Question

QUESTION 4

• All partners regardless of their contribution to the firm have an equal voice in firm management, and decisions are by majority vote unless otherwise agreed.
  True
  False

QUESTION 15

• Directors, but not officers, of a corporation are generally liable for corporate debt.
  True
  False

QUESTION 16

• Any corporation by majority vote may elect Sub Chapter S status.
  True
  False

QUESTION 21

• A Sub Chapter S Corporation:

1. has the advantages and disadvantages of a partnership but is taxed like a corporation
2. is structured like an LLC but is taxed like a limited partnership
3. can only be owned and have as its shareholder a parent corporation
4. has the advantages and disadvantages of a standard corporation but is treated for tax purposes as a sole proprietorship or partnership

Answer 1

4. True

Each partner possesses an equal voice in management and the authority to act as agent for the partnership. Each partner can be held liable for all debts of the partnership, and for torts committed by other partners within the course of the partnership's business.

5. False

One of the main benefits of the corporate form of business is that the shareholders, directors and officers of a corporation are not usually held personally responsible for the debts and obligations of the corporation. The creditor can recover the money by selling the assets of company.

16.True

To become an S corp, must make a valid election that is:
Filed timely and All shareholders must consent to the election.

21Option C can only be owned and have as its shareholder a parent corporation

S Corporations are for  federal tax purposes is treated like a partnership, Shareholders report loss/earnings on their tax returns, is only taxed once and Can only have one class of shares and >= 100 shareholders. In general, corporations aren't allowed to be shareholders. The only exception that allows an S corp to own another S corp is when one is a qualified subchapter S subsidiary, also known as a QSSS. In order to be considered a QSSS, all of the shares of the owned S corp have to be owned by one S corp.