which of the following is an advantage of the corporate form of business
by Prof. Winfield O'Hara
Published 3 years ago
Updated 2 years ago
Tax Advantages – Corporations often gain tax advantages, such as the deductibility of health insurance premiums paid on behalf of an owner-employee; savings on self-employment taxes, as corporate income is not subject to Social Security, Workers Compensation and Medicare taxes; and the deductibility of other expenses such as life insurance.
Answer and Explanation: An advantage of the corporate form of business organization is c. limited liability. A corporation is a separate legal entity and shareholders are only liable to the extent of their ownership.
rights to use the business model, to sell a product or service to others in a given territory.
Is C. a simpler form of ownership?
C. is usually simpler and less expensive than starting other forms of ownership
Can a partnership be taxed as a corporation?
A. can be taxed either as a corporation or as a partnership, so owners can choose the tax treatment that
What is the least expensive business organization to create?
D. A sole proprietorship is the least expensive business organization to create.
Which is the hardest form of organization to create?
D. Sole proprietorships are the hardest forms of organization to create.
What is an example of a publicly held business?
D. A family-operated business is an example of a publicly held business organization.
Why is a partnership practical?
A. A partnership is practical because only a limited number of persons can be partners.
When is a partnership dissolved?
E. A partnership is dissolved anytime a partner ceases to be a partner, regardless of whether the reason is withdrawal or death.
Is a proprietorship more stable than a proprietor?
A proprietorship's business activity may be more stable than a proprietor's willingness to remain actively involved in the business. C. A proprietor may have to share his or her voice of control and responsibility for the business' success with the other acting members of the organization.
Is sole proprietorship expensive?
A. The creation of sole proprietorship is expensive and requires formal documentation.
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