The answer is b.
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Answer:
A. Yes, because the corporation would be required to pay tax on its profits, and the shareholders would also be required to pay taxes on dividends
Answer:
The correct answer is the option A: the company's present business offer attractive growth opportunities and can be counted on to create economic value for shareholders.
Explanation:
To begin with, the fact that a company faces the dilemma between continue with the current business lineup or change it in order to begin producing a new one by starting from zero then a lot of variables must be taken care of and considered, that is, that at the moment of making the final decision the managers must understand the opportunity costs that can affect the organization and moreover the benefits that the actual lineup makes. That is why, that at the time of sticking with the current business lineup it makes sense to continue with the current one when the company's present business offer attractive growth opportunities and can be counted on to create economic value for shareholders.
A company may focus on lost contribution margin or prepare comparative income statement when making a product line decision
<h3>What is income statement?</h3>
An income statement can be regarded as financial statement which helps to display company's income and expenditures.
It is a financial statement that shows you the company's income and expenditures. It also shows whether a company is making profit or loss.
Hence, when making a product line decision, a company may focus on lost contribution margin and avoidable fixed costs or prepare comparative income statement.
Learn more about income statement here : brainly.com/question/21851842
