What are the advantages and disadvantages of organizing a business as a corporation? 2. How does a partnership differ from a limited liability company? 3. Why do corporates file for bankruptcy? 4. What advantage does a stock market provide to investors of corporations? 5. Solve the following problem: . You are a shareholder in an S corporation that has income before taxes of $4 million. . Once the firm has paid taxes, It will distribute the rest of its comings to its shareholders as a dividend. . There are 1 million shares outstanding . Assume the corporate tax rate is 34%%, and the personal tax rate on dividend income is 20%. . As a shareholder with 100 shares, how much will you receive after all taxes are paid?

Answer rating: 100% (QA)

1 Advantages and Disadvantages of Organizing as a Corporation Advantages Limited Liability Shareholders are generally not personally liable for the corporations debts and liabilities Continuity and Pe... View the full answer