partnerships and proprietorships 8. Owner authority and control TT TT O
Question 4 Cash generated from operations is reflected in the Select one: a. Statement of Changes in Equity b. Statement of Financial Position c. Statement of Cash Flows d. Statement of Comprehensive Income
Explain an example of basic accounting equation for a corporation with shareholders’ equity expanded to highlight its composition.
Identify each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corporate form of business organization. 1. Separate legal entity 2. Taxable entity resulting in additional taxes 3. Continuous life 4. Unlimited liability of owners 5. Government regulation 6. Separation of ownership and management 7. Ability to acquire capital 8. Ease of transfer of ownership
Which of the following statements is true? A. the organizational form that is the easies to raise capital is the corporation B. corporations make up the largest proportion of businesses in the U.S C. sole proprietorships are protected by limited liability D. owners of corporations are not protected by limited liability
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Which of the following forms of corporation is designed for businesses that exist to make positive social or environmental impacts? B A) S corporation B) Nonprofit corporation C) B corporation D) Professional corporation
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