What Possible Advantages of Each Form of Business Vehicle Should

question 23

Multiple Choice

What possible advantages of each form of business vehicle should an entrepreneur contrast when attempting to achieve the profit motive?

• A) marginal personal tax rate versus prime corporate tax rate
• B) prime personal tax rate versus marginal corporate tax rate
• C) personal tax rate versus marginal corporate tax rate
• D) marginal personal tax rate versus corporate tax rate

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Return on Assets

A profitability ratio indicating the efficiency with which a company uses its assets to generate net income, calculated by dividing net income by total assets.

Return on Equity

A financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how effectively equity supports operations and growth.

Earnings Per Share

A measure of a company's profitability calculated by dividing its net income by the number of outstanding shares of its common stock.