The main thing that makes S Corporations different from C Corporations is:
a. The legal requirements to set up an S Corporation are less complicated than setting up a C Corporation.
b. Owners of an S Corporation are personally liable for the business. With a C Corporation, owners are not held personally liable.
c. That the business is not taxed itself. Only the shareholders are taxed.
Ans: c. That the business is not taxed itself. Only the shareholders are taxed.
You might also like to view...
A sales budget is a prediction of sales under a given set of conditions
Indicate whether the statement is true or false
Feathertouch Company sold merchandise worth $1,600 on credit, terms n/15. The merchandise sold had cost $1,100. What is the required journal entry to record the transaction and to transfer the cost of merchandise inventory to cost of goods sold under the periodic inventory system? A) Accounts Receivables 1,600 Sales 1,600No entry for transfer to cost of goods sold
B) Sales 1,600 Accounts Receivables 1,600Merchandise Inventory 1,100Cost of Goods Sold 1,100 C) Accounts Receivables 1,600 Merchandise Inventory 1,600Cost of Goods Sold 1,100Merchandise Inventory 1,100 D) Merchandise Inventory 1,600 Sales 1,600Cost of Goods Sold 1,100Merchandise Inventory 1,100