Which of the Following Is an Advantage of an S

question 18

Multiple Choice

Which of the following is an advantage of an S corporation?

• A) Its stockholders have limited liability.
• B) It can be owned by foreigners or other corporations.
• C) Its earnings are exempt from federal and state income taxes.
• D) It can have more than 100 stockholders.

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Definitions:

Cost Curves

Graphs that illustrate the cost of producing various levels of output, typically including curves for average costs and marginal costs among others.

Marginal Cost

The cost added by producing one additional unit of a product or service, a critical concept in economics and decision making in business.

Average Total Cost

The total cost divided by the number of goods or services produced, indicating the average expense per unit.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output.