Answer:
1. Lack of ownership
2. Higher taxation
3. Legalities and formalities
Explanation:
An incorporated company is one that has a separate legal entity from that of its owner and shareholders. Disadvantages of an incorporated company include:
- <em>Lack of ownership</em>
An incorporated business is a separate entity from its owner. Hence, separate bank accounts would be required along with separate business identification since personal identification would not be sufficient. At the same time, personal funds must be kept separate from business funds. Mixture of the two is an offense against the law. Also, as shareholders are involved, they may have voting rights, hence, the owner will not have a complete say in all business activities.
Incorporated companies are expected to pay higher taxes whilst others may have minimum taxable limits. The owner will have to pay income tax as well as corporate taxes. They will also accumulate other expenses such as accounts and legal fees whilst processing these complex taxation methods.
- <em>Legalities and formalities</em>
Incorporating a business in itself requires complex procedures and a lot of paperwork. After this has been accomplished, the company is still expected to follow strict codes of conduct such as those provided by the Companies Act. This would include the way borrowings and lending occur, investments, dividend provisions, meetings and audits. They will also have to register documents under the Registrar of Companies.
Answer:
cost of goods sold = $580
Explanation:
The cost of the goods sold means the cost price of the total sales volume. As the company uses FIFO (First-in, First-out) method and also uses the perpetual inventory system, the cost of goods sold =
Cost of goods sold =
20 units × $19 = $380 (The price is from November 1)
10 units × $20 = $200 (The price is from November 10)
The total cost of goods sold (30 units) = $580
Answer:
the freedom for individuals to choose businesses, the right to private property, profits as an incentive, competition, and consumer sovereignty.
Explanation:
Answer:
a. Equity alliance
Explanation:
Equity alliance -
It is the process , in which one of the company take the equity stake of the other company and vice versa , is referred to as equity alliance .
Due to this , the company becomes shareholder and stakeholder of each other .
The share acquired is the minor one , so that the company still have the power of decision making .
Hence , same case is shown in the question ,where the Moon Star Products Inc.buys the 40 % of the stock of Gold Logistics .
Answer:
The accounts receivable turnover rate is 21.73
Explanation:
The formula for accounts receivable turnover is
365/Average days to collect.
This way we can find how many times a year does the company collect payments for its accounts receivable, so when we divide the total number of days in a year by the average number of days to collect we can calculate how many times we collect payment for accounts receivable.
In the question we are given the average days to collect which is 16.8
We have to put that into a formula
365/16.8=21.73
