Answer:
S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.
Explanation:
There are specific pre-requisites before a company may apply as an S corporation
- It implies that corporation shareholders must be U.S. residents only who directly own the shares.
- Maximum 100 shareholders can be part of S corporation.
- The stock options are restricted to one class only.
The limited stock options, no foreign investment challenges and limitation of maximum shareholders create a barrier to open S type corporation. So the answer is S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.
Answer:
Production opportunities, time preferences for consumption, risk, inflation. Explanation: The cost of money is the interest rate that lenders charge borrowers, and is determined by the supply and demand of funds.
