Four Unrelated Individuals Acquire Assets on Behalf of Jump Corporation

question 86

Multiple Choice

Four unrelated individuals acquire assets on behalf of Jump Corporation on May 21,2015,purchased assets on June 5,2015,and begin doing business on June 15,2015.They subscribe to shares of stock,file articles of incorporation for Jump,and become shareholders on July 23,2015.The S election must be filed no later than 2 1/2 months after:

• A)May 21,2015.
• B)June 5,2015.
• C)June 15,2015.
• D)July 23,2015.
• E)December 31,2015.

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Definitions:

Economies of Scope

Economies of scope describe cost advantages that enterprises obtain due to a broader scope of operations, where producing a wider variety of goods or services leads to lower average costs.

Economies of Scale

Reductions in the average cost of a product in the long run, resulting from increased production and operational efficiencies.

Learning Curve

The concept that describes how new skills or knowledge can be acquired more efficiently over time, leading to decreased costs and increased productivity.

Long-run Average Cost

The average cost per unit of output over time when all inputs, including capital, are variable, showing economies or diseconomies of scale.