Harry and Ilene Want to Market a New Line of Kayaks

question 67

Multiple Choice

Harry and Ilene want to market a new line of kayaks and related gear under the brand name Journeys as a corporation-Journeys Inc. To avoid income taxes at the corporate level, they should form​

• A) ​an alien corporation.
• B) ​a close corporation.
• C) ​an S corporation.
• D) ​a private corporation.

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Definitions:

American-Style Options

Options contracts that can be exercised at any time up to the expiration date, providing more flexibility than European-style options.

Maturities

The set dates at which a bond or other financial instrument's principal amount is due to be paid back to the investor.

LEAPS

Long-Term Equity Anticipation Securities, which are options contracts with expiration dates longer than one year, offering longer-term investment strategies.

Initial Maturities

The original duration until the expiration or due date of a financial instrument, such as a bond or loan, when first issued.