Answer:
lows immediate reconciliation, improves the integrity of data and generates trust because it allows participants to provide increased transparency to stakeholders and gain control of their own operations in a digital environment
Any help 75 points
Quantity supplied varies positively (directly) with price, other things constant, as price rises, the quantity supplied rises; as price falls, the quantity supplied decreases
Answer:
law of supply
Explanation:
this is the law of supply
Which business unit could have its shares quoted on the stock exchange?
Answer:
To promote trading of its stock, a corporation may choose to list its shares on a stock exchange. Apple, Walmart and Ford are high-profile publicly traded corporations, but smaller companies also trade on the major exchanges.
4. Social responsibility is an area of business with issues that
A. are easy to resolve.
B. change constantly in response to society's demands.
C. stay constant due to consistent societal demands.
D. change occasionally in response to society's demands.
Social responsibility is an area of business that changes occasionally in response to society's demands. So the correct option is D.
How does the business determine society's demands?Businesses must decide what to produce to satisfy the needs and wants of the society or consumer. Business determined the taste, preference of the consumer, and level of income, fashionable trends also help.
The business firm also contributes to the growth of society by bringing innovation in the market, to provide better facilities for the consumer.
Therefore the correct option is D.
Learn more about Society's demand here:
brainly.com/question/4192569
Tori Inc. has some material that originally cost $68,800. The material has a scrap value of $30,300 as is, but if reworked at a cost of $1,500, it could be sold for $31,600. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as scrap? (CIMA adapted)
a. $(71,100)
b. $(1,100)
c. $29,800
d. $(40,200)
Answer:
($200)
Explanation:
Calculation to determine What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as scrap
Sales value of reworked material: $31,600
Less: Cost to rework material: $1,500
Net Sales Value: $30,100
Current Scrap Value: $30,300
Net Disadvantage: ($200)
($30,100-$30,300)
Therefore What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as scrap is ($200)
On January 7, stockholders invest $45,000 in JumpStart in exchange for common stock. Provide the journal entry for this transaction.
Answer:
Dr Cash $45,000
Cr Common stock $45,000
Explanation:
Preparation of the journal entry
Based on the information given the appropriate Journal entry On January 7 since the stockholders invest the amount of$45,000 in JumpStart in exchange for common stock will be:
January 7
Dr Cash $45,000
Cr Common stock $45,000
(To record investment in JumpStart)
Perit Industries has $110,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:
Project A Project B
Cost of equipment required $110,000 $0
Working capital investment required $0 $110,000
Annual cash inflows $20,000 $68,000
Salvage value of
equipment in six years $8,600 $0
Life of the project 6 years 6 years
The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 16%.
Required:
1. Compute the net present value of Project A.
2. Compute the net present value of Project B.
3. Which investment alternative (if either) would you recommend that the company accept?
Answer:
$-32,775.48
$185,710.69
Project B
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Project A
Cash flow in year 0 = -$110,000
Cash flow in year 1 - 5 = $20,000
Cash flow in year 6 = $20,000 + $8,600 = 28,600
I = 16%
NPV = $-32775.48
Project B
Cash flow in year 0 = -$110,000
Cash flow in year 1 - 5 = $68,000
Cash flow in year 6 = $68,000 + $110,000 = $178,000
I = 16%
NPV = $185,710.69
Project B should be chosen because its NPV is positive
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Swifty Corporation took a physical inventory on December 31 and determined that goods costing $215,000 were on hand. Not included in the physical count were $27,000 of goods purchased from Marigold Corp., FOB, shipping point, and $20,000 of goods sold to Concord Corporation for $34,000, FOB destination. Both the Marigold purchase and the Concord sale were in transit at year-end.
Required:
What amount should Swifty report as its December 31 inventory?
Answer:
$262,000
Explanation:
Ending inventory = Goods on Hand + Cost Goods purchased from Marigold Corp + Cost of goods sold to Marigold Corp.
Ending inventory = $215,000 + $27,000 + $20,000
Ending inventory = $262,000
So, the amount that should Swifty report as its December 31 inventory is $262,000.
Chad, who owns the only coffee shop in Rivercity, learns that Jose is about to open a competing coffee shop in the same small town, just a few blocks from Chad's. Chad offers Jose $10,000 in return for Jose's promise not to open a coffee shop in the Rivercity area for six months. Jose accepts the $10,000 but goes ahead with his plans, even though he had agreed not to do so. When Jose opens his coffee shop for business, Chad sues to enjoin Jose's continued operation or to recover the $10,000
Required:
Can Chad sues Jose?
Answer:
Rivercity Coffee Shop
Chad cannot sue Jose. The $10,000 is paid to Jose is a bribe. Since a bribe is not legal, it cannot form the basis for an enforceable contract.
Moreover, the offer by Chad is an antitrust and anti-competition consideration that is legally frowned upon. illegal contract
Explanation:
For a contract to be enforceable, it cannot be illegal. A bribe is illegal. The basis for the contract is illegal. Therefore, Chad cannot sue Jose. Since Jose decided to breach the contract, neither Chad nor Jose is entitled to any compensation. Jose cannot be held liable for non-performance.
The personality and unique character of a group is best known as its ________ and includes the group's assumptions, values, beliefs, norms, ideologies, and the structure of its social, political, economic, and religious institutions.
A) group potency
B) group entitativity
C) group identity
D) culture
Answer:
d as its not any of the others and culture makes most sense
Explanation:
A company wants to generate a forecast for unit demand for year 2018 using exponential smoothing. The actual demand in year 2017 was 120. The forecast demand in year 2017 was 110. Using this data and a smoothing constant alpha of 0.1, which of the following is the resulting year 2018 forecast value?
a. 110
b. 114
c. 120
d. 111
e. 100
Answer:
d. 111
Explanation:
Calculation to determine which of the following is the resulting year 2018 forecast value
Using this formula
2018 Forecast value = Ft= Ft - 1+ (At - 1- Ft - 1)
Let plug in the formula
2018 Forecast value = 110 + 0.1 (120 - 110)
2018 Forecast value=110+0.1(10)
2018 Forecast value=110+1
2018 Forecast value= 111
Therefore the resulting year 2018 forecast value
will be 111
If the dollar contribution margin per unit is increased by 10%, total fixed expenses is decreased by 20%, and all other factors remain the same, net operating income will:
Answer:
Operating profit increases by $11,000
Explanation:
Missing word "A company has provided the following data: Sales 3,000 units Sales Price $70 per unit Variable Cost $50 per unit Fixed Cost $25,000"
Particulars Status quo
Sales $210,000 (3000*70)
Less: Variable cost $150,000 (3000*50)
Contribution margin $60,000
Less: Fixed costs $25,000
Operating profit $35,000
Alternate profit = Alternate contribution margin - Alternate fixed cost
Alternate profit = [(Status quo contribution margin + %change) − (Alternate fixed cost-%change)]
Alternate profit = ($60,000+10%)−($25,000−20%)
Alternate profit = $46,000
Change in profit = Alternate profit - Status quo profit
Change in profit = $46,000 - $35,000
Change in profit = $11,000
So, the operating profit increases by $11,000
Erin, a shareholder of Finance Inc., demands the right to inspect corporate records to determine whether management has engaged in self-dealing that impacts the company. The firm refuses the request. On Erin’s challenge, a court is most likely to hold that her request constitutes:________
a. harassment.
b. unreasonable access to trade secrets and other confidential information.
c. a proper purpose.
d. potential abuse.
Answer:
c. a proper purpose.
Explanation:
Proper purpose is an action taken by a shareholder or member of a corporation that is reasonable related to his position or rights.
With the proper purpose rule there is a constraint on a director's autonomy within an organisation and it provides checks to excesses by the management team.
Erin demands the right to inspect corporate records to determine whether management has engaged in self-dealing that impacts the company.
As a shareholder she is enforcing proper right and the court will uphold this.
Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $16,000 estimated residual value. (Do not round intermediate calculations.)What should be the book value of (a) the land and (b) the building at the end of year 2
Answer:
Missing word "Bridge City Consulting bought a building and the land on which it is located for $120,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use."
Total Cost of Land and Building (100%) = $120,000
Cost of Land (70%) = $84,000
Cost of Building (30%) = $36,000
Cost of Building Renovations = $10,000
Total Cost of Building = $36,000 + $10,000
Total Cost of Building = $46,000
1. Annual Depreciation(Year End Depreciation) = (Cost of Building - Residual Value)/ Number of Year
Annual Depreciation = $46,000 - $16,000 / 10
Annual Depreciation = $30,000 / 10
Annual Depreciation = $3,000
2. Book Value of Land at the end of two years = $84,000
Book Value of Building at the end of two years = $46,000 - ($3,000*2 year) = $46,000 - $6,000 = $40,000
Hence, Book Value of Land and Building at the end of two year is = $84,000 + $40,000 = $124,000
g A wife (30 years old) spends five hours a week sending bills to her husband s customers. She is not paid for her work. She spends the rest of her time as a full-time homemaker. She would be classified as
Answer:
Housewife
Explanation:
In the given case, the wife is giving her time and energy to her husbands business and is not getting paid, thus, she has no monetary or legal relationship with the business. Also, she is a full time homemaker on the side.
Hence she will be classified as a full time homemaker or housewife because she is not getting any monetary benefit for the work she is performing.
On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $91,700,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $6,300,000. Starfruit’s book value was $13,000,000 at the date of acquisition. Starfruit’s assets and liabilities were reported on its books at values approximating fair value, except its plant and equipment (10-year life, straight-line) was overvalued by $25,000,000. Starfruit Company had previously unreported intangible assets, with a market value of $40,000,000 and 5-year life, straight-line, which were capitalized following GAAP.Additional informationPomegranate uses the complete equity method to account for its investment in Starfruit on its own books. Goodwill recognized in this acquisition was impaired by a total of $2,000,000 in 2018 and 2019, and by $500,000 in 2020. It is now December 31, 2020, the accounting year-end. Here is Starfruit Company’s trial balance at December 31, 2020: Dr (Cr)Current assets $28,200,000Plant & equipment, net 188,000,000Intangibles 2,000,000Liabilities (180,000,000)Capital stock (1,000,000)Retained earnings, January 1 (29,500,000)Acumulated other comprehensive income, January 1 (500,000)Dividends 400,000Sales revenue (24,000,000)Cost of goods sold 10,000,000Operating expenses 6,500,000Other comprehensive income (100,000)On the 2020 consolidated income statement, the noncontrolling interest in net income of Starfruit is:________.a. $150,000b. $175,000c. $200,000d. $750,000
.......................................
Answer: C: 1750000
Explanation:
Before communicating, the sender must encode the idea that he or she wants to communicate, or put it into some form or code that he or she hopes the other person can understand.
a. True
b. False
Answer:
a. True
Explanation:
The communication process can be regarded as process of passing information from sender to receiver,
It consist of four key components which are;
✓ encoding
✓medium of transmission
✓decoding
✓ feedback.
Decoding can be regarded as reverse process of listening to words as well as thinking about those words, follow by transformation of those words into mental images
Encoding can be regarded as
process involving taking an idea or mental image, then associate that idea or image with words, follow by speaking those words so that message
can be conveyed. communication can not be complete until the receiver confirms the sent message by the sender , by receiving and understood it.It should be noted that Before communicating, the sender must encode the idea that he or she wants to communicate, or put it into some form or code that he or she hopes the other person can understand.
Doug Allen has decided to go into the insect extermination business and to operate as Doug's Extermination Service. The following transactions were completed during the first month of operations, May, 20--.
1. Doug invested $35,000 cash in the business.
2. Purchased extermination equipment for $17,000 in cash.
3. Paid $700 rent for garage and office quarters.
4. Purchased chemicals (expense) for $1,100 from Low Glow Chem Co. on account.
5. Received $1,600 revenue for extermination service.
6. Paid telephone bill, $120
7. Paid assistant's salary, $700.
8. Earned $980 revenue for extermination service, on account.
9. Paid electric bill, $230.
10. Paid for truck repairs (expense), $145.
11. Paid $600 to Low Glow Chem Co., on account.
12. Paid $131 for gas and oil for truck (expense).
13. Received $1,400 revenue for extermination service.
14. Received $500 for services previously earned on account in transaction (8).
15. Paid assistant's salary, $900.
Required:
Write the transactions in the T accounts, then write the total of each column. If an account has entries on both sides, determine the balance and enter it on the side with the larger total.
Answer:
Doug's Extermination Service
T-accounts:
Cash
Account Titles Debit Credit
Common stock $35,000
Extermination equipment $17,000
Rent 700
Extermination Revenue 1,600
Utilities Expense 120
Salary Expense 700
Utilities Expense 230
Truck Expenses 145
Accounts Payable (Low Glow) 600
Truck Expense 131
Extermination service 1,400
Accounts Receivable 500
Salary Expense 900
Balance $17,974
Common Stock
Account Titles Debit Credit
Cash $35,000
Extermination equipment
Account Titles Debit Credit
Cash $17,000
Rent Expense
Account Titles Debit Credit
Cash $700
Supplies Expense
Account Titles Debit Credit
Accounts payable $1,100
Accounts Payable (Low Glow Chem Co.)
Account Titles Debit Credit
Supplies Expense $1,100
Cash $600
Balance $500
Extermination Service Revenue
Account Titles Debit Credit
Cash $1,600
Accounts Receivable 980
Cash 1,400
Balance $3,980
Utilities Expense
Account Titles Debit Credit
Cash $120
Cash 230
Balance $350
Salary Expense
Account Titles Debit Credit
Cash $700
Cash 900
Balance $1,600
Accounts Receivable
Account Titles Debit Credit
Extermination Service Revenue $980
Cash $500
Balance $480
Truck Expenses
Account Titles Debit Credit
Cash $145
Cash 131
Balance $276
Explanation:
a) Data and Analysis:
1. Cash $35,000 Common Stock $35,000
2. Extermination equipment $17,000 Cash $17,000
3. Rent $700 Cash $700
4. Supplies Expense $1,100 Accounts Payable (Low Glow Chem Co.) $1,100
5. Cash $1,600 Extermination Service Revenue $1,600
6. Utilities Expense $120 Cash $120
7. Salary Expense $700 Cash $700
8. Accounts Receivable $980 Extermination Service Revenue $980
9. Utilities Expense $230 Cash $230
10. Truck Expenses $145 Cash $145
11. Accounts Payable (Low Glow Chem Co.) $600 Cash $600
12. Truck Expense $131 Cash $131
13. Cash $1,400 Extermination Service Revenue $1,400
14. Cash $500 Accounts Receivable $500
15. Salary Expense $900 Cash $900
Economists look at any situation in terms of its component parts: the people making decisions, the environment in which they're making those decisions, and the goods or services being exchanged. For example, think about doing your laundry. Which of the following laundry-related items are nondurable goods?
a. A washing machine
b. Having a pair of pants dry-cleaned
c. A T-shirt
d. A clothes dryer
Implement anyone principle from Industry 4.0 Six Design Principles on any organization?
Answer:
There is no principal in this room.
Explanation:
Come and get it https://app.conversion.ai/
1. Describe how a global project can be more complex than a project performed within just one country. How might these elements affect the successful outcome of the global project
Answer:
Globalization alters the project's characteristics. Multinational and multilingual initiatives are possible in global projects. Managers must be able to communicate with individuals from diverse nations.
A manager requires a different set of skills to manage projects on a global scale. The following are things he should be aware of:
Cultural sensitivity
Learn about the other organizations' traditions.
ability to operate in a fast-paced, unpredictably changing workplace
Create a productive team.
Develop a sense of trust
All of these elements are equally crucial for the project's worldwide success.
The initiatives that are held at a worldwide level are more difficult.
Select the correct point on the graph. Which point on the graph indicates the lowest quantity supplied of goods?
Answer:
Point A
Explanation:
The supply curve given above shows the correlation between the cost of goods (on the vertical axis) and quantity of goods supplied (on the horizontal axis).
From the graph, we can see that as the price of the goods increases, the quantity that is supplied in pounds also increases, and vice versa.
The lowest price correlates with the lowest quantity supplied. Therefore, at point A on the graph, we have the lowest quantity supplied of goods.
The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $43,000 are expected. The partnership balance sheet at the start of liquidation is as follows:
Cash $39,000 Liabilities $179,000
Accounts receivable 69,000 Butler, loan 39,000
Office equipment (net) 59,000 Butler, capital (25%) 95,000
Building (net) 155,000 Osman, capital (25%) 39,000
Land 145,000 Ward, capital (50%) 115,000
Total assets $467,000 Total liabilities and capital $467,000
Required:
Prepare a predistribution plan for this partnership
Answer:
Butler, Osman, and Ward Partnership
Predistribution Plan:
Total assets realized (assumed) $467,000
Less liquidation expenses 43,000
Liabilities 179,000
Butler, loan 39,000
Cash available for distribution $206,000
Butler, capital (25%) 84,250 ($95,000 - $10,750)
Osman, capital (25%) 28,250 ($39,000 - $10,750)
Ward, capital (50%) 93,500 ($115,000 - $21,500)
Explanation:
a) Data and Calculations:
Expected liquidation expenses = $43,000
Cash $39,000
Accounts receivable 69,000
Office equipment (net) 59,000
Building (net) 155,000
Land 145,000
Total assets $467,000
Liabilities $179,000
Butler, loan 39,000
Butler, capital (25%) 95,000
Osman, capital (25%) 39,000
Ward, capital (50%) 115,000
Total liabilities and capital $467,000
Predistribution Plan:
Total assets realized (assumed) $467,000
Less liquidation expenses 43,000
Liabilities 179,000
Butler, loan 39,000
Cash available for distribution $206,000
Butler, capital (25%) 84,250 ($95,000 - $10,750)
Osman, capital (25%) 28,250 ($39,000 - $10,750)
Ward, capital (50%) 93,500 ($115,000 - $21,500)
b) Each partner will share in the liquidation expense according to their profits and losses sharing ratios. This will reduce their capital account balances and show the net cash they will collect upon liquidation. Note that this plan is based on the assumption that all the assets will be completely realized, that is, without any loss.
Exercise 9-15A (Static) Using the current ratio to make comparisons LO 9-7 The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills
Answer:
a. 1.5 and 1.8
b. Montana
Explanation:
Below is the calculation for the current ratio:
a. Formula used, Current ratio = Current assets / Current liabilities
Current ratio of Kansas = 59000 / 40000 = 1.5
Current ratio of Montana = 78000 / 43000 = 1.8
b. The company that has a higher current ratio will have a greater likelihood to pay bills so Montana is the correct answer.
Five years ago, when the relevant cost index was 120, a nuclear centrifuge cost $40,000. The centrifuge had a capacity of separating 1500 gallons of ionized solution per hour. Today, it is desired to build a new centrifuge with capacity of 4500 gallons per hour, but the cost index now is 300. Assuming a power sizing exponent to reflect economies of scale, x, of 0.75, use the power sizing model to determine the approximate cost (expressed in today's dollars) of the new reactor.
Answer:
The approximate cost (expressed in today's dollars) of the new reactor is $227,950.71.
Explanation:
This can be calculated as follows:
Cost of centrifuge with 4500 capacities 5 years ago / Cost of centrifuge with 1500 capacities 5 years ago = (Capacity of centrifuge with 4500 capacities / Capacity of centrifuge with 1500 capacities)^Power sizing exponent
Cost of centrifuge with 4500 capacity 5 years ago / $40,000 = (4500 / 1500)^0.75
Cost of centrifuge with 4500 capacities 5 years ago / $40,000 = 2.27950705695478
Cost of centrifuge with 4500 capacities 5 years ago = 2.27950705695478 * $40,000 = $91,180.28
Therefore, we have:
Cost of centrifuge with 4500 capacities now = (Cost index now / Cost index 5 years ago) * Cost of centrifuge with 4500 capacities 5 years ago = (300 / 120) * $91,180.28 = $227,950.71
Therefore, the approximate cost (expressed in today's dollars) of the new reactor is $227,950.71.
Beaverton Lumber purchased a milling machine for $35,000. In addition to the purchase price, Beaverton made the following expenditures: freight, $1,500; installation, $3,000; testing, $2,000; personal property tax on the machine for the first year, $500. What is the initial cost of the machine?
Answer:
$41,500
Explanation:
Calculation to determine What was the initial cost of the machine to be capitalized
Purchase price $35,000
Add Freight $1,500
Add Installation $3,000
Add Testing $2,000
Total Cost $41,500
Therefore the initial cost of the machine is $41,500
You have just started a new job and plan to save $5,200 per year for 36 years until you retire. You will make your first deposit in one year. How much will you have when you retire if you earn an annual interest rate of 9.54 percent?
a. $1,331,411.17
b. $1,394,509.68
c. $1,346,423.14
d. $1,268,312.65
e. $1,333,878.83
Answer:
$1,394,509.68
Explanation:
Savings amount = $5200
Period = 36 years
Interest = 9.54 percent
We solve for the future value of the annuity
= $5200[(1+0.0954)³⁶-1/0.0954]
= 5200 x [1.0954³⁶-1/0.0954]
= 5200 x 268.1749
= 1,394,509.681 dollars
Therefore after retirement and at an interest rate of 9.54 percent, you would be earning 1,394,509.681 dollars.
Option b.
An analyst feels that Brown Company's earnings and dividends will grow at 25% for two years, after which growth will fall to a constant rate of 6%. If the projected discount rate is 10%, and Brown's most recently paid dividend was $1, the value of Brown's stock using the multistage dividend discount model is closest to:____.
A. $31.25.
B. $33.54.
C. $36.65.
Answer:
C. $36.65
Explanation:
Calculation to determine what the dividend discount model is closest to:
Dividend discount model =$1(1.25) / 1.1 + [$1(1.25)2/ (0.10-0.06)] / 1.1
Dividend discount model = $36.65
Therefore the value of Brown's stock using the multistage dividend discount model is closest to:$36.65
PART A. MULTIPLE CHOICE - 15 MARKS
1. Company orientation does not include which topic below?
Economic Factors
b. Fringe Benefits
C. Occupational Health and Safet
d. None of the above
what is the answer?
Answer: a. Economic factors
Explanation:
Company orientation refers to training that is given to new employees to better prepare them to work in the company and be as efficient as possible.
It includes things like occupational health and safety so that the employee may know how best to behave so as not to cause accident or get injured by one. It also includes telling the employees of the various fringe benefits that might accrue to them.
It would not include economic factors as these as not specific to the company.
Define the term creativity
Answer:
Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others.
Answer:
Creativeness is defined as the tendency to generate or recognize ideas, alternatives, or opportunities which can be useful for problem-solving, communication, and for fun with others.
Explanation:
Examples include creative thinking: problem-solving, writing, visual art, communication skills, and openness.
In 2019, website and moving development, web production, user interface, and interaction design as well as design and visual design will be the main fields for creative grabbing.
Bayside Restaurant LLC is a limited liability company. Its sole member is Conrad. For federal income tax purposes, unless the firm indicates otherwise, it will automatically be taxed as:_________ a. a corporation. b. a person. c. a partnership. d. a sole proprietorship.
Answer:
D)sole proprietorship
Explanation:
From the question we are informed about Bayside Restaurant LLC who is a limited liability company. Its sole member is Conrad. For federal income tax purposes, In this case, unless the firm indicates otherwise, it will automatically be taxed as sole proprietorship.
A limited liability company can be regarded as popular business structure
which gives benefits of a partnership as well as benefits of corporation. It reffered to as is a newer business structure with several benefits to its members. It is been governed by the individual states with recognition in all states. An limited liability company give room for pass-through taxation of a partnership as well with limited liability of a corporation.
A sole proprietorship can be regarded as " sole trader" or "proprietorship". It can be explained as an unincorporated business, whereby there is just one owner that do pays personal income tax on the earned profit from the business. A sole proprietorship is regarded as the easiest type of business that can be to established due to a lack of government regulation.
