All the business forms listed below have limited liability except: A. Subchapter
ID: 2587351 • Letter: A
Question
All the business forms listed below have limited liability except: A. Subchapter "S" corporation. B. General partnership C. Limited liability company. D. Corporation. 27. The importance of a subchapter S corporation is: A. its treatment of shareholders for income taxation purposes. B. its requirement of restrictive transfer rights of the shares. C. its small cost of formation. D. its organizational structure. 8. A type of law that is not include in the category "Land Use Law" is: A. Flood control easement B. Common Law tort of "nuisance" C. City zoning ordinances D. County ordinances governing the size of streets in planned unit developments 29.Explanation / Answer
Solution :
27 : Ans B : General Partnership
Limited Liability is a type of liability that does not exceed the amount invested by a investor in a company or a Limited Liability partnership. Therefore all companies (eg private ) and limited liability firms have limited liability except general partnership as it has unlimited liability. In general partnership partner's utilise their personal assets for paying the debt of there partnership firm in case partnership assets fall short for that. This is not in case of S coporation , limited liability partnership and subchapter S coporation. The owners of these firms have Liabilities limited to their investment in these firms. Hence it is limited.
Ans : 28 : A : Its treatment of shareholders for income taxation purposes.
The sub chapter S corporation is more attractive to business owners than any other forms (eg C corp.). And this is due to its appealing taxation policies. The S coporation allowes the income or loss in the companies transaction directly to flow to its owners i.e its shareholders before tax effect. In other cases it used to be like company needs to pay taxes on there income and than the income after taxes wss distributed amongst the shareholders, and after that even the shareholders needed to pay taxes on that. This caused double taxation. As a result of this there is only one level of federal tax to pay.
Ans : 29 : B Common law tort of nuisance.
Land use law and Zoning law is the regulation for the proper use and development of private and public real estate properties. It consists of zoning law which is one of the Common form of land use regulation. It includes flood control easement which comes under the purview of Zoning law, City zoning ordinances, county ordinances governing the sizes of street's in planned unit of developments. Nuisance is a law tort it means it causes offence, annoyance, injury or trouble. Nuisance can be private or public. Therefore it comes under different regulation and law hence not included in Land use law. All the above comes under the purview of land use lae except nuisance, therefore it is not connected with land use law in any form.
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