Hector Is Considering Expanding His Business and Has Several Potential

question 152

Multiple Choice

Hector is considering expanding his business and has several potential new investors in mind.He originally wanted to form an S-corporation to protect the liability of the investors,but he is now considering a limited-liability company instead because he knows there can be only ____ stockholders in an S-corporation.

• A) 10
• B) 25
• C) 50
• D) 100
• E) 108

---

Definitions:

Commercial Branding

The process of creating a unique identity and image for a product or service in the consumer's mind, mainly for commercial purposes.

Family Branding

A marketing strategy that uses a single brand name for all of a company's products or services to capitalize on brand recognition.

Subbranding

A marketing strategy that creates a subsidiary or secondary brand within a main brand to appeal to different customer segments.

Multiproduct Branding

A marketing approach in which a single name is utilized by a corporation for every item within a given category of products.