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Norma-Jean [14]
3 years ago
8

According to lan Redpath and Robert Lickwar, which of the following is correct regarding calculation of the business interest li

mitation?
A. For a C corporation, it is calculated at the stockholder's level.

B. For a partnership, it is calculated at the entity level.

C. For a partnership, it is calculated at the partner level.

D. For an Scorporation, it is calculated at the shareholder level.
Business
1 answer:
finlep [7]3 years ago
3 0

Answer:

B, For a partnership, it is calculated at the entity level.

Explanation:

For a partnership, it is calculated at the entity level. This is to ensure that double income computation is avoided.

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The graph has been attached.

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a. Please see attached graph with the shaded budget set labelled A

b. Please see attached. Curve C; D and E are the indifference curves. The most suitable one would be D since it is on the budget curve. E is not maximum utility and C is unattainable given his budget of $20.

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At E, Utility = 5 + 2(5) = $15. This is below his budget.  

The Indifference curve that gives most utility is D, where cheese is 10 and cocoa is 5 units.

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7g-9 ( 2g + 1 ) = 13
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