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WGU D362 CORPORATE FINANCE SECTION1 QUESTIONS WITH 100% CORRECT ANSWERS!!
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WGU D362 CORPORATE FINANCE SECTION1 QUESTIONS WITH 100% CORRECT ANSWERS!!
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WGU D362CORPORATE FINANCE
SECTION1 QUESTIONS
WITH 100% CORRECT
ANSWERS!!
D362
Evatee 7/27/24 WGU D362
, WGU D362 CORPORATE FINANCE SECTION1
QUESTIONS WITH 100% CORRECT
ANSWERS!!
Last year, a company filed an income tax return and paid taxes on its net
income. From this net income, the company paid cash dividends to its
shareholders, who were required to pay taxes on the dividends they received.
Which type of business organization is this company?
S-corporation
Partnership
C-corporation
Limited liability company (LLC) Answer - A major disadvantage of a C-
corporation is that it must pay taxes on the income it earns. If the corporation
pays a cash dividend, the stockholders must also pay taxes on the dividends
they receive. Thus, the owners of C-corporations are subject to double taxation
—first at the corporate level and then at the personal level when they receive
dividends.
What are two key characteristics of an S-corporation? Choose two answers.
Costlier to establish than a sole proprietorship or a partnership
Unlimited number of stockholders
Limited liability of owners
Double taxation Answer - "Costlier to establish than a sole proprietorship or a
partnership" is correct. Starting a corporation is costlier than starting a sole
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