What Will Be the Result If a Company Grows and Achieves

question 8

Multiple Choice

What will be the result if a company grows and achieves a negative performance spread?

• A) Value destruction
• B) Value maintenance
• C) Value creation
• D) Value opportunity forgone

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Definitions:

Limited Liability Company

An enterprise structure that fuses the tax handling advantages of partnerships or sole proprietorships with the limited liability feature of corporations.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders. Corporations enjoy many of the rights and responsibilities that individuals possess.

Corporate Double Taxation

A tax principle where a corporation's income is taxed at both the corporate level and again as shareholder dividends at the personal level.

Personal Liability

The responsibility of an individual to bear the loss or to repay the debt from their own assets.