BULW 301 EXAM 3 questions n answers
graded A+ updated
Kari is the sole proprietor of Living Earth Garden Shop. As a sole proprietor, on the business's
profits, Kari pays:
a. No income taxes
b. Only personal income taxes
c. Only business income taxes
d. Both personal and business income taxes - correct answer ✔✔Only personal income taxes
Perform all acts reasonably appropriate and necessary to accomplish its corporate purpose -
correct answer ✔✔Wild & Scenic River Tours, Inc., is a corporation. Wild & Scenic has the
implied power to:
a. Issue stocks and bonds
b. Execute contracts and negotiable instruments
c. Buy and sell (or lease) property
d. Perform all acts reasonably appropriate and necessary to accomplish its corporate purpose
Domestic Corp - correct answer ✔✔incorporated in and doing business in one state
Foreign Corp - correct answer ✔✔Incorporated in one state but does business in other states
Alien Corp - correct answer ✔✔Incorporated outside of the US but does business in other states
Private corp - correct answer ✔✔not publicly traded
, Publicly-Held Corp - correct answer ✔✔for-profit corp and its shares are publicly traded
What is an example of a Public Corp? - correct answer ✔✔Tennessee Valley Authority
T/F: A public corp may not become a private corp. - correct answer ✔✔False
Closed Corp - correct answer ✔✔Small # of stockholders and is usually owned by a whole
family; only found in certain states with laws to allow this
What are the requirements to become a Closed Corp? - correct answer ✔✔No public offering of
stock and small number of shareholders
S Corporations - correct answer ✔✔A type of closed corporation that refers to a specific sub-
chapter in the IRS code, taxed as a pass-thru entity; must exist in a state that allows closed
corporations
What are the requirements for S Corporations? - correct answer ✔✔1) Must be a domestic
corporation
2) May bot be a member of an affiliated group of corporations
3) SH must be estates, trusts, people or other tax exempt organizations
4) Must be fewer than 100 SH
5) Only one class of stock
6) No non-resident Alien SH
Has to be family owned and ran - correct answer ✔✔Which of the following is not a
requirement for an S Corporation?
A) SH must be estates, trusts, people or other tax exempt organizations
B) SH can not live outside of the US
graded A+ updated
Kari is the sole proprietor of Living Earth Garden Shop. As a sole proprietor, on the business's
profits, Kari pays:
a. No income taxes
b. Only personal income taxes
c. Only business income taxes
d. Both personal and business income taxes - correct answer ✔✔Only personal income taxes
Perform all acts reasonably appropriate and necessary to accomplish its corporate purpose -
correct answer ✔✔Wild & Scenic River Tours, Inc., is a corporation. Wild & Scenic has the
implied power to:
a. Issue stocks and bonds
b. Execute contracts and negotiable instruments
c. Buy and sell (or lease) property
d. Perform all acts reasonably appropriate and necessary to accomplish its corporate purpose
Domestic Corp - correct answer ✔✔incorporated in and doing business in one state
Foreign Corp - correct answer ✔✔Incorporated in one state but does business in other states
Alien Corp - correct answer ✔✔Incorporated outside of the US but does business in other states
Private corp - correct answer ✔✔not publicly traded
, Publicly-Held Corp - correct answer ✔✔for-profit corp and its shares are publicly traded
What is an example of a Public Corp? - correct answer ✔✔Tennessee Valley Authority
T/F: A public corp may not become a private corp. - correct answer ✔✔False
Closed Corp - correct answer ✔✔Small # of stockholders and is usually owned by a whole
family; only found in certain states with laws to allow this
What are the requirements to become a Closed Corp? - correct answer ✔✔No public offering of
stock and small number of shareholders
S Corporations - correct answer ✔✔A type of closed corporation that refers to a specific sub-
chapter in the IRS code, taxed as a pass-thru entity; must exist in a state that allows closed
corporations
What are the requirements for S Corporations? - correct answer ✔✔1) Must be a domestic
corporation
2) May bot be a member of an affiliated group of corporations
3) SH must be estates, trusts, people or other tax exempt organizations
4) Must be fewer than 100 SH
5) Only one class of stock
6) No non-resident Alien SH
Has to be family owned and ran - correct answer ✔✔Which of the following is not a
requirement for an S Corporation?
A) SH must be estates, trusts, people or other tax exempt organizations
B) SH can not live outside of the US
