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sweet [91]
3 years ago
5

What is the primary goal of financial management for a sole proprietorship? maximize net income given the current resources of t

he firm decrease long-term debt to reduce the risk to the owner minimize the tax impact on the proprietor maximize the market value of the equity minimize the reliance on fixed costs?
Business
1 answer:
Ludmilka [50]3 years ago
4 0

A sole proprietorship has the single owner of the business and the main goal of the owner is to increase the value of his capital invested in the business which is also called as Equity.  

The objective of maximization include the maximization of net income given the current resources of the firm  

A proprietorship has only one owner so there is no need to decrease long-term debt to reduce the risk to the owner.  

The proprietor wants to earn more income and he will have to pay more taxes so the goal is not to minimize the tax impact on the proprietor.  

Similarly, the goal is also not to minimize the reliance on fixed costs.

Hence the correct answer is:

Maximize the market value of the equity  


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Cambridge Co. uses the allowance method. During January 2019, Cambridge writes off a $640 customer account balance when it becom
yan [13]

Answer:

The correct answer is option (a).

Explanation:

According to the scenario, computation of the given data are as follows:

Allowance method shows that, if account is written off, then Accounts receivable account gets credited and Allowance accounts gets debited.

Here, both accounts are or balance sheet items.

So, it will not affect any expenses account.

8 0
4 years ago
The interest rate on a 10-year corporate bond for a company with AA rating will be higher than for a 10-year bond for a company
Alex_Xolod [135]

Answer:

The interest rate on a 10-year corporate bond for a company with AA rating will be higher than for a 10-year bond for a company with a BBB- rating.

True

5 0
4 years ago
If a business person wants to get information about a special product to a wide variety people across a large geographic range,
Westkost [7]

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The internet is the fastest way a business can advertise it's products to a global audience. The internet is a wireless interconnection of computers across the Earth, where communication is made easier and information is shared.

4 0
3 years ago
In almost all multiple cash flow calculations, it is implicitly assumed that the cash flows occur at the _____ of each period.
Sladkaya [172]

It is assumed that the cash flows occur at the end of each period.

<h3>What is the occur period of the cash flow?</h3>

Cash flow is the statement depicts the complete information about the money received or being spent by the company during the period of time.

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It is generally occur in period of 90 days.

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5 0
2 years ago
When one person seeks to satisfy his or her own interests regardless of the impact on the other parties to the conflict, that pe
Dimas [21]

Answer:

Option A is correct one.

Competing

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When one person seeks to satisfy his or her interests regardless of the impact on the other parties to the conflict, he is competing. The competition involves authoritative and assertive behaviours.

8 0
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