Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a corporation. What is one advantage to Jeremy of setting up his business as a corporation?
A) By setting up the business as a corporation, Jeremy would not face double taxation.
B) By setting up the business as a corporation, Jeremy would have the ability to share risk with shareholders.
C) By setting up the business as a corporation, Jeremy would have both ownership and control over the business.
D) All of the above would be advantages of setting up his business as a corporation.
Answer: B
You might also like to view...
The law of diminishing marginal returns per worker states that beyond some point:
a. marginal satisfaction declines per unit. b. decreases in capital per worker add more to output per worker. c. marginal satisfaction increases per unit. d. increases in capital per worker add less to output per worker.
Refer to Figure 6.3. On this graph, area BCEO represents:
A. producer surplus. B. total surplus. C. consumer expenditures. D. firm profits.
Related to the Economics in Practice on p. 67: Consumption of quinoa has been on the rise. Many people put quinoa in their yogurt, which would make yogurt and quinoa ________, and therefore a decrease in the price of yogurt should ________ the demand for quinoa, ceteris paribus.
A. substitutes; decrease B. complements; decrease C. complements; increase D. substitutes; increase
Refer to the above figure. The profit-maximizing price and output for this monopolist are
A) a price of P1 and output of Q1. B) a price of P4 and output of Q1. C) a price of P2 and output of Q2. D) a price of P3 and output of Q3.