The Key to Choosing the Right Form of Ownership Is

question 14

Multiple Choice

The key to choosing the right form of ownership is ________.

• A)envisioning where your business will be in 10 years
• B)understanding the characteristics of each form and knowing how they affect your business and personal circumstances
• C)forming either an S corporation or a limited liability company since they are the only forms that offer owners liability protection
• D)irrelevant since choosing a form of ownership is merely a technicality and has little impact on the business and its owner(s)

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Definitions:

Supremacy Clause

The provision in Article VI of the U.S. Constitution that declares the Constitution, laws, and treaties of the United States "the supreme Law of the Land."

Article VI

A section of the United States Constitution that establishes the Constitution, federal statutes, and treaties as the supreme law of the land, overriding state laws.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource.

Average Product

Output per unit of a particular input.