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3 years ago

Forms of Business Organization

Business

1 answer:

chubhunter [2.5K]3 years ago

6 0

Answer:

<h2>Forms of Business Organization </h2>

1. The basic concepts of financial management are the same for all businesses, regardless of how they are organized. However, a firm's legal structure affects its operations.

The main forms of business organizations are: (1) proprietorships, (2) partnerships, (3) corporations, and (4) limited liability companies (LLCs) and limited liability partnerships (LLPs). In terms of numbers, most businesses are______proprietorships_. However, based on the dollar value of sales, most business is done by_corporations____.

Businesses are frequently started as__Limited Liability Companies____and then converted to_Corporations_____when their growth results in disadvantages outweighing advantages.

2. A proprietorship has three important advantages: (1) It is easily and inexpensively formed, (2) it is subject to_less____government regulations, and (3) it is subject to lower income taxes than are_corporations_____.

However, a proprietorship also has three important limitations: (1) A proprietor has_unlimited_____personal liability for the business' debts. (2) The life of the business is limited to the life of the individual who created it. (3) A proprietorship has difficulty obtaining large sums of capital so proprietorships are used primarily for small businesses.

3. A partnership has two important advantages: (1) It is easily and inexpensively formed and (2) its income is allocated on a pro rate basis to partners and taxed on a(n)_individual____basis so the partnership avoids higher_corporate____income taxes. A partnership has four important disadvantages: (1)_Unlimited_____personal liability, (2)_Limited____life, (3) difficulty of transferring ownership, and (4) difficulty of raising large amounts of capital.

4. A corporation has the following advantages: (1)_Unlimited____life, (2) ownership that is easily transferred through the exchange of stock, (3)_Limited____liability, and (4) can_easily_____raise large amounts of capital to operate large businesses. Its disadvantages are: (1) Corporate earnings may be subject to_corporate_____taxation and (2) setting up a corporation and filing required state and federal reports is complex. Large corporations are known as C corporations. However, as an aid to small businesses Congress created S corporations.

5. Limited liability corporations (LLCs) and limited liability partnerships (LLPs) have limited liability protection like_corporations_____but are taxed like__proprietorships____. Investors in an LLC or LLP have votes in proportion to their ownership interest. LLCs and LLPs have been gaining in popularity, but large companies still find it advantageous to be_formed into_____corporations because of advantages in raising capital for growth.

Explanation:

The above are forms of business organization through which investors can realize their investment dreams.

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The fed’s efforts to manage interest rates and thus the availability of credit is known as?

SIZIF [17.4K]

The fed’s efforts to manage interest rates and thus the availability of credit is known as monetary policy.

To control the total quantity of money in circulation, promote economic growth, and put into action policies like raising interest rates and changing bank reserve requirements, a nation's central bank employs a collection of tools known as monetary policy. The three main tools of monetary policy are the discount rate, reserve requirements, and open market activities.

The Fed influences the cost and accessibility of credit and money to maintain a strong economy as the nation's monetary policy regulator. The three objectives of monetary policy are to curb inflation, moderate employment levels, and maintain long-term interest rates.

To know more about monetary policy refer to: brainly.com/question/28038989

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2 years ago

On January 1, 2018, Olympic Insurance Company granted 30,000 stock options to certain executives. The options are exercisable no

deff fn [24]

Answer:

The additional information for this question is:

January 1, 2016 $14

December 31, 2016 15

What amount should Olympic recognize as compensation expense for 2016?

The correct answer is $50.000

Explanation:

To find this figure, we take as a reference the price of the fair value of the options that is $ 5 on the grant date, multiplied by the options on the shares totaling $ 30,000. Then, it must be divided between the award period that according to the problem is 3 years (2018-2021). This operation results in a total of $ 50,000 that should be recognized as compensation.

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3 years ago

Which of the following costs is often important in decision making, but is omitted from conventional accounting records? A. Fixe

-Dominant- [34]

The correct option is B - Opportunity Cost

<u>Explanation:</u>

Generally, an opportunity cost is the benefit that you gave up when you pass on that option in favor of another option. For instance, by choosing to purchase furniture instead of taking a vacation comes at the cost of not experiencing the relaxation and fun associated with a vacation. All options have opportunity costs (getting married instead of staying single, investing in school instead of retirement, etc).

Everyone should know that opportunity cost is a very important concept that doesn’t just have its application in economics; you can apply it to all aspects of your daily life. Whether you’re cooking, eating, playing soccer, going to the movies, or hitting the gym, so long as you’re breathing, evaluating the choices you’re presented with is an inevitability, whether conscious of it or not.

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3 years ago

William is a single writer (age 35) who recently decided that he needs to save more for retirement. His 2019 AGI before the IRA

Paul [167]

Answer:

The maximum contribution is $3,850

Explanation:

The contribution eliminate isn't pertinent if the single citizen under age 50 doesn't take an interest in the business supported arrangement and most extreme measure of $5,500 can be asserted for charge year 2019.

As Williams takes an interest in the business supported arrangement and he is under age 50, the IRA contribution will eliminate for money above $63,000 up to $73,000.The most extreme breaking point is $5,500 .

Compute the contribution as follows:

[($66,000 - $63,000) / ($73,000 - $63,000 )] × 100 = 30%,

Thus, 30% contribution will phase out and 70% of maximum limit is allowed. Therefore, maximum contribution is $5,500 x 70%, i.e. $3,850.

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3 years ago

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andreev551 [17]

Answer:

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A proposition of fact is the argument that tries to convince the audience about a course of action which the argument maker desires everyone must accept. So in this scenario, Janet brings forward a solid argument which is supported by the accident outcome and this argument can be used to convince the audience.

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3 years ago