Answer:
C:Oligopolies involve more than one company while monopolies involve only one.
Explanation:
A monopoly is a market structure with one supplier serving a very large market. In a monopoly, a single firm sells to many buyers. The product or service offered by a monopoly has no close substitutes. Customers have no choice but to buy from the only firm providing the product or service. Monopolies may result from government policy or very restrictive barriers of entry.
An oligopoly is a market structure where very few firms dominated the market . It when four or five firms control the majority market share of a very large market. There could be other firms with very little market share. Firms in an oligopoly market may sell homogeneous or differentiated products. The few firms dominating the industry collaborate to profit from the market.
Answer: 8%
Explanation:
Profit Margin = Net income / Net sales
2017 Net income ⇒ $54,400
2017 Net Sales ⇒ $680,000
Profit Margin₂₀₁₇ = 54,400/680,000
= 0.08
= 8%
Answer: b. piercing the corporate veil.
Explanation:
Normally, corporations have limited liability which means that the assets of the shareholders are separate from that of the company and should the company go bankrupt for instance, the assets of the shareholders would be safe and only that of the company could be liquidated.
Sometimes however, the courts can remove this limited liability protection which would enable the assets of the shareholders to be targeted in what is known as "piercing the corporate veil".
There are several reasons this can happen for instance:
- Fraud by the owners
- Failure to follow formal corporate rules
- Inadequate capitalization of the company
- Use of company assets as private assets.
Answer: The correct answer is "D. A shareholder's S corporation stock basis will increase when the shareholder acts as guarantor on a corporate indebtedness.".
Explanation: The statement D. A shareholder's S corporation stock basis will increase when the shareholder acts as guarantor on a corporate indebtedness. is <u>FALSE</u> because a shareholder's S corporation stock basis does not increase when the shareholder acts as guarantor on a corporate indebtedness.
