All of the Following Are Factors That Influences the Determination

question 90

Multiple Choice

All of the following are factors that influences the determination of the type of legal structure to utilize in commencing business operations,EXCEPT:

• A) Ease of business set-up and operation
• B) The degree of control which an owner(s) desire(s)
• C) The magnitude of wealth an individual(s) is/are trying to make
• D) The magnitude of risk an individual(s) is/are willing to take on
• E) The capacity of an individual(s) to provide the financial needs required

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Definitions:

Common Shares

Units of ownership interest in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Dividends Declared

Dividends declared are the portion of a company's earnings that the board of directors decides to distribute to shareholders.

Shareholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities, essentially the net worth attributable to shareholders.

Liabilities

Financial obligations or debts that a company owes to external parties or creditors.