David Dworkin Is the Founder and Owner of Swoozie's,a Chain

question 15

Multiple Choice

David Dworkin is the founder and owner of Swoozie's,a chain of stores that carry diverse lines of wrapping paper,stationery,invitations,and gifts for affluent women.He opened the business with his own money and that of investors who saw profit potential in his idea.Dworkin is an example of which of the following?

• A) a franchisor
• B) a venture capitalist
• C) a franchisee
• D) an entrepreneur

---

Definitions:

Earnings and Profits

A measure used for tax purposes, representing a corporation's net income plus or minus certain tax-preferred items.

Cash Dividend

A payment made by a corporation to its shareholders, usually in cash, out of its profits or reserves.

Basis

The amount of investment in property for tax purposes, used to calculate gain or loss upon sale or disposition of the property.

Subchapter S

A designation of corporation that meets specific Internal Revenue Service criteria, allowing it to be taxed as a pass-through entity, avoiding double taxation.