Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

1. Which of the following forms of business is \"double taxed\", once on their p

ID: 2723022 • Letter: 1

Question

1. Which of the following forms of business is "double taxed", once on their profits and once again on their dividends? A. a limited liability company (LLC) B. a general partnership C. a sole proprietorship D. a regular corporation

2. An investment that pays the same amount at the beginning of each year for a fixed amount of time is called __________.

an ordinary annuity

an annuity due

an excess cash flow

a perpetuity

3. Which of the following business owners are protected by limited liability?

a general partner

a sole proprietor

a stockholder

a bondholder

4. Samuel Culper purchased a stock for $50 one year ago. That stock is now worth $75. During the year, the stock paid a dividend of $2.50. What was Samuel's total return from holding the stock?

35%

45%

55%

65%

an ordinary annuity

an annuity due

an excess cash flow

a perpetuity

Explanation / Answer

1. Which of the following forms of business is "double taxed", once on their profits and once again on their dividends? D. a regular corporation

An investment that pays the same amount at the beginning of each year for a fixed amount of time is called

An annuity Due

Which of the following business owners are protected by limited liability?

a stockholder

4. Total Rate of return=FInal Price- Initial Price+ Dividend/ Initial Price

=(75-50+2.5)/50

Total Rate of return=55%

a stockholder