Test Bank For
Canadian Organizational Behaviour 12th Canadian Edition By Steven McShane, Melissa Warner
Chapter 1-15 Answers are at the End of Each Chapter
Chapter 1
Student name:
Sure! I’ll expand on the topics related to "Taxation of Business Entities," providing a more detailed exploration. This overview will cover fundamental concepts, applications, and implications relevant to the study of business taxation.---
### Overview of Business Entities#### 1. Types of Business EntitiesBusiness entities can be categorized based on ownership structure and tax treatment. Understanding these types is crucial for determining tax obligations and benefits.-
**Sole Proprietorships**: - Owned by a single individual, this is the simplest form of business entity. Income is reported on the owner’s personal tax return (Form 1040, Schedule C), which simplifies tax filing but also means personal
liability for debts and obligations.- **Partnerships**: - Consisting of two or more individuals, partnerships do not pay federal income taxes. Instead, they are considered pass-through entities, meaning income is taxed at the partners'
individual rates. Form 1065 is used to report partnership income, while partners receive Schedule K-1 to report their share on their returns.- **Corporations**: - Corporations are separate legal entities that provide limited liability
protection to their owners (shareholders). C-Corporations face double taxation: once at the corporate level on profits and again at the individual level when dividends are distributed. S-Corporations, on the other hand, are pass-through
entities but have restrictions on ownership and number of shareholders.- **Limited Liability Companies (LLCs)**: - LLCs combine the flexibility of partnerships with the liability protection of corporations. An LLC can choose to be
taxed as a sole proprietorship, partnership, or corporation, allowing for strategic tax planning. ### 2. Tax Implications of Each Entity TypeUnderstanding the tax implications of each entity type is critical for effective business planning.-
**Sole Proprietorships**: - Income is taxed at the owner’s individual tax rate. All profits and losses are reported on the owner’s tax return. This simplicity, however, can expose owners to significant personal risk.- **Partnerships**: -
Each partner reports their share of income and losses on their personal returns, allowing for loss deductions. Partners are also subject to self-employment taxes on their share of the income, which can significantly impact tax liability.-
**Corporations**: - C-Corporations are taxed at the corporate tax rate (currently 21%). Dividends are taxed again at the shareholder level. S-Corporations avoid double taxation, but there are restrictions on the number and type of
shareholders.- **Limited Liability Companies (LLCs)**: - By default, single-member LLCs are treated as sole proprietorships for tax purposes, while multi-
1) One of the key requirements of an organization is that it has buildings and equipment.
⊚ true
⊚ false
2) All organizations have a collective sense of purpose.
⊚ true
⊚ false
3) Collective entities are called "organizations" when their purpose is to generate profits for
shareholders.
⊚ true
⊚ false
4) The field of organizational behaviour came into existence in the 1970s.
⊚ true
⊚ false
5) Organizational behaviour emerged as a distinct field around the 1940s.
⊚ true
⊚ false
6) The skills and knowledge that employers tend to rank above anything else are in the field of
organizational behaviour.
⊚ true
⊚ false
7) Problem solving, team work, and communication are three important skills that employers
,look for in new employees.
⊚ true
⊚ false
, 8) Organizational behaviour knowledge helps us influence people and organizational events.
⊚ true
⊚ false
Sure! I’ll expand on the topics related to "Taxation of Business Entities," providing a more detailed exploration. This overview will cover fundamental concepts, applications, and implications relevant to the study of business taxation.---
### Overview of Business Entities#### 1. Types of Business EntitiesBusiness entities can be categorized based on ownership structure and tax treatment. Understanding these types is crucial for determining tax obligations and benefits.-
**Sole Proprietorships**: - Owned by a single individual, this is the simplest form of business entity. Income is reported on the owner’s personal tax return (Form 1040, Schedule C), which simplifies tax filing but also means personal
liability for debts and obligations.- **Partnerships**: - Consisting of two or more individuals, partnerships do not pay federal income taxes. Instead, they are considered pass-through entities, meaning income is taxed at the partners'
individual rates. Form 1065 is used to report partnership income, while partners receive Schedule K-1 to report their share on their returns.- **Corporations**: - Corporations are separate legal entities that provide limited liability
protection to their owners (shareholders). C-Corporations face double taxation: once at the corporate level on profits and again at the individual level when dividends are distributed. S-Corporations, on the other hand, are pass-through
entities but have restrictions on ownership and number of shareholders.- **Limited Liability Companies (LLCs)**: - LLCs combine the flexibility of partnerships with the liability protection of corporations. An LLC can choose to be
taxed as a sole proprietorship, partnership, or corporation, allowing for strategic tax planning. ### 2. Tax Implications of Each Entity TypeUnderstanding the tax implications of each entity type is critical for effective business planning.-
**Sole Proprietorships**: - Income is taxed at the owner’s individual tax rate. All profits and losses are reported on the owner’s tax return. This simplicity, however, can expose owners to significant personal risk.- **Partnerships**: -
Each partner reports their share of income and losses on their personal returns, allowing for loss deductions. Partners are also subject to self-employment taxes on their share of the income, which can significantly impact tax liability.-
**Corporations**: - C-Corporations are taxed at the corporate tax rate (currently 21%). Dividends are taxed again at the shareholder level. S-Corporations avoid double taxation, but there are restrictions on the number and type of
shareholders.- **Limited Liability Companies (LLCs)**: - By default, single-member LLCs are treated as sole proprietorships for tax purposes, while multi-
9) Organizational behaviour theories completely replace your personal theories, which are
almost always wrong.
