Exam (elaborations)
Wgu D362 Corporate Finance section1 With Questions And 100% ALL SURE ANSWERS
- Course
- Institution
Wgu D362 Corporate Finance section1 With Questions And 100% ALL SURE ANSWERS
[Show more]
Seller
Follow
Content preview
JACKLINEWgu D362 Corporate Finance section1 With Questions And 100% ALL
SURE ANSWERS
Terms in this set (32)
Last year, a company filed an income tax return and A major disadvantage of a C-corporation is that it must pay taxes on the income it earns. If the
paid taxes on its net income. From this net income, corporation pays a cash dividend, the stockholders must also pay taxes on the dividends they
the company paid cash dividends to its receive. Thus, the owners of C-corporations are subject to double taxation—first at the corporate
shareholders, who were required to pay taxes on level and then at the personal level when they receive dividends.
the dividends they received.
Which type of business organization is this
company?
S-corporation
Partnership
C-corporation
Limited liability company (LLC)
, 8/18/24, 2:46 AM
What are two key characteristics of an S- "Costlier to establish than a sole proprietorship or a partnership" is correct. Starting a corporation is
corporation? Choose two answers. costlier than starting a sole proprietorship. For example, it requires writing articles of incorporation
Costlier to establish than a sole proprietorship or a and by-laws that conform to the laws of the state of incorporation.
partnership "Limited liability of owners" is correct. A major advantage of a corporation is that stockholders have
Unlimited number of stockholders limited liability for debts and other obligations. Owners of corporations have limited liability because
Limited liability of owners corporations are legal persons that take actions in their own names, not in the names of individual
Double taxation owners.
"Access to capital" is correct. Shares in a corporation can be sold to raise capital from investors who
What are two key characteristics of a C-
are not involved in the business. This can greatly increase the amount of capital that can be raised to
corporation? Choose two answers.
fund the business.
Inexpensive formation
"Double taxation" is correct. A major disadvantage of a C-corporation is that it must pay taxes on the
Access to capital
income it earns. If the corporation pays a cash dividend, the stockholders must also pay taxes on the
Unlimited liability of owners
dividends they receive. Thus, the owners of C-corporations are subject to double taxation—first at the
Double taxation
corporate level and then at the personal level when they receive dividends.
A new corporation is being formed, and reporting Correct:The board of directors is elected by the shareholders and is responsible to them, not to
standards are being considered. management.
Who reports directly to the owners in this business
structure?
Board of directors
Chief financial officer (CFO)
Audit committee
Chief executive officer (CEO)
Who is responsible for preparing a company's Answer
financial statements? Correct:In addition to maintaining the firm's financial and cost accounting systems, preparing taxes,
The internal auditor and working closely with the firm's external auditors, the controller is responsible for preparing the
The controller financial statements.
The treasurer
The external auditor
Which type of business organization is subject to Correct:
paying taxes on its income, while its stockholders A major disadvantage of a C-corporation is that it must pay taxes on the income it earns. If the
are also taxed on the dividends? corporation pays a cash dividend, the stockholders must also pay taxes on the dividends they
Partnership receive. Thus, the owners of C-corporations are subject to being taxed twice—first at the corporate
Sole proprietorship level and then at the personal level when they receive dividends.
C-corporation
Limited liability corporation (LLC)
Wgu D362 Corporate Finance section1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Queenstin. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75391 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now