Jane Doe, Who Has Substantial Personal Wealth and Income, Is

question 38

Multiple Choice

Jane Doe, who has substantial personal wealth and income, is considering the possibility of starting a new business in the chemical waste management field. She will be the sole owner, and she has enough funds to finance the operation. The business will have a relatively high degree of risk, and it is expected that the firm will incur losses for the first few years. However, the prospects for growth and positive future income look good, and Jane plans to have the firm pay out all of its income as dividends to her once it is well established. Which of the legal forms of business organization would probably best suit her needsσ

• A) proprietorship, because of ease of entry.
• B) s corporation, to gain some tax advantages and also to obtain limited liability.
• C) partnership, but only if she needs additional capital.
• D) regular corporation, because of the limited liability.
• E) in this situation, the various forms of organization seem equally desirable.

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Definitions:

Indirect Institutional Change

The gradual transformation of institutions through unintended or secondary effects of policies, actions, or broader societal shifts, not through direct reform efforts.

Direct Individual Change

Personal transformation or development initiated and completed by an individual through their own efforts.

Multiracial Social Movements

Collective efforts by groups composed of individuals from multiple racial backgrounds aiming to address and advocate for racial and social justice issues.

Color-Blind Ideology

A belief that disregarding racial characteristics promotes racial equality by treating all individuals as equally as possible, without regard to race, culture, or ethnicity.