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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.

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Which of the following is true of taxes and subsidies? Group of answer choices Politicians like to levy taxes, but they are relu

Vadim26 [7]

Answer: If you tax something, you will get less of it; if you subsidize an activity, you will get more of it

Explanation:

Taxes are the levy that governments impose on people or firms. Subsidies are financial aid to companies in order to boost production and reduce price.

It should be noted that if you tax something, you will get less of it; if you subsidize an activity, you will get more of it. For example of an income is taxed, the owner of the income will geta lesser amount as tax will be removed.

6 0

3 years ago

Money Market Mutual Find Balances held by Businesses $100 Money Market Mutual Fund Balances held by Individuals 220 Currency in

oksian1 [2.3K]

Answer:

Explanation:

M2= 60+70+50+220+80= $480

hence option A is correct

MZM = $480-80+100= $500

4 0

3 years ago

Read 2 more answers

Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .75. The cost of equity is 11.6 p

raketka [301]

Answer:

the capital structure weight of the firm's equity will be 57.14 %.

Explanation:

Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.

A debt–equity ratio of 0.75 means:

Debt : Equity = 0.75 : 1

The Total Ratio will be = 0.75 + 1.00

= 1.75

Therefore, the capital structure weight of the firm's equity will be :

Equity Weight = Equity Ratio ÷ Total Ratio

= 1.00 ÷ 1.75

= 0.5714 or 57.14 %

7 0

3 years ago

North Dakota Corporation began operations in January 2020 and purchased a machine for $27,000. North Dakota uses straight-line d

andrew-mc [135]

Answer and Explanation:

The Journal entry is shown below:-

Income tax expense Dr, $40,025

To Deferred tax liability $2,025

To Income tax payable $38,025

(Being income taxes for the year 2020 is recorded)

Working note:-

Excess depreciation = ($27,000 × 50%) - ($27,000 ÷ 4)

= $13,500 - $6,750

= $6,750

For Deferred tax liability = $6,750 × 30%

= $2,025

For Income tax payable = ($157,000 - $23,500 - $6,750) × 30%

= $126,750 × 30%

= $38,025

6 0

3 years ago

Jeri and Knute are members of Lighthouse Tours LLC, a limited liability company. With respect to Lighthouse Tours’s liability, a

slava [35]

Answer:

Personal liability

Explanation:

Jeri and Knute are shareholders in lighthouse tours LLC. As lighthouse tours LLC is a limited liability company, Jeri and Knute enjoy limited liability.

Legally, lighthouses LLC is independent of its shareholders. It has the right to own assets and incur liabilities. Should the company get to the dissolution stage, its assets will be used to settle its obligations. If the assets of the company are not sufficient, the shareholders' private properties cannot be used to pay the debts. Jeri and Knute will be liable only to the extent of capital contribution.

8 0

2 years ago