What are three fundamental differences between a C Corporation ...

[joe]

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]

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.

[joe]

YES! Correct, THANKS for helping me on my review

[amcvicar]

Thanks for the timely response, appreciate it