1.What are the major variables that affect the magnitude of the pretax corporate rate of return, Rc? Give examples to illustrate the importance of each variable. Is it possible to rank the importance...

1.What are the major variables that affect the magnitude of the pretax corporate rate of return, Rc? Give examples to illustrate the importance of each variable. Is it possible to rank the importance of each variable?

2. Why might one group of investors prefer the corporate form, whereas another group of investors prefers the partnership form?

3. What factors might lead to cross-sectional and time-series differences in corporate tax rates, personal tax rates, and shareholder-level tax rates? How do these differences affect tax planners? How do these differences affect tax policymakers?

 4. Explain the “check-the-box” election. Prior to this election, how did the IRS determine whether a business was taxed at the entity level or as a pass-through entity?