Benefits to Incorporating a Small Business with One Owner Include

question 24

Multiple Choice

Benefits to incorporating a small business with one owner include all of the following EXCEPT

• A) the ability to raise capital through public offerings.
• B) the small business tax credit on income below $200,000.
• C) the ability to limit liability to the amount invested in the company.
• D) the $500,000 capital gains exemption for qualified small business shares.

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Definitions:

Peer Lending

A financial transaction in which individuals lend money to each other directly, often facilitated by an online platform, bypassing traditional financial intermediaries.

Savings Deposits

Accounts in financial institutions that allow individuals to deposit money and earn interest over time.

Import Substitution

An industrial trade strategy that favors developing local industries that can manufacture goods to replace imports.

Export Promotion

A trade policy designed to encourage exports.