Question

A type of business entity that provides liability protection but is taxed like a partnership is a:

1) Franchise
2) General partnership
3) C corporation
4) S corporation
5) Joint venture

Answer 1

An S corporation is a type of business entity that provides liability protection but is taxed like a partnership. So, the correct answer is option 4.

Step-by-step explanation:

A type of business entity that provides liability protection but is taxed like a partnership is an S corporation.

An S corporation is a special type of corporation that allows the profits and losses of the business to be passed through to the owners' personal tax returns, similar to a partnership. This means that the S corporation itself does not pay income tax, but the owners are responsible for reporting their share of the business's profits or losses on their personal tax returns.

So, the correct answer is option 4.