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worty [1.4K]
4 years ago
10

2. Why do many entrepreneurs initially set up their businesses as sole proprietorships? Why do many successful entrepreneurs eve

ntually decide to convert their sole proprietorship to some other form of ownership such as a corporation or LLC?
Business
1 answer:
KonstantinChe [14]4 years ago
5 0

Answer: a) They have certain advantages

b ) it is wiser as the company grows

Explanation:

a) Many entrepreneurs usually start as Sole Proprietors for a myriad of reasons. The main reasons are, it is the cheapest and least complicated business to start. The investment can be low and government regulations governing them are not as right. They allow the proprietor to keep all the profit. As the 100% owner of the business, the Proprietor gets to keep all the profits made from the venture without having to share with shareholders. This is an extra incentive. Emotionally wise too there is another reason, Pride. The feeling of Pride in owning one's own business is another reason many entrepreneurs start as Sole Proprietorship.

b) As time goes on though and their venture gets successful, many entrepreneurs see it fit to convert to some other form of ownership such as an LLC or a Cooperation because there are certain advantages that follow. Some of those are, it is easier to attract investment which is needed for growth. If people see that a company has a capable group of people running it or if it is a public company, investment comes easier. There are also tax benefits for switching to such ownership structures. Most importantly perhaps is that it limits the liability of the Entrepreneur should the business go into some bad times meaning that all the losses will not be carried by the entrepreneur alone as would have been the case in a sole proprietorship.

If you have any questions or need any clarification, do react or comment.

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Suppose that the equilibrium price in the market for widgets is $5. If a law increased the minimum legal price for widgets to $6
dmitriy555 [2]

Answer:

c. might increase or decrease

Explanation:

Equilibrium price is the price at which quantity demanded equals quantity supplied in a competitive market.  

Producer surplus is the excess of revenue realized from the sales of the equilibrium quantity at a price higher than the equilibrium price.  

The producer surplus may increase or decrease. It may increase if the quantity demanded, do not decrease. It may decrease if the quantity demanded, decreases.

8 0
4 years ago
Jack holds an ownership interest of 59​% and Teresa holds an ownership interest of 41​% in the J and T Partnership. This​ year,
tatiyna

Answer:

Jack holds an ownership interest of 59​% and Teresa holds an ownership interest of 41​% in the J and T Partnership. This​ year, in order to further develop the​ business, Jack contributes an additional $ 7,200 and Teresa contributes an additional $ 2, 900 to the partnership. Which of the following is true of this​ scenario - the $7,200 by Jack and $2,900 by Teresa will be recorded as an individual contribution - option A

Explanation:

Based on the information given by the question, there would be an addition to Jack and Teresa's capital, since the individual contribution is being done by jack and teresa.

Therefore, the $7,200 by Jack and $2,900 by Teresa will be recorded as an individual contribution - option A.

4 0
3 years ago
A teacher writes the results of a test on the board: 7 students received a’s, 10 students received b’s, 18 students received c’s
ElenaW [278]

Answer:

mode

Explanation:

The mode is the most common value in a data set. In this case, the frequency distribution was 7 A's, 10 B's, 18 C's, 4 D's and 1 F, since C is the most common grade, it is the mode.

Only if this was a normal distribution, the mode should be equal to the mean and the median. In this case the median is also C (the number in the middle), but if we assign numbers to the grades (A=5, B=4, C=3, D=2 and F=1) the mean = 3.45.

5 0
3 years ago
Read 2 more answers
Faye’s bank charges her a $2.25 service fee every time she uses an out-of-network ATM. If Faye uses an out-of-network ATM twice
murzikaleks [220]

Answer:

d. $234.00

Explanation:

The computation of the service fees every year is shown below:

= Service fee × weekly charge method × total number of weeks in a year

= $2.25 × 2 × 52 weeks

= $234

Since we have to compute for the year so we multiplied all three above components. Moreover, it is given in the question that if Faye use out of network than the bank service charge will be double, so we multiplied it by 2

4 0
3 years ago
Ultimate Butter Popcorn issues 7%, 15-year bonds with a face amount of $57,000. The market interest rate for bonds of similar ri
pishuonlain [190]

Answer:

$52,440

Explanation:

Calculation of what price will the bonds issue

Market rate of 8% ×$57,000

=$4,560

Hence,

$57,000-$4,560

=$52,440

This means that the bonds price will be issue at $52,440

Calculation for Interest payment :

($57,000 × 7% × ½ year) = $1,995

Calculation for the Market interest rate:

8%/2 which is the semi annual periods = 4%

Calculation of the Periods to maturity:

(15 years × 2 periods each year) = 30

Therefore the price that the bonds will be issued is $52,440

5 0
4 years ago
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