Author Question: What are three fundamental differences between a C Corporation and an S Corporation? What will be ... (Read 96 times)

joe · **on:** Aug 10, 2018

What are three fundamental differences between a C Corporation and an S Corporation?

What will be an ideal response?

Question 2

Explain how performance appraisals relate to compensation.

What will be an ideal response?

tennis14576 · **Reply #1 on:** Aug 10, 2018

Answer to Question 1

The purpose of this question is to reinforce to students the differences between a C Corporation and an S Corporation. Three fundamental differences between these two corporation types are:

1) Limitations on the number of allowed shareholders

2) Differences related to income taxes due on distributed versus non-distributed profits

3) Variation in personal income tax rates to be paid on operational profits

Answer to Question 2

Employees are typically informed about compensation increases during performance appraisal sessions. These meetings should focus on the extent to which employees met or exceeded agreed-upon standards. These sessions should also be used to set expectations for the next appraisal period.