⊚ true
⊚ false
10) Companies that apply organizational behaviour knowledge are likely to have greater
financial returns than companies that do not apply organizational behaviour knowledge.
⊚ true
⊚ false
11) The open systems view recognizes that organizations usually operate without dependence on
or interaction with an external environment.
⊚ true
⊚ false
12) Organizational effectiveness, not profitability, is considered the "ultimate dependent
variable" in organizational behaviour.
⊚ true
⊚ false
13) Almost all organizational behaviour theories share an implicit or explicit objective of making
organizations more effective.
⊚ true
⊚ false
14) The open systems view states that organizations are effective when they maintain a good "fit"
with their external environments.
⊚ true
⊚ false
, 15) One problem with the open systems view of organizations is that it neglects to focus on how
well the organization operates internally.
⊚ true
⊚ false
16) Human capital refers to the average cost of hiring and firing each employee in the
organization.
⊚ true
⊚ false
Sure! I’ll expand on the topics related to "Taxation of Business Entities," providing a more detailed exploration. This overview will cover fundamental concepts, applications, and implications relevant to the study of business taxation.---
### Overview of Business Entities#### 1. Types of Business EntitiesBusiness entities can be categorized based on ownership structure and tax treatment. Understanding these types is crucial for determining tax obligations and benefits.-
**Sole Proprietorships**: - Owned by a single individual, this is the simplest form of business entity. Income is reported on the owner’s personal tax return (Form 1040, Schedule C), which simplifies tax filing but also means personal
liability for debts and obligations.- **Partnerships**: - Consisting of two or more individuals, partnerships do not pay federal income taxes. Instead, they are considered pass-through entities, meaning income is taxed at the partners'
individual rates. Form 1065 is used to report partnership income, while partners receive Schedule K-1 to report their share on their returns.- **Corporations**: - Corporations are separate legal entities that provide limited liability
protection to their owners (shareholders). C-Corporations face double taxation: once at the corporate level on profits and again at the individual level when dividends are distributed. S-Corporations, on the other hand, are pass-through
entities but have restrictions on ownership and number of shareholders.- **Limited Liability Companies (LLCs)**: - LLCs combine the flexibility of partnerships with the liability protection of corporations. An LLC can choose to be
taxed as a sole proprietorship, partnership, or corporation, allowing for strategic tax planning. ### 2. Tax Implications of Each Entity TypeUnderstanding the tax implications of each entity type is critical for effective business planning.-
**Sole Proprietorships**: - Income is taxed at the owner’s individual tax rate. All profits and losses are reported on the owner’s tax return. This simplicity, however, can expose owners to significant personal risk.- **Partnerships**: -
Each partner reports their share of income and losses on their personal returns, allowing for loss deductions. Partners are also subject to self-employment taxes on their share of the income, which can significantly impact tax liability.-
**Corporations**: - C-Corporations are taxed at the corporate tax rate (currently 21%). Dividends are taxed again at the shareholder level. S-Corporations avoid double taxation, but there are restrictions on the number and type of
shareholders.- **Limited Liability Companies (LLCs)**: - By default, single-member LLCs are treated as sole proprietorships for tax purposes, while multi-
17) The systematic research anchor relies mainly on stories and myths to test hypotheses.
⊚ true
⊚ false
18) The contingency anchor in organizational behaviour suggests that a particular action may
have different consequences in different situations.
⊚ true
⊚ false
19) Most organizational topics may be studied from all three levels of analysis: individual, team,
and organization.
⊚ true
⊚ false
20) The contingency anchor in organizational behaviour suggests that we need to diagnose the
situation to identify the most appropriate action under those specific circumstances.
⊚ true
⊚ false
21) An inclusive workplace values people of all identities and allows them to be fully themselves
while contributing to the organization.
⊚ true
⊚ false
