Advantages of Hiring One's Own Children to Work in Her/his

question 24

Multiple Choice

Advantages of hiring one's own children to work in her/his business enterprise include which of the following?
I.The corporation can deduct wages paid to the children for work performed.
II.The corporation is required to pay Social Security taxes on the children's earnings.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Marginal Cost

The uplift in total expenditure caused by the production of one more unit of a product or service.

Fixed Cost

Costs that do not change with the level of output produced, such as rent, salaries, and insurance.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in the market, often resulting in higher prices and restricted supply.

Duopoly

A market structure in which two companies own all or nearly all of the market for a given product or service.