Ben Just Got a High-Paying Job and Wants to Buy

question 110

Multiple Choice

Ben just got a high-paying job and wants to buy an expensive car.However,he was raised in a family where spending on luxury is considered wasteful.Even though Ben dreams of replacing his old car with an expensive one,he is very concerned about how his parents and relatives will react to his purchase decision.Which of the following best reflects Ben's concern?

• A) Financial risk
• B) Social risk
• C) Performance risk
• D) Physical risk
• E) Time risk

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Definitions:

C-corp

A corporation in the United States that is taxed separately from its owners, known as shareholders, under the subchapter C of the Internal Revenue Code.

S-corp

A specific designation for a corporation that allows income, losses, deductions, and credits to be passed through to shareholders for federal tax purposes, avoiding double taxation.

Double Taxation

The financial imposition where income taxes are paid twice on the same source of earned income, often in the context of corporate profits taxed both at the corporate level and again when distributed as dividends.

Independent Contractors

Workers who provide services to a business under terms specified in a contract, rather than as employees.