Which of the following is a disadvantage of an S corporation?Multiple choice question.An S corporation may not adopt a calendar year for tax purposes.It is mandatory for an S corporation to have more than 100 shareholders.Only two classes of stock are permitted in an S corporation.An S corporation may not deduct most fringe benefits for shareholders.

Which of the following is a disadvantage of a corporation?Multiple choice question.Shareholders have unlimited liability for the management of the corporation.It is difficult to raise capital by issuing stock.Formalities are required in establishing and maintaining the corporate form of business.Profits from the business are taxed as income to the partners, not to the shareholders.

Select all that applyIdentify the advantages of an S corporation over a C corporation. (Check all that apply.)Multiple select question.An S corporation may not adopt a calendar year for tax purposes.Multiple classes of stock, divided among more than 100 shareholders, are allowed for an S corporation.An S corporation can have more than 100 shareholders.An S corporation is not subjected to a minimum tax, as is a C corporation.Shareholders in an S corporation retain the same limited liability protection as a C corporation.

An advantage of an S corporation over a C corporation is that Blank______.Multiple choice question.capital gains or losses from the S corporation are considered personal income or losses by the shareholders on a pro rata basisthe S corporation involves more than 100 shareholdersthe S corporation must deduct all fringe benefits for shareholdersthe net loss of the S corporation is mostly limited to a shareholder's stock and loans to the business

An advantage of a limited liability company (LLC) over an S corporation is that an LLC Blank______.Multiple choice question.may issue shares of stock to its membersextends liability beyond a member's capital contribution to the business, allowing unlimited liabilityrestricts any pass-through tax to its membersmay have tax advantages depending on the state in which the business operates

Which of the following is a disadvantage of sole proprietorships?Multiple Choicesharing of profits with major stockholderslack of continuitylack of business controlstringent government regulationsabsence of a tax-exempt retirement account