Which of the following is the MOST compelling argument for incorporating a business?
A) to hire more employees
B) to avoid paying federal taxes
C) to protect the owners' personal assets
D) to complete minimal legal requirements
E) to avoid lots of paperwork
C
Explanation: C) Unlike sole proprietors and partnerships, a corporate structure provides limited liability, thus protecting owners' personal assets. When a corporation runs into problems, only the corporate assets are at risk. The owners are not personally liable for business debt.
You might also like to view...
The FASB and the IASB jointly issued a comprehensive principles-based revenue recognition Model entitled
A) Revenue Recognition. B) Revenue from Contracts with Customers. C) Principles of Revenue Recognition. D) Principle-Based Rules of Revenue Recognition.
At the beginning of the year, a firm leased equipment on a capital lease, capitalizing $60,000 in both its lease liability and leased assets accounts. The contract calls for December 31 payments of $15,000 . The lessee's annual reporting period ends December 31 and the contract reflects 10% interest. The lessee made the first payment as required. The direct method statement of cash flows for the
lessee should reflect which of the following in the first year of the lease contract (ignore noncash disclosures)? a. $15,000 financing cash outflow b. $15,000 operating cash outflow c. $6,000 operating cash outflow; $9,000 financing cash outflow d. $9,000 financing cash outflow
A television commercial shows several men and women exercising using a certain type of exercise equipment in a health club. Each person in this commercial is in very good physical condition and is enjoying the exercise routine
What style of learning is being encouraged in this commercial? Explain your response.
The cost complement is an average figure based upon the total cost of merchandise and its total retail value
Indicate whether the statement is true or false