Question 1

One of the normal rights of a shareholder in a corporation is to share equally (on a per-share basis) in any dividends paid by a company.

Accepted Answer

A) True 
 B)False

Question 2

Goodbiz Enterprises earns profits of $10 million during the year, and retains all of these profits. None are distributed to owners. Which of the following types of owners would not have to pay any taxes, on his or her individual tax returns, related to these undistributed earnings?

Accepted Answer

A)   A shareholder in an LLC
B)   A shareholder in a C corporation
C)   A shareholder in an S corporation
D)   A limited partner in a partnershipE) B) and C)
F) A) and B)

Question 3

Each partnership in a general partnership always shares equally with every other partner in the profits and losses of the business.

Accepted Answer

A) True 
 B)False

Question 4

The partners of a partnership have "unlimited liability" for partnership debts.

Accepted Answer

A) True 
 B)False

Exam 12: Payroll Taxes

Goodbiz Enterprises earns profits of $10 million during the year, and retains all of these profits. None are distributed to owners. Which of the following types of owners would not have to pay any taxes, on his or her individual tax returns, related to these undistributed earnings?

Correct Answer
verified

One of the normal rights of a shareholder in a corporation is to share equally (on a per-share basis) in any dividends paid by a company.

Correct Answer
verified

Each partnership in a general partnership always shares equally with every other partner in the profits and losses of the business.

Correct Answer
verified

The partners of a partnership have "unlimited liability" for partnership debts.

Correct Answer
verified

Exam 12: Payroll Taxes

Goodbiz Enterprises earns profits of $10 million during the year, and retains all of these profits. None are distributed to owners. Which of the following types of owners would not have to pay any taxes, on his or her individual tax returns, related to these undistributed earnings?

Correct AnswerverifiedShow Answer

One of the normal rights of a shareholder in a corporation is to share equally (on a per-share basis) in any dividends paid by a company.

Correct AnswerverifiedShow Answer

Each partnership in a general partnership always shares equally with every other partner in the profits and losses of the business.

Correct AnswerverifiedShow Answer

The partners of a partnership have "unlimited liability" for partnership debts.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified