. Which of the following statements is CORRECT? a. It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required. b. Corporations face fewer regulations than sole proprietorships. c. One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level. d. One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership.

Answers

Answer 1

Answer:

The correct answer is the option D: One advantage of forming a corporation is that equity investors are usually exposed to less liability than in regular partnership.

Explanation:

On the one hand, a sole propietorship is a type of enterprise that characterizes itself because of the fact of having the condition to consider both the legal entity and the owner of it as a same person, meaning that there is no distinction between them and therefore that the owner of the business has unlimited liability.

On the other hand, a corporation is another type of enterprise in which there is a distinction between the people who own the company and the organization itself as a legal entity and therefore that one advantage of this type of business is that the owners have limited liability when it comes to terms of facing the debts of the company.


Related Questions

The controller compares the bank deposit to the journal entry for cash receipts to ensure that the bank deposit matches the accounting records for the _______ account.

Answers

Answer:

Cash account

Explanation:

The controller compares the bank deposit to the journal entry for cash receipts to ensure that the bank deposit matches the accounting records for the Cash account.

The comparisms of the bank deposit to the journal by the controller who is the organization's lead accountant

in banking or financial institution is necessary so that accounting record are in order, by making sure that bank deposits are placed into a deposit account, so that it can matches accounting record for cash account. It should be noted that cash account are controlled by Federal Reserve's Regulation.

Phillippe invested $1,000 ten years ago and expected to have $1,800 today. He has not added or withdrawn any money from this account since his initial investment. All interest was reinvested in the account. As it turns out, he only has $1,680 in his account today. Which one of the following must be true?a) He earned simple interest rather than compound interest.b) He did not earn any interest on interest as he expected.c) He ignored the Rule of 72 which caused his account to decrease in value.d) He earned a lower interest rate than he expected.e) The future value interest factor turned out to be higher than he expected.

Answers

Answer:

d) He earned a lower interest rate than he expected

Explanation:

Data provided in the question

Invested amount ten years ago = $1,000

Expected amount = $1,800

Today amount = $1,680

Based on the above information,

Since the bond is based on the floating rate not the fixed rate that results in the value of the investment to $1,800

And, the today amount is $1,680 i.e. less than the expected amount so the internet rate should be less as compared with the expected rate

hence, correct option is d.

Marcus prepared for his upcoming interview by wearing a navy suit, dress shoes, a white shirt, and a patterned tie. He also practiced answering possible interview questions. Marcus was ___________.

Answers

Options :

A. Prepared: made ready in advance

B. Fortified: strengthened and secured

C. Qualified: having the required skills

D. Trained: having acquired necessary knowledge or skill

Answer: A. Prepared: made ready in advance

Explanation: Preparedness may be explained as a measure of an individual's state of readiness with respect to an imminent assignment, action or chore. Being prepared could involve physical readiness such as in the case of Marcus donned the attire he intends to use for his upcoming interview before the interview date, this will help him access is physical state in the outfit prior to the main event. Also, Marcus exhibited mental Preparedness by practicing possible interview questions in other to boost his knowledge and mental state. This shows that Marcus was fully ready before the main interview.

All of the following are excellent reasons for a municipality to subsidize stadium/arena construction except A. improved quality of life and the possibility for urban renewal. B. economic growth leading to a return on investment. C. public relations boost of being labeled a "major league city." D. civic pride and community spirit.

Answers

Answer:

B. economic growth leading to a return on investment.

Explanation:

All of the following are excellent reasons for a municipality to subsidize stadium/arena construction except economic growth leading to a return on investment. Thus the correct option is B.

What is economic growth ?

The economic growth of any country is determined by the ratio of production and consumption that takes place within a year and evaluates the flow of funds in the market by analyzing the purchasing parity of an individual.

The excellent reasons for a municipality to subsidize stadium/arena construction are improved quality of life and the possibility for urban renewal which provides better assistance and job opportunities.

Subsidize stadium/arena construction helps in the improvement in public relations and appears as a "major league city" which helps in growth and development as well as community spirit.

Therefore, option B's economic growth leading to a return on investment is appropriate.

Learn more about the Economy, here:

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Brick Co. has 170,000 shares of common stock outstanding at January 1, Year 5. On May 1, Year 5, it issued 30,000 additional shares of common stock. Outstanding all year were 12,000 shares of convertible cumulative preferred stock. Each share of the convertible preferred stock, which was dilutive in Year 5, is convertible into one share of Brick's common stock. What is the number of shares that Brick should use to calculate Year 5 diluted earnings per share

Answers

Answer:

the number of shares that Brick should use to calculate Year 5 diluted earnings per share is 202,000 shares.

Explanation:

Diluted Earnings per share takes into account the potential voting rights in the calculation of the Weighted Average Number of Common Stocks Outstanding.

Weighted Average Number of Common Stocks Outstanding Calculation :

Outstanding at beginning of the Year                                         170,000

Issued May 1 : 30,000 × 8/12                                                         20,000

Convertible cumulative preferred stock                                        12,000

Weighted Average Number of Common Stocks Outstanding 202,000

Regulation SHO:________. I. requires every sell order to be marked either ""long sale"" or ""short sale"" II. requires every buy order to be marked either ""long purchase"" or ""short purchase"" III. places limits on ""naked"" short sales of equity securities IV. places limits on ""covered"" short sales of equity securities"

Answers

Answer:

I and III.

Explanation:

Regulation SHO is a securities and exchange commission (SEC) rule that is used to regulate "short sale" trading strategies. The main purpose of the "regulation sho" is to prevent unethical and fraudulent behaviors among brokers, investors and traders.

Regulation SHO;

1. Requires every sell order to be marked either "long sale" or "short sale" because it involves the application of a standard uniform rule to all equity securities short sales whether traded over the counter (OTC) or exchange listed.

2. Places limits on "naked" short sales of equity securities such as selling short and not delivering the sales to a short seller on settlement.

Hence, if a sales is short, it is assumed that it can be borrowed and delivered to a short seller by settlement on a specified date.

Additionally, short selling can be defined as an act of borrowing and sales of securities with the expectation that it will decrease in value and then returned to the lender.

Jack and Jill are the only two residents in a neighborhood, and they would like to hire a security guard. The value of a security guard is $50 per month to Jack and $90 per month to Jill. Irrespective of who pays the guard, the guard will protect the entire neighborhood and charge $120 per month for the service.Suppose Jack earns $4,000 per month and Jill earns $8,000 per month. a. With a proportional tax of 1 percent on income, how much would Jack and Jill pay, and would it be enough to pay for the security guard?

Answers

Answer:

Yes their combined contribution of $120 is sufficient to pay the security guard

Explanation:

This is a form of non-rival service that does not get reduced by consumption by one of the parties. The security guard protects the entire neighbourhood.

Also it is a non-excludable service. If one party does not pay he will still enjoy the service.

Based on their income information and the fact that they are taxed 1%

Jack will pay 0.01 * 4,000 = $40

Jill will pay 0.01 * 8,000 = $80

The total sum is 40 + 80 = $120

As the security guard requires $120 to do the job, their contribution is sufficient.

However the value to Jack is $50 and he pays $40 so he has an excess value of $10

Jill gets a value of $90 but pays $80, so she gets an excess value of $10

Transformational leaders: Group of answer choices Follow what top management sets as its goals for the organization Connect the follower's behavior to the collective identity of the organization Causes change in individuals and social systems Empower employees to act based on their ethical goals and values

Answers

Answer:

Causes change in individuals and social systems

Explanation:

Transformational leaders causes change in individuals and social systems

Enter the following transactions in the cash book of Sudhir & sons

Answers

j jl Ulrich upvpici jl ljc

Bake Treats is a confectionery that makes cakes for special occasions and delivers them. They use gourmet ingredients while baking and deliver customized treats. In fact, they only start baking once they receive an official request from a customer. It is evident that Bake Treats has adopted a(n) _____ .

