NASCLA Contractor's Guide Questions with complete solution 2023/2024

NASCLA Contractor's Guide Questions with complete solution 2023/2024Key characteristics of sole proprietorships - correct answer Taxes: Your net income from the business is reported as ordinary income. sole proprietors do not pay corporate income taxes Advantages of General Partnership - correct answer -ease of formation -direct profit rewards -larger management base than that of a sole proprietorship Disadvantages of a general partnership - correct answer unlimited liability, Multiple decision makers, limited life of business, changing partners may be difficult, partnership dissolves in event of death C corporations - correct answer Liability: The owners of the corporation, known as stockholders, are not personally liable for the losses of the business More complex to operate and shareholders may be double taxed on their earnings. S corporation - correct answer Passes its items of income, loss, deduction, and credits through to its shareholders to be included in their separate returns Joint Ventures - correct