Zach Inherited a Large Amount of Money from His Uncle

question 23

Multiple Choice

Zach inherited a large amount of money from his uncle. Zach wishes to start a business with his college friend, and his lawyers encourage him to make it a corporation. What is the advantage of forming a corporation instead of a partnership?

• A) limited liability
• B) ease of start-up and administration
• C) pass-through taxation
• D) double taxation

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Definitions:

Sweatshop

A workplace where workers are subject to extreme exploitation, including below-standard wages, long hours, and poor working conditions that may pose health or safety hazards.

Race To The Bottom

A socio-economic phenomenon where countries or companies compete by undercutting each other in standards, such as labor rights and environmental regulations, to attract business.

Sweatshop

A pejorative term for a workplace that has very poor, socially unacceptable working conditions, often where workers are exploited.

Contingent Work

Employment that is uncertain, unpredictable, or not guaranteed, often with irregular hours and lack of job security.