How does an S-corporation differ from a limited-liability company? Does an LLC type of ownership appeal to you? Explain your answer.

What will be an ideal response?


A limited-liability corporation (LLC) is not restricted to 100 stockholders which is a limitation of an S-corporation. LLCs are also less restricted with more flexibility than S-corporations. Answers will vary, but most students will say that the LLC form of business organization appeals to them due to pass-through taxation and limited-liability protection. 

Business

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In a bidding model, once we have a bidding strategy that maximizes the expected profit, we should no longer consider the bidder's aversion to risk

a. True b. False Indicate whether the statement is true or false

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Asset allocation represents an attempt by individuals or portfolio managers to determine what?

A. percentage of assets should be distributed to beneficiaries. B. mutual funds are appropriate for investment based on risk and return. C. percent of funds under management should be invested in stocks, bonds, and the like. D. brokerage houses best meet their needs.

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Which of the following statements regarding education is false?

A. Education is increasingly critical for a "family wage" job. B. Traditional high-paying manufacturing jobs that required relatively little education are rapidly disappearing. C. Education clearly drives income in today's economy. D. Education does not influence how one thinks, makes decisions, and relates to others. E. Education has a strong influence on one's tastes and preferences.

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In the short run, the home country of an MNE will likely experience an employment decline when production is shifted overseas. 

Answer the following statement true (T) or false (F)

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