Suppose Jon Stewart of the "Daily Show" Makes an Annual

question 153

Multiple Choice

Suppose Jon Stewart of the "Daily Show" makes an annual income of $2,000,000. If he quit his television job and went into producing he could make $400,000 per year. Jon Stewart's annual economic rent to labor is

• A) $1,400,000.
• B) $2,000,000.
• C) $400,000.
• D) $1,600,000.

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Definitions:

Sole Proprietorships

A company that is both owned and run by one person, in which the owner and the company are legally considered the same entity.

Corporations

Legal entities established by individuals, stockholders, or shareholders, with the purpose of operating for profit.

Legal Requirements

Regulations and laws that an entity must follow in its operations, often varying by industry, region, and other factors.

Large Businesses

Companies that typically operate on a large scale with significant asset values, large number of employees, and high volume of sales and production.