WGU D362
CORPORATE FINANCE
SECTION1 QUESTIONS
WITH 100% CORRECT
ANSWERS!!
D362 Evatee7/27/24WGU D362 1 / 2
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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