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3 years ago

Explain how TWO factors have determined the form of ownership of the business

Business

1 answer:

Karolina [17]3 years ago

8 0

Answer:

The two factors that determine the form of ownership of a business are;

1. Start-up costs

2. Level of control desired

Explanation:

The form of ownership of a business defines the structure with which the business will be governed. There are different form of business ownership that exist, namely; sole proprietorship, partnerships and corporations. They all differ in different aspects as shown;

1. Sole proprietorship

A sole proprietorship as the name suggests is a business structure where there is only one owner. The owner is in charge of the business profits and liabilities. It is generally a simple business structure that needs a small company, where filing tax returns are very easy.

2. Partnerships

A partnership is a business structure where two or more parties come together to form a business. The parties are responsible for the profits depending on the amount contributed by each party. Each individual always pool their resources towards the successful completion of a given project therefor each party is liable for their own profits and risks.

3. Corporations

Corporation are similar in a way to partnerships since they involve two or more parties with the major difference being that a corporation is a separate legal entity. So the liability is always to the corporation itself and not to the parties that constitute the corporation.

Two factors that determine the form of ownership of the business are;

1. Start-up costs: if you intend to minimize the cost of starting up you business then a sole proprietorship is the best option due to its simplistic nature and very minimal start-up expenses.

2. Level of control desired: Depending on the level of control one would like to have in the business regarding decision making and the daily operations of the business. If one needs a larger level of control, the best option would be sole proprietorship, while minimal control would require a coorporation form of ownership.

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On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 77,000 shares authori

Vikki [24]

Answer:

See the explanation below:

Explanation:

1. Prepare journal entries to record the following transactions for Sherman Systems

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Details Dr ($) Cr ($) 

Treasury Stock (5,500 × 30) 165,000

Cash 165,000

To record the repurchase of own common stock

b. Sold 1,125 treasury shares on November 1 for $36 cash per share.

Details Dr ($) Cr ($)

Cash (1,125 × 36) 40,500

Treasury Stock (1,125 × 30) 33,750

Paid-in Capital from Sale of Treasury Stock 6,750

To record the sale of treasury stock.

c. Sold all remaining treasury shares on November 25 for $25 cash per share.

Details Dr ($) Cr ($) 

Cash (4,375 × 25) 109,375

Paid-in Capital from Sale of Treasury Stock 6,750

Retained Earnings 15,125

Treasury Stock 99,000 (4,375 × 30) 131,250

To record the sale of the remaining treasury shares

Kindly note that there is a balance of $6,750 in the Treasury Stock Paid-in Capital account. Since it is utilized, the remaining deficit will show in Retained Earnings.

2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.

Details $

77,000 issued authorized common stock–$10 par value 770,000

Paid-in capital in excess of par value, common stock 241,000

Retained earnings 904,000

Treasury stock (165,000)

Total stockholders’ equity 1,750,000

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Mandarinka [93]

Answer:

b. $124,120

Explanation:

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3 years ago

Trey has two dependents, his daughters, ages 14 and 17, at year-end (2018). Trey files a joint return with his wife.What amount

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Answer:

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$2,000 since only one of your daughters qualifies for the child tax credit (must be under 17 at year end).

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3 years ago

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Answer:

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I hope my answer helps you

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3 years ago