Answers

Answer: make-to-order operation

Explanation:

From the question, we are informed that Bake Treats is a confectionery that makes cakes for special occasions and delivers them and that they use gourmet ingredients while baking and deliver customized treats.

We are further told that they only start baking once they receive an official request from a customer. This shows that they are using the make-to-order operation.

A local restaurant offers an "all you can eat" Sunday brunch for $12. Susan eats four servings, but leaves half of a fifth helping uneaten. Why

Answers

Probably because she wasn’t hungry. What are the options because it shouldn’t be anything to due with price!

Janine is 25 and has a good job at a biotechnology company. She currently has $5,000 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 8 percent, and she plans to leave it untouched until she retires at age 65.
Janine estimates that she will need $875,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $20,000 a year (she expects that Social Security will pay her an additional $15,000 a year).
How much will Janine's IRA be worth when she needs to start withdrawing money from it when she retires?

Answers

Answer:

$108,622.60

Explanation:

Calculation for the amount Janine's IRA will worth when she needs to start withdrawing money from it when she retires

Based on the information given we were told that She has the amount of $5,000 in an IRA, which is a vital part of her retirement nest egg in which She has well believes that her IRA will increase at an annual rate of 8%.

Secondly we were told that she is 25 age and plan to retire at the age of 65 which means that the number of years until her retirement will be 40 years(65 years-25 years)

Now let calculate how much she will be worth using this formula

Amount worth= Present value in IRA*(Annual rate increase)^ Numbers of years until retirement

Let plug in the formula

Amount worth=5,000 *(1 + 0.08)^40 =

Amount worth=5,000*(1.08)^40

Amount worth =5,000*21.72452

Amount worth= $108,622.60

Therefore Janine's IRA will be worth $108,622.60 when she needs to start withdrawing money from it when she retires.

Economic profit in the long run is: Group of answer choices possible for both a pure monopoly and a pure competitor. possible for a pure monopoly but not for a pure competitor. impossible for both a pure monopolist and a pure competitor. only possible when barriers to entry are nonexistent.

Answers

Answer:

possible for a pure monopoly but not for a pure competitor

Explanation:

The economic profits are the profits in which the firm could be earned by the market power

As we know that in the perfect competition there is a freedom for entry and exit to the markets and also in this no market power due to which its profits are zero

Therefore it should be possible for the pure monopoly, not the pure competitor

Hence, option b is correct

imothy, a laboratory manager at a multinational photography company, manages a team of seven designers. All of them report to him, and he has the power to command them and assign duties to them. In this scenario, Timothy most likely has_____.

Answers

Answer:

line authority

Explanation:

Line authority can be defined authority or power given to an individual in a supervisory role to manage and mandate his subordinates to help an organization fulfil its objectives.

From the above definition, it is seen that Timothy has a group of 7 persons under him which means he is in a supervisory role or position within the company. As the supervisor, Timothy assigns duties to the members of the group after which he reports to a higher authority.

Cheers.

In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hitech stock for $57 per share after 1 year. If you require a rate of return of 16 percent on Hitech stock, how much would you be willing to pay now for a share of the stock?

Answers

Answer:

Price to be paid now = $52.89

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The stock would be held for just a period, hence we would use the single period return model. This is given as follows:

Price now  = D/(1+r) + P×(1+r)

Dividend , r - rate of return, P -year-end price of stock

Dividend = 4.35, r-16%, P- 57

Price = 4.35/(1.16)  + 57/(1.16)= $52.89

Price to be paid now = $52.89

If a perfectly competitive firm finds that the price exceeds its ATC​, then the firm A. will lower its price to increase its economic profit. B. is earning zero economic profit. C. will raise its price to increase its economic profit. D. is earning an economic profit. E. is incurring an economic loss.

Answers

Answer:

D. is earning an economic profit

Explanation:

When the price exceeds its average total cost (ATC) so the perfectivity competitive firm would be earned the positive economic profit in the short run

As we know that

Profit = Total revenue - Total cost  

= PQ - ATC ×Q

= Q × (P - ATC)

Now if the price is more than the ATC so it would lead to positive profits

Hence, d option is correct

The market inverse demand curve is P = 90 – Q, where Q is the total market output consisting of Firm 1's output, q1, and Firm 2's output, q2. Both firms have a constant marginal cost of $10. If Firm 1 selects its output level first, how much output does each firm produce?

Answers

Answer:

Firm 1 produces 40 and Firm 2 produce 20

Explanation:

Given that:

The market inverse demand curve is P = 90 – Q

Total TC = 10q + 10

and θ = q₁ + q₂

Both firms have a constant marginal cost

Then :

TC₁ = 10q₁ + 10

TC₂ = 10q₂ + 10

If Firm 1 selects its output level first, then it acts as a leader and firm 2 acts as a follower.

So, let have :

Ф₂  = pq₂  - TC₂

Ф₂  =  (90 - θ)q₂ - 10q₂ - 10

Ф₂  = 90q₂ - (q₁ + q₂)q₂  - 10q₂ - 10

Ф₂  =  80q₂  - q₁q₂ - q₂² - 10

[tex]\dfrac{d \phi_2}{dq_2} = 80 - q_1 - 2q_2[/tex]

80 - q₁ - 2q₂ = 0

80 - q₁ = 2q₂

2q₂= 80 - q₁

[tex]q_2 = \dfrac{80 - q_1}{2}[/tex]

[tex]q_2 = 40 - \dfrac{ q_1}{2}[/tex]

Ф₁ = pq₁- TC₁

Ф₁ = ( 90 - θ )q₁ - 10q₁ - 10

Ф₁  = 90q₁ - (q₁ + q₂)q₁  - 10q₁ - 10

Ф₁  = 80q₁ - q₁² - q₁q₂ - 10

Replace the value of q₂ in the above equation ,

[tex]\phi _1 = 80q_1 - q_1^2 - q_1 (40 - \dfrac{q_1}{2}) - 10[/tex]

[tex]\phi _1 = 80q_1 - q_1^2 - 40q_1 - \dfrac{q_1^2}{2} - 10[/tex]

[tex]\phi _1 = 40q_1 - \dfrac{q_1^2}{2} - 10[/tex]

[tex]\dfrac{ d \phi_1}{ d q_1} = 40 - \dfrac{2q}{2} - 0[/tex]

[tex]\dfrac{ d \phi_1}{ d q_1} = 40 - q_1[/tex]

40 - q₁= 0

q₁ = 40

Recall that

[tex]q_2 = 40 - \dfrac{ q_1}{2}[/tex]

[tex]q_2 = 40 - \dfrac{ 40}{2}[/tex]

[tex]q_2 = \dfrac{ 80-40}{2}[/tex]

[tex]q_2 = \dfrac{ 40}{2}[/tex]

q₂ = 20

Firm 1 produces 40 and Firm 2 produce 20

If the Central Bank of Macroland puts an additional 1,000 dollars of currency into the economy, the public deposits all currency into the banking system, and banks have a desired reserve/deposit ratio of 0.10, then the banks will eventually make new loans totaling ______ and the money supply will increase by _______.

a. 9,000; 10,000
b. 9,000; 9,000
c. 10,000; 9,000
d. 10,000; 10,000

Answers

Answer:

a. 9,000; 10,000

Explanation:

The computation is shown below:

The money multiplier is

= 1 ÷ 0.10

= 10

Now If $1,000 are deposited in banks and the expected reserve ratio is 0.10 ration so the lending amount is $900.

And now if we considered the money multiplier, so it would be increased by

= $900 × $10

= $9,000

And, the increase in money supply is

= $9,000 + $1,000

= $10,000

Hence, the correct option is a.

The ____________ of a business firm is the system that details lines of authority, responsibility, and position, similar to the structure on organization charts.

Answers

Answer: formal organization

Explanation:

In a formal organization setting, there are laid out rules, practices, functions and goals, which are based on the power one possesses in the organization and also on the division of labor.

It is constructed in a way to show the responsibility and position of every person in an organization.

In the context of the BCG matrix, which of the following businesses would be classified as a dog? a. Bigs Steel, a metal manufacturer that has negligible market share in a slow-growing industry b. Ultimo Phone, a smartphone manufacturer that is the market leader in a rapidly growing industry c. Cleep Sweep, a detergent company that has been earning steady profits in a slow-growing industry d. Brain Cash, a finance company that is struggling for market share in a fast-growing industry

Answers

Answer:

A. Big steel, a metal manufacturer that has negligible market share in a slow-growing industry

Explanation:

LEAP Communications Technology has subsidiaries in each country in which it does business. As the parent company, LEAP runs its research and development department from its home country. As a result, each foreign subsidiary remains dependent on it for new products, processes, and ideas. This illustrates the _____ model for global strategy.

Answers

Answer:

International.

Explanation:

This can be explained to be the strategies and plans that a business has put in place to mark bedrocks that his business is strong to ply its trades across the borders of its home country.

This is seen to occur in past decades, even smaller companies have been able to cross national borders and do business abroad. In as much as there have been conditions that have been given to companies operating in multiple nations across the globe which ranges from multinationals, global businesses through transnational companies, international firms too. This is why LEAP communications in the context above as the parent company, LEAP runs its research and development department from its home country.

Sanchez Inc. reported the following on the company's cash flow statement for 20Y7: Net cash flow from operating activities $500,000 Net cash flow used for investing activities (200,000) Net cash flow used for financing activities 150,000 Thirty percent of the cash flow used for investing activities was used to purchase property, plant, and equipment. What is the free cash flow for 20Y7?

Answers

Answer: $440,000

Explanation:

From the question, we are informed that the net cash flow from operating activities is $500,000, the net cash flow used for investing activities is (200,000) and that the net cash flow used for financing activities 150,000. We are further told that thirty percent of the cash flow used for investing activities was used to purchase property, plant, and equipment.

The free cash flow for 20Y7 will be:

= $500,000 - ($200,000 × 30%)

= $500,000 - ($200,000 × 0.3)

= $500,000 - $60,000

= $440,000

There are many restaurants in the city of Charleston, South Carolina, each one offering food and services that differ from those of its competitors. There is also relatively free entry of sellers into the market, and each seller serves a very small fraction of the total number of meals served each day. The restaurant industry in Charleston is best categorized as:

Answers

Answer: monopolistically competitve

Explanation:

Monopolistic competition is an industry whereby there are many firms that offer identical products or services but it should be noted that they are not perfect substitutes.

There is a low barriers to entry and exit and other competitors aren't directly affect by the decision of another producer. Based on the above scenario, the restaurant industry in Charleston is best categorized as monopostically competitive.

For years, the world had used the country of Votnam as a place to assemble goods because of the country's availability of cheap labor. To shift its manufacturing base from simple assembly to full-fledged manufacture of components and finished goods, Votnam introduced a policy that 35 percent of the value of a product must be produced locally. This is an example of a(n) Group of answer choices

Answers

Answer:

Local content requirement.

Explanation:

In this scenario, for years, the world had used the country of Votnam as a place to assemble goods because of the country's availability of cheap labor. To shift its manufacturing base from simple assembly to full-fledged manufacture of components and finished goods, Votnam introduced a policy that 35 percent of the value of a product must be produced locally. This is an example of a local content requirement.

A local content requirement can be defined as a measure or strategic policy put in a place by a government to ensure that there's a balance in the level of production through the use of domestically sourced raw materials. It is focused on promoting sustainable economic development in a particular country through the application of various raw materials acquired locally or within the country.

