All categories

3 years ago

Difference between sole proprietorship and independent contractor

Business

1 answer:

wariber [46]3 years ago

8 0

Answer:

Explanation:

A sole proprietor is a person who owns, manage, finance and organize a business firm.

It refers to an individual who owns a business that has not been registered as a business entity. Such business includes partnership, limited liability company (LLC) and a corporation.

A sole proprietor is responsible for decision making process of his business and also bears the burden of profit, loss and tax alone.

WHILE

An independent contractor is an individual who works for another individual. An independent contractor provides services to another person but he is not an employee of the other person. An independent contractor is a self employed person who provides professional services to a business organzation.

He is paid based on the amount of work done. Examples of independent contractor includes graphics designer, data analyst, web designer or IT expert.

You might be interested in

The current spot exchange rate is $1.55 = €1.00; the three-month U.S. dollar interest rate is 2 percent. Consider a three-month

Elan Coil [88]

Answer:

The least that this option should sell for is $3,125.

Explanation:

Acording to the data, we have the following:

The current spot exchange is $1.55=€1.00

The call option has a strike price of $1.50=€1.00 and spot price is €62,500

Hence,to calculate the least value this option should sell for we have to calculate the following:

$1.55-$1.50=$0.05

Hence, $0.05*62,500= $3,125.

8 0

3 years ago

Carla Vista Energy Company owns several gas stations. Management is looking to open a new station in the western suburbs of Balt

tatuchka [14]

Answer:

The present Value of the growing annuity= $1,158,092.68

Explanation:

The present value of the growing annuity is going to be computed as follows:

PV = A/(r-g) × (1- (1+g/1+r)^n)

A- annual cash flow- $87,460

g- growth rate - 6.3%

n- number of years =73

r- discount rate - 13.8%

I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity as follows.

A/(r-g) = 87,460/(0.138-0.063) =1,166,133.33

(1- (1+g/1+r)^n) = 1- (1.063/1.138)^73 =0.9931

PV = A/(r-g) × (1- (1+g/1+r)^n)

166,133.33× 0.9931 = 1,158,092.68

The present Value of the growing annuity= $1,158,092.68

6 0

3 years ago

As a general rule, a product ________ strategy seems to work best when the consumer target market for the product is alike acros

vodomira [7]

Answer:

The correct answer is letter "B": product extension.

Explanation:

In International Business, product extension refers to the approach by which a firm introduces its product or service across borders without shaping the product according to the profile of each consumer in each region. Product extension is implemented to expand the business operations of a firm in an attempt of finding new consumers in new markets, thus, generating more profit.

<em>Product extension is likely to work only if customers' preferences and necessities are the same in different countries.</em>

7 0

3 years ago

The statement of cash flows shows the following information: Cash provided by operating activities of $18,200 Cash used by inves

Rudiy27

Answer:

$27,400

Explanation:

The amount of cash at the end of the period is calculated as;

Cash provided by operating activities

$18,200

Cash used by investing activities

($6,700)

Cash used by financing activities

($1,200)

Net increase (decrease) in cash balance

(a) $10,300

Cash at the beginning of the year

(b) $17,100

Cash at the end of the year

c = (a) + (b) = $27,400

8 0

2 years ago

Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Product Tota

Alenkinab [10]

Answer:

Tatum Company

1. The carrying value of inventory at December 31, 2021 is:

$342,000

2. Adjusting Journal Entry:

Debit Inventory write-downs $47,000

Credit Inventory $47,000

To record the write-down of inventory value to LCNRV.

Explanation:

a) Data and Calculations:

Product Total Cost Total Net Reali- LCNRV Write-downs

zable Value

101 $ 154,000 $ 117,000 $ 117,000 $ 37,000

102 111,000 127,000 111,000 0

103 77,000 67,000 67,000 10,000

104 47,000 67,000 47,000 0

Total $ 389,000 $ 378,000 $ 342,000 $ 47,000

7 0

2 years ago