Which Organisational Form Would Be Best If the New Company

question 30

Multiple Choice

Which organisational form would be best if the new company owners intend to provide extensive fringe benefits for owners or employees that would not be treated as taxable income to employees?

• A)Sole proprietorship.
• B)Partnership.
• C)Company
• D)Limited liability company.

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Definitions:

Sacrifice Ratio

The measure of economic costs associated with reducing inflation through monetary policies, typically represented as the loss in output per percentage point decrease in inflation.

Inflation Expectations

The rate at which consumers, businesses, and investors expect prices to rise in the future.

Phillips Curve

A macroeconomic theory that suggests unemployment and inflation have a stable and inverse relationship, indicating trade-offs short-term policy-making.

Disinflation

A reduction in the rate of inflation, indicating a slowdown in the rate at which prices are rising.