Generally, local content requirement helps to promote and enhance export rather than importation.

The absolute value of the price elasticity of demand for gasoline in the long run has been estimated to be 1.5. If an extended war in the Middle East caused the price of oil (from which gasoline is made) to increase and remain high for a decade, how would that affect total expenditures on gasoline in the long run, all other things equal? (Hint: Consider the change in gasoline prices.)

Answers

Answer:

The demand for gasoline is elastic

As a result of the extended war which raises the price of oil, the price of gasoline would rise as a result. the rise in price would lead to a greater change in the quantity demanded. In the long run, consumers would have enough time to search for suitable substitutes so total expenditures on gasoline would fall more in the long run

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Design of experiments is a technique that helps identify which variables have the most influence on the overall outcome of a process. Understanding which variables affect outcome is a very important part of quality planning.

Answers

Answer:

True.

Explanation:

Design of experiments can be defined as a systematic approach used to determine the relationship between factors (variables) affecting a process and its overall outcome or end result.

Generally, design of experiments involves the process of planning, conducting, evaluating and interpretation of controlled data to yield valid and objective outcomes.

Hence, design of experiments is a technique that helps identify which variables have the most influence on the overall outcome of a process.

This ultimately implies that, in order to achieve greater success and optimum level of output in an organization; design of experiments can be used to find cause-and-effect relationships of a process.

In conclusion, understanding which variables affect outcome is a very important part of quality planning.

Assume that divisional income from operations amounts to $215,000 and top management has established 15% as the minimum rate of return on divisional assets totaling $1,000,000. The residual income for the division is

Answers

Answer:

$65,000

Explanation:

The computation of the residual income is shown below;

Residual income = Operating income - target income

where,  

Operating income is given in the question  

And, the target income could be calculated by

= Average invested assets × required rate of return

= $1000,000 × 15%

= $150,000

So, the residual income is

= $215,000 - $150,000

= $65,000

Record and analyze installment notes (LO9-2)
[The following information applies to the questions displayed below.]
On January 1, 2021, Stoops Entertainment purchases a building for $420,000, paying $100,000 down and borrowing the remaining $320,000, signing a 7%, 20-year mortgage. Installment payments of $2,480.96 are due at the end of each month, with the first payment due on January 31, 2021. Problem 9-1B Part 1 Required: 1. Record the purchase of the building on January 1, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Required information Journal entry worksheet Record the purchase of the building. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021.

Answers

Answer:

January 1, 2021, building purchased

Dr Building 420,000

    Cr Cash 100,000

    Cr Notes payable 320,000

Explanation:

The building account (asset) must be recorded at the purchase cost. The mortgage is considered a note payable (long term liability), while the cash account (asset) decreases, therefore, it must be credited.

what influences the costumer when she or he is deciding whether to buy a product

Answers

Answer:

Price

Explanation:

While there could be more than one factor that influences a customer's decision to buy a product, the underlining factor that has the most weight with regards to decision making is the price.

If a customer wants to buy a jacket that costs $4.99 and sees another store selling a jacket of the same quality or even less quality at $3.50, he is likely to buy the cheaper one in order to save some extra cash. It is linked with the purchasing power of the customer.

Assume that three identical units are purchased separately on the following three dates and at the respective costs:________. June 1 at $10 June 2 at $15 July 4 at $20 The company sells two units during the period. Conclude which inventory items are sold first and which unit remains in ending inventory if the company is using the LIFO perpetual cost flow assumption.

Answers

Answer:

Under last in, first out (LIFO) inventory method, the units purchased last are used to determine the cost of goods sold. This doesn't mean that exactly the last units purchased will be sold first, it is just used as an accounting tool.

In this case, the last unit purchased costed $20, and the immediately previous one costed $15. Under LIFO, these 2 units would have been sold (COGS = $35), and the ending inventory = $10 (the price of the "oldest" unit).

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