One benefit of the subchapter s corporation is that

16. One benefit of the Subchapter S corporation is that there is no double taxation.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 16-04 Categorize corporate entities on the basis of how their income is taxed and understand the concept of
flow-through taxation.
Melvin - Chapter 16 #16
Topic: Taxation
17. Corporations may be created by written agreement between the principals, and no
strict or formal filing is required as long as the agreement is written.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 16-01 Identify the sources and level of law governing the formation and internal matters of corporations.
Melvin - Chapter 16 #17
Topic: Formation

18. Officers and directors owe fiduciary duties to the corporation and its shareholders;
however, none of the shareholders owe such duties because they cannot bind the
company.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 16-06 Identify the major fiduciary duties owed by insiders of a corporation to its shareholders and give examples
of each duty.
Melvin - Chapter 16 #18
Topic: Fiduciary Duties of Officers and Directors
19. Any corporation that does not make money is classified as a nonprofit corporation.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 16-01 Identify the sources and level of law governing the formation and internal matters of corporations.
Melvin - Chapter 16 #19
Topic: Categories of Corporations
20. The authority of an officer to bind the corporation must expressly flow from the
bylaws or through board of director mandates.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 16-05 Describe the fundamental structure and roles of officers; directors; and shareholders in the corporate form
of entity and understand the functions of each role and how the structure is governed.
Melvin - Chapter 16 #20
Topic: Officers