Answer:
option (a) is correct.
Explanation:
Economic profits refers to the profits which comes out after deducting the implicit costs and explicit costs from the total revenue.
Whereas the accounting profits takes into the effect of explicit costs only.
Implicit cost refers to the loss of money income by choosing some other alternative. It is also known as the opportunity cost.
Explicit costs refers to the costs that are incurred for operating or running a business.
Accounting profit = Total revenue - Explicit costs
Economic profit = Total revenue - Explicit costs - Implicit costs
Therefore, if the implicit costs are greater than zero then the economic profits is less than the accounting profits.
Answer:
The answer is: C) S corporation
Explanation:
Geneva should choose an S Corporation. In my opinion she should do it because corporate income, losses, deductions, and credits are passed through to its shareholders, while it can be managed like a normal corporation.
If she chooses a Limited Liability Partnership she would still have to share management responsibility with her partners and C Corporations are heavily taxed. If she had enough money she could start a sole proprietorship business, but she doesn't have enough money.
By doing this, Dew was able to create a stronger bond with the customer and their brand. They already have brand awareness with their customers but now they are able to engage their customers by allowing them to have a "say" in their products. They are letting them design a product they would like to see on the market and become a part of the brand/company.
