Which of the Following Is Not a Possible Advantage of Incorporating

question 17

Multiple Choice

Which of the following is not a possible advantage of incorporating a business?

• A)The ability to defer taxes on income left in the business.
• B)The ability to absorb business losses against employment income.
• C)Limiting personal liability to the amount paid for shares.
• D)The ability to use the lifetime capital gains deduction.

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Definitions:

Total Cost

The complete cost of production, combining both fixed and variable costs.

Units of Output

measure the quantity of goods or services produced by a firm or industry.

Production Function

An equation that describes the relationship between inputs used in production and the quantity of output that is produced.

Minimize Cost

The process of reducing expenses to the lowest possible level while maintaining the quality and efficiency of business operations.