1. Assume that a firm is developing its long-run financial plan. What period should this plan cover-one month, six months, one year, three years, five years, or some other period? Justify your answer.
2. What does double taxation of corporate income mean?
3. If you were starting a business, what tax considerations might cause you to prefer to set it up as a proprietorship or a partnership rather than as a corporation? Would you consider the average or the marginal tax rate more relevant?