ADM 1101 Study Guide - Canadian Business, Corporate Social Responsibility

Which of the following items may NOT create an NOL? 1--Soleproprietorship loss. 2--Employee business expense. 3--Casualty loss. 4--Medical expense.

Which has the greater chance of audit and why: a form 1040 with$200,000 AGI, all of which is salary income, or a form 1040 with$200,000 AGI, all of which is net profit from a soleproprietorship?

Using a list of corporate characteristics, the student willindicate whether the characteristic is an advantage or adisadvantage for the corporate form

Does anybody know how to start figuring which is an ADVANTAGE orDISADVANTAGE???

Options or term examples are

1. Ownership and management are separated

2. The entity has a continuous life.

3. Transfer of ownership is easy.

4. Stockholder's liability is limited.

5. Exposure to double taxation is evident, (that sounds bad)

6. An entity can raise MORE money than a partnership or soleproprietorship.

7. Government regulation is expensive.

Financial Accounting