Dori and Matt Will Be Equal Owners of a New

question 121

Multiple Choice

Dori and Matt will be equal owners of a new business and will be making cash contributions to start up the business.They expect substantial losses in the early years so the business will take out a loan from the bank which Dori and Matt will have to guarantee.For tax purposes,the preferred business form for these early years will be

• A)a C corporation.
• B)an S corporation.
• C)an LLC,taxed as a partnership.
• D)either an S corporation or an LLC (partnership).The owners will be indifferent between these two forms.

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Definitions:

C. Wright Mills

An American sociologist best known for his theories on the power elite and the sociological imagination, bridging the gap between individual experiences and broader social structures.

Deprivation Amplification

The process by which existing inequalities are exacerbated by societal structures, leading to greater disparity.

Louisville Residents

Pertains to individuals who live in or are from Louisville, a major city in the state of Kentucky, USA.

Rates of Illness

The frequency or incidence of disease occurrence within a specified population or area over a particular period of time.