Owners of Which of the Following Entity Types Receive Deductible

question 67

Multiple Choice

Owners of which of the following entity types receive deductible compensation from the entity for working for the entity?

• A)Sole proprietorship
• B)Entity taxed as a partnership
• C)S corporation
• D)Two of the above

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Definitions:

Isoquant

A curve representing all the combinations of inputs that yield the same level of output.

Isocost Line

A graph that shows all possible combinations of labor and capital that can be purchased for a given total cost.

Returns to Scale

The rate at which production output increases in response to a proportional increase in all inputs (factors of production).

Long-run Average Costs

The average cost per unit of output when all factors of production and costs are variable in the long run.