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Owners of which of the following entity types could potentially increase their after-tax cash flow from...

Owners of which of the following entity types could potentially increase their after-tax cash flow from the entity by reducing the compensation they receive in order to increase the amount of business income that flows-through to them from the entity? Multiple Choice

Sole-proprietorship.

Entity taxed as a partnership.

S corporation.

"Entity taxed as a partnership" and "S corporation".

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Answer #1

Owners of Entity taxed as a partnership and S corporation are those entity types who potentially increase their after tax cash flow from the entity by reducing the compensation they receive in order to increase the amount of business income that flows through to them from the entity.

Hence, option D is the correct answer.

SUMMARY:

Option D is the correct answer.

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