HS 331 Business Owner Planning Practice Questions & Answers • ExamPrepare

49 questions in this view

Page 1 of 9

Question 1

Identify the document that describes the duties and powers of directors and shareholders, as well as rules for corporate meetings:

Select an answer above, then submit your vote. Reading or practicing does not cast a vote.

Which of the following best describes how a sole proprietorship is formed?

Select an answer above, then submit your vote. Reading or practicing does not cast a vote.

Explain how IRC Sec. 6166 contributes to providing estate liquidity when a family business is left through a will:

Select an answer above, then submit your vote. Reading or practicing does not cast a vote.

Which of the following statements concerning stock redemption agreements for an S corporation is correct?

The premiums paid by the corporation for the life insurance funding are paid from taxable income.
A redemption distribution will generally result in the receipt of ordinary income by the estate.
Life insurance premiums paid by the S corporation will increase the tax basis of the shareholders.
The life insurance funding the agreement increases the exposure to the accumulated earnings tax.

Select an answer above, then submit your vote. Reading or practicing does not cast a vote.

Identify the two basic split-dollar methods or "regimes" available to employers and employees:

Select an answer above, then submit your vote. Reading or practicing does not cast a vote.

Which of the following best describes the structure of a cross-purchase agreement in an insured corporate buy/sell agreement?

The corporation owns and pays premiums for life insurance policies on all shareholders
Each shareholder owns and pays premiums for life insurance policies on other shareholders
A trustee owns and manages all life insurance policies for the shareholders
The corporation is the beneficiary of all life insurance policies on shareholders

Select an answer above, then submit your vote. Reading or practicing does not cast a vote.