Two of Your Friends Are Horse Fanatics

question 335

True/False

Two of your friends are horse fanatics. They inherited several acres of land that they turned into a retirement sanctuary for racehorses. Serenity Stables was originally incorporated as a limited liability company. The members are reevaluating this form of ownership. Unlike an S corporation, they now pay self-employment taxes on all company profits-not just on the salaries they pay themselves.

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Definitions:

Economic

Pertaining to the production, distribution, and utilization of goods and services, or the financial aspects of a region or society.

Organizational Chart

A diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Proposal

A document that offers a solution to a problem or a course of action in response to a need.

Manager

a person responsible for controlling or administering an organization or group of staff.