Joey and His Partners Have Started a Corporation in North

question 12

Multiple Choice

Joey and his partners have started a corporation in North Dakota.They could get it incorporated in Illinois if:

• A) incorporation fees are low even if incorporation taxes are very high.
• B) shareholders can actively participate in the management.
• C) incorporation fees and taxes are lower, and there is minimal shareholder interference.
• D) promoters and shareholders are barred from interfering.

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Definitions:

Sales Mix

Refers to the combination of different products or services that a company offers, influencing overall sales and profitability.

Unit Contribution Margin

The difference between the selling price per unit and the variable costs per unit, representing how much each unit sold contributes to covering fixed costs and generating profit.

Break-even Sales

Break-even Sales represent the amount of revenue needed to cover all fixed and variable costs, at which point a business does not make a profit or incur a loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.