W7 - P1

What is the primary purpose of a business entity?

• To define the business's marketing strategy.

• To structure the business in terms of who is involved and how it's taxed.

• To determine the business's product offerings.

• To manage daily operational tasks.

Which type of corporation allows for an unlimited number of investors?

• S Corporation

• LLC

• Sole Proprietorship

• C Corporation

What is a key advantage of an S Corporation over a C Corporation regarding taxation?

• S Corporations offer unlimited investors.

• S Corporations have more complex tax structures.

• S Corporations are taxed only at the individual level, avoiding double taxation.

• S Corporations do not provide liability protection.