Which of the Following Legal Entities Are Generally Classified as C

question 63

Multiple Choice

Which of the following legal entities are generally classified as C corporations for tax purposes?

• A)Limited liability companies.
• B)S corporations.
• C)Limited partnerships.
• D)Sole proprietorships.
• E)None of the choices are correct.

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Definitions:

Purely Competitive Seller

A seller operating in a market where goods are homogeneous, and there are no barriers to entry, allowing for many competitors.

Derived Demand

Demand for a factor of production or intermediate good that occurs as a result of the demand for another related final good or service.

MRP = MRC Rule

The principle that to maximize profit (or minimize losses), a firm should employ the quantity of a resource at which its marginal revenue product (MRP) is equal to its marginal resource cost (MRC), the latter being the wage rate in a purely competitive labor market.

Marginal Productivity

The additional output generated by employing one more unit of a specific factor of production while holding other factors constant.