Jerry has $50 to spend at the electronics store. he sees two movies that he wants that are $15 each. there is also a video game that he wants that costs $45. which statement best describes the opportunity costs and benefits of buying the movies? select the best answer from the choices provided.
the opportunity cost is $30; the benefit is the hours of entertainment from the movies.
the opportunity cost is that he cannot afford the game; the benefit is that he saved $45.
the opportunity cost is $30; the benefit is that he still has $20.
the opportunity cost is that he cannot afford the game; the benefit is that he has the two movies.

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

Cash flow is often a problem for small businesses. how can an entrepreneur increase cash flow? a) locate lower-priced suppliers. b) forego sending in estimated tax payments to the irs c) shorten the terms on a bank loan to pay it off more quickly d) sell more low-margin items.

In a chapter 7 bankruptcy, a debtor: