Question

Which of the following is not a legitimate filing status for income tax purposes?
   a.   Single
    b.   Head of household
    c.   Married filing jointly
    d.   Widower

Which of the following is not a business entity type used in the United States?
   a.   C Corporation
    b.   Family Limited Partnerships
    c.   Family Proprietorship
    d.   S Corporation

Which of the following is an advantage of a sole proprietorship?
   a.   Ease to sell business assets
    b.   Limited liability
    c.   Business income is not subject to self-employment tax
    d.   All of the above

What is the charter document used in the formation of LLC’s?
   a.   By-laws
    b.   Articles of Organization
    c.   Organizational mission statement
    d.   Articles of incorporation

Answer 1

Answer(1): Option "d" is correct that says "Widower"

Widower is not a legitimate filing status for income tax purposes

In filing status in USA, there are five categories:

1. Single
2. Married filing separately
3. Married filing jointly
4. Head of household
5. Qualifying Widower with dependent children

Answer(2): Option "c" is correct.

Family Proprietorship is not a business entity type used in the United States.

Types of business entity in USA:

1. Sole proprietorship
2. Corporation
3. Family Limited Partnerships
4. S corporation
5. Limited liability company

Answer(3): Option "a" is correct.

Ease to sell business assets is the advantage of a sole proprietorship.

A sole proprietor business is easy to establish and sell but the owner is personally liable for all the debts and obligations that is the biggest disadvantage.

Answer(4): Option "d" is correct.

Articles of incorporation is the charter document used in the formation of LLC.

Article of incorporation is the legal document or set of documents to create and register a corporation (C&S)