Futura Bank Has Liabilities of $8 Million and Net Worth

question 236

Multiple Choice

Futura Bank has liabilities of $8 million and net worth of $1,200,000. Futura Bank's assets are

• A) $1.2 million.
• B) $6.8 million.
• C) $8 million.
• D) $9.2 million.

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Definitions:

Investor-Owners

Individuals or entities that own investment assets, potentially including stocks, bonds, or real estate, aiming to earn a return on their investments.

Limited Liability Company

A business structure that combines the liability protection of a corporation with the tax benefits of a partnership.

Tax Advantages

Tax advantages are financial benefits that reduce the amount of tax owed by individuals or businesses, often through deductions, exemptions, or credits.

Liability Advantages

pertains to the benefits or favorable conditions arising from the structuring of legal entities or arrangements to minimize legal responsibility or financial risk.