SIE Exam Question 422: Answer and Explanation

Question: 422

Each of the below business enterprises exhibit flow-through of tax and related consequences except:

• A. DPP
• B. LLC
• C. Sub S
• D. C corp

Correct Answer: D

Explanation:

D: The regular corporation, known as the C corp., has its profits taxed under the Internal Revenue Code. The other three business types in this question are not subject to IRS taxation of their profits.