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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.12 Stock  >  4.12.2 Family Business Stock  >  Basic Quiz

Basic Quiz - 4.12.2 Family Business Stock

1. In recent history, most job creation has come from large companies.
           
2. Family owned companies are always structured as S corporations.
           
3. A family business owner can either give business stock to charity or cause the business to give its assets directly to charity.
           
4. The majority of family businesses are sold rather than passed on to family members.
           
5. When a business owner transfers the family business to another family member, a family/business succession plan is required.
           
6. Planning issues raised by transfers of family businesses are generally the same regardless of whether the business is structured as a C Corporation or S Corporation.
           
7. A combination gift and sale may allow a family business owner to completely bypass capital gain on the sale portion of his or her business.
           
8. The 30% AGI limitation applies to all charitable gifts involving long term capital gain (LTCG) shares of a family business.
           
9. If a family business wants to redeem stock shares from a charity following a gift of those shares to charity, it is important that no prearranged agreement be made prior to the gift.
           
10. The value of shares in a family business is determined for gift purposes by looking at the business balance sheet.