Maggie runs a cleaning business, and her 16-year-old daughter would like to work for her on the weekends. Which of the following is a benefit of hiring a younger family member? Question 14 options: If the business is unincorporated, the child's earnings are not subject to FICA or Social Security taxes. There is no limit on the number of hours that a family member younger than age 18 can work. Maggie can pay her daughter a high hourly rate to shield the business's income from taxes. There are no benefits.

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.