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Basile [38]
3 years ago
12

One of your business clients has owned and operated his own business as a sole proprietor for over 30 years. He now wants to do

some retirement/succession planning. On the issue of the legal structure/ownership of his business, the best advice for him would be to:
Business
1 answer:
MrRa [10]3 years ago
5 0

Answer:

Incorporating the business and selling the shares to investors to take over as successors

Explanation:

Business incorporation is the legal process through which a business is formed.This allows an incorporated business to sell shares or stocks to interested investors , giving them the power of ownership in proportion to the volume of shares held , and the liability limited to the investment in the business.

It has the advantage over other methods of succession planning in active involvement in the business , limited liability and easier procedures.

You might be interested in
Individuals and companies respond to incentives in order to allocate their scarce resources in ways that provide the __________
MakcuM [25]
Lowest because to show how scarce it is it will have to be low 
7 0
3 years ago
Read 2 more answers
Investment A produced annual rates of return of 4%, 8%, 14% and 6% respectively over the past four years. Investment B produced
Ghella [55]

Answer:

A

Explanation:

The investment A was more risky, but in general they were both pretty much a risk.

With both having a produced annual rates of return in under 10%

Reason for A being the riskier is that his annual rate of return in average was 8%, while B's annual rate was 9%

Difference may seem small, but for bigger investments 1% can be a deal breaker.

8 0
3 years ago
The cash conversion cycle is computed as:
Anna [14]

Answer:

The correct option here is A) Days sales outstanding + Days inventory outstanding - Days payable outstanding.

Explanation:

Cash conversion cycle which is also termed as Net operating cycle or Cash cycle, this cycle tells us about how much time it is going to take for an organization to converts the amount of investment it has made in the inventory and various other resources to cash , which will be generated by sales.

Formula used for calculation =

                             AMOUNT OF SALES OUTSTANDING IN DAYS

                                                  +

                             AMOUNT OF INVENTORY OUTSTANDING IN DAYS

                                                  +

                             AMOUNT OF PAYABLE OUTSTANDING IN DAYS

4 0
3 years ago
County Medical Center received unrestricted contributions of $22,000. The hospital used the contributions to support general ser
umka21 [38]

Answer:

County Medical Center

These unrestricted contributions of $22,000 used to support general services would be reported on the statement of cash flows as:

cash from operating activities.

Explanation:

Unrestricted contributions received by the County Medical Center are funds or other assets given to the Center with no restriction on their use.  Unrestricted contributions are usually directed at the funding of operational expenses, as the County Medical Center demonstrated.  Therefore, they are listed under operating activities in the Statement of Cash Flows.

6 0
3 years ago
A company has the following liabilities at year end: Mortgage note payable; $16,000 due within 12 months $355,000 Short-term deb
Grace [21]

Answer:

The amount that the company should include in the current liability section of the balance sheet is $16,000

Explanation:

The short-term debt that the company is refinancing with long-term debt is non-current and  deferred tax liability arising from depreciation is also non-current and should be disclosed as such in the Balance sheet after the sub-heading long-term borrowings.

Therefore, The amount that the company should include in the current liability section of the balance sheet is $16,000

4 0
3 years ago
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