Phillip and Reed Have Developed a New Technology for Home

question 25

Multiple Choice

Phillip and Reed have developed a new technology for home computer systems.However,they need to raise a large amount of capital to build the production and support facilities to market their product successfully.Which of the following business types would be best suited to help the business raise the necessary capital to begin production?

• A)Limited liability partnership
• B)Proprietorship
• C)Partnership
• D)Company

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Definitions:

Gross Earnings

Gross earnings refer to the total income earned by an individual or company before any deductions such as taxes or other withholdings.

Taxes Applied

The implementation of tax rates to various forms of income, activities, or transactions.

FICA Taxes

Federal Insurance Contributions Act taxes, which fund Social Security and Medicare, required to be paid by both employees and employers.

Unemployment Tax Rates

Refers to the taxes that employers must pay to the government, usually at the state level, based on a percentage of the total payrolls of their employees to fund unemployment compensation programs.