Subchapter S corporations cannot have more than thirty-five shareholders, each of
whom must sign the election to be taxed in a manner similar to a partnership. (cannot
exceed 100 shares)
Which of the following is NOT one of the recognized disadvantages of doing business
as a corporation?
A corporation can be in existence for a maximum of 99 years
By statute, a limited partnership must have a minimum of ____________limited
Corporations are said to have a burden of "double tax" because
Subchapter S corporations are limited to _________shareholders.
In a Limited Liability Company, the losses and profits pass through to the shareholders.
A partnership is a taxable entity.
Investors favor using Limited Partnerships to invest in commercial real estate because
they can use the depreciation of the property as a tax loss.
A limited partnership has to have at least two general partners and at least one limited
A partner who participates in the management of the partnership, but whose existence
is not known to the public is a _____________ partner.
Which of the following decisions would require a unanimous vote of the partners?
If a partnership agreement does not say how losses will be shared, they will be shared
In whatever way the profits are shared.
Bob and Sue, who are both attorneys, agreed to share office space and other overhead
expenses in order to save money. They did not agree to form a partnership. They do not
share profits or losses and neither has a say in the management of the other's business.
The sign outside their door, and on their common letterhead, reads: "Bob Smith and
Sue Jones, Attorneys at Law." Using this stationary, Bob purchased office equipment
from Smart Buy. Sue at no time used the equipment and did not enter into the contract