Angelica wants to open a restaurant and is thinking of setting it up as a corporation. What are the advantages and disadvantages she will face by setting up the business as a corporation as opposed to a sole proprietorship or a partnership?
What will be an ideal response?
As a corporation, Angelica has the advantages of limited personal liability and a greater ability to raise funds. The disadvantages include the cost to organize the business as well as the possible double taxation of income at both the corporate level and at the income level for shareholders who earn dividends.
Economics
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The relative price of a magazine in the above figure is
A) 0.5 of a hamburger per magazine. B) 1 hamburger per magazine. C) 1.33 hamburgers per magazine. D) 8 hamburgers per magazine.
Economics
Refer to Table 17-2. The marginal profit from hiring the second unit of labor is
A) $4,200. B) $1,960. C) $1,800. D) $1,450.
Economics