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:

Temporarily Depressed

Refers to an economic condition or market situation where prices or values have declined but are expected to recover in the short term.

Economically Unstable

A condition where an economy experiences frequent and significant disturbances, often due to inflation, unemployment, or political instability.

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.

Forward Contracts

Non-standardized contracts between two parties to buy or sell an asset at a specified future date for a price agreed upon today.