Which of the Following Business Organizational Forms Provides the Owners

question 27

Multiple Choice

Which of the following business organizational forms provides the owners with limited investor liability and passes its income before taxes through to the owners?

• A)partnerships and S corporations
• B)S corporations and C corporations
• C)C corporations and limited liability companies (LLCs)
• D)S corporations and limited liability companies (LLCs)

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Definitions:

Take a Loss

To realize a financial loss on an investment or transaction, often as a result of selling assets for less than their purchase price.

Short Run

A period in economics during which at least one input (e.g., factory size) is fixed and cannot be changed.

Long Run

A period of time in economics during which all factors of production and outputs are variable, allowing for full adjustment to changes.

Perfect Competitor

A theoretical concept in which a market structure has many small sellers, all producing homogeneous products with no control over market price.