Khalid Is a 39-Year-Old,married Business Owner Who Runs a Dry

question 120

Multiple Choice

Khalid is a 39-year-old,married business owner who runs a dry cleaning service with three locations.His personal obligations are the home that he owns with his wife who works for a well-known insurance company;the health needs of his family;and his commitment toward saving for the future higher education needs of his three children.Khalid knows that two of his locations require a large infusion of cash to pay for new and expensive dry cleaning equipment.Although his wife's job provides the family with health insurance,it also places the family in a higher income tax bracket.Khalid would certainly like to minimize his taxes.Which of the following forms of business ownership would you suggest for Khalid? Khalid should consider:

• A)A sole proprietorship due to the fact that it pays its own taxes and it has limited liability.
• B)A sole proprietorship due to the fact that it has unlimited liability and it will protect the family's personal assets.
• C)A corporation because he can avoid the negative aspect of limited liability.Corporations are always taxed at a lower rate than individuals.
• D)A limited liability company because he will only be liable for what he has invested in the business.His personal assets will be protected,and he can be taxed like a sole proprietorship.

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Definitions:

Screening

The process of checking or testing for the presence of disease, defects, or abnormalities in individuals who do not yet exhibit symptoms.

Examination Room

A room in a healthcare facility equipped for conducting medical exams and consultations.

Reception Area

The space in an office or establishment where visitors or clients are greeted and wait.

Herbal Remedies

Medical treatments derived from plants, utilizing extracts or parts such as leaves, roots, and flowers, for therapeutic purposes.