One Reason Many Companies Do Not Organize Themselves as an S

question 271

Multiple Choice

One reason many companies do not organize themselves as an S corporation is that this form of business

• A) is subject to a higher tax rate than a general partnership.
• B) does not provide owners with limited liability.
• C) has a special eligibility restriction, which many businesses are unable to meet.
• D) is much more difficult to set up than C corporations.

Grasp the relationship between price changes and quantity demanded through the substitution and income effects.

Comprehend the construction and interpretation of both demand and supply curves.

Recognize the effects of income changes on consumer behavior and demand for different types of goods (normal and inferior goods).

Identify and differentiate between substitute goods and complementary goods.