Briefly describe the type of corporation favored by most big business
What will be an ideal response?
Answer: A C corporation can have any number of owners (shareholders), most of whom do not work for the company. The business faces two levels of taxation. Taxes are paid on profits at the corporate level, and then all or part of those profits are given to shareholders as dividends, which are taxed again as part of personal income. C corporations are state-chartered.
Explanation: A C corporation is a state-chartered entity that pays taxes and is legally distinct from its owners. It can have any number of owners (shareholders), most of whom don't work for the company. At the corporate level, taxes are paid on profits; then, all or part of those profits are distributed to shareholders as dividends, which are taxed again as part of personal income. Shareholders risk losing the money they have invested in the corporation but do not have any liability that could force them to lose their house, car, or other personal possessions.
You might also like to view...
Laundry carts:
a. need to be cleaned on a regular basis, but sanitizing is unnecessary b. used for soiled launry can be interchanged with carts for clean laundry c. should be positioned so employees can unload laundry with excessive bending d. should not have protrusions that can snag or tear
Company X and Company Z have established a business arrangement whereby the two firms will cooperate for their mutual benefit. Which of the following has most likely been established?
A) competitive advantage B) licensing agreement C) franchising arrangement D) strategic alliance