Hudson and Ilka Want to Market a New Line of Kayaks

question 21

Multiple Choice

Hudson and Ilka want to market a new line of kayaks and related gear under the brand name Journeys as a corporation-Journeys,Inc.To avoid income taxes at the corporate level,they should form

• A)a C corporation.
• B)a close corporation.
• C)an S corporation.
• D)a private corporation.

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Definitions:

Financial Position

The status of the assets, liabilities, and equity of an entity as reflected on its financial statements at a specific point in time.

Apparent

Clearly visible or understood; obvious.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.

Trade Credits

An agreement where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.