1. Which of the following statements is true about a sole proprietorship? A. A s
ID: 2571383 • Letter: 1
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1. Which of the following statements is true about a sole proprietorship? A. A sole proprietorship may sell stock. B. To be properly formed, the organizer of a sole proprietorship must file articles of C. Sole proprietorships insulate owners from liability for contractual obligations of the D. Sole proprietorships are pass through entities for tax purposes. 2. Which of the following are accurate statements concerning S corporations? organization with the proper state authorities. proprietorship. S corporation elections are a matter of state law B. Scorporations may have both preferred and common stock. C. Allshareholders must agree to the S corporation election. D. All of the above. E None of the above. An unincorporated of two or more persons to carry on as co-ownersa business for profit is which of the following? 3. A. A sole proprietorship B. A partnership. C. Alimited liability company D. None of the above.Explanation / Answer
ans 1 D) Sole proprietorship are pass through entities for tax purpose As the income of business of a sole proprietor his reported on his personal tax return , and the business is not taxed seprately.So this is called as pass through taxation as the business profit pass through the buisness which is taxed on his personal retrn. ans 2 c) All shareholders must agree to S corporation election All shareholder has to sign i.e give their consent for S corporation ans 3 A Partnership It is a general partnership which is an unincorporated association of two or more than two co-owners who carry on business ans 4 c) A delaware court that offers litigants an efficient juduciary dedicated to business matters, case laws. The court litigations consist of trust, corporate matters,fiduciary matters Dear student I have answered the first four students
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