John Wants to Start a New Business and Prefers to Keep

question 56

Multiple Choice

John wants to start a new business and prefers to keep the paperwork simple and avoid large legal fees. Further, he does not want his personal property attached to the business. In this scenario, John should start his business as a __________.

• A) corporation
• B) partnership
• C) limited liability corporation
• D) sole proprietorship

Identify strategies for managing risk using futures contracts for both hedgers and speculators.

Understand the calculation and implications of profit, loss, and basis in futures contracts.

Describe the regulatory and tax considerations relevant to futures trading.

Understand the fundamental principles of social network theory and its application in crafting platform-relevant messages.

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Definitions:

Open Market

An economic system in which prices for goods and services are determined by unrestricted competition between privately owned businesses.

Stockholders

Individuals or entities that own shares in a corporation, thereby having an ownership interest in the company.

Stock Repurchase

When a company buys back its own shares from the marketplace, reducing the amount of outstanding stock on the open market.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional stocks.