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Miley's business of gift items is earning her good profits. She is the sole proprietor of the business and wishes to expand it. However, she

does not want to include too many stockholders in the business. Which type of business structure might be ideal for Miley?
A. corporation
B. sole proprietorship
C. Ccorporation
D. S corporation

1 Answer

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Answer: Option B

A sole proprietorship might be the ideal business structure for Miley if she does not want to include too many stakeholders in her business. As a sole proprietor, Miley is the only business owner, meaning she has complete control over the operations and does not need to share the profits with other shareholders. This type of business structure is relatively easy to set up, has low start-up costs, and has fewer paperwork and legal requirements than other business structures.

On the other hand, C and S corporations require shareholders and have more complex legal and tax requirements. C corporations are taxed separately from their owners, while S corporations allow income and losses to pass through to the shareholders' tax returns. Both types of corporations have stricter requirements for record-keeping, filing taxes, and holding meetings, among other things.

Therefore, if Miley wants to maintain complete control over her business and avoid the complexities of setting up and running a corporation, she might prefer to stick with a sole proprietorship.

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