The two primary factors affecting an entrepreneur choice of legal ownership for a venture are TAXES AND LEGAL LIABILITY.
The type of business that an entrepreneur establish will determine the type and the amount of tax that it will be required to pay. The legal liability of the entrepreneur determines the extent to which he can be liable in case he finds himself in a financial mess. The entrepreneur should try and minimize the impacts of these two factors.
Answer:
<em>Consolidated Assets 850,000</em>
Explanation:
We need to calcualte the alue of the purchased portion of Slat.
total assets - non-controlled = proportional owned assets
250,000 - 50,000 = 200,000
The consolidated net assets would be:
Pallet Company 650,000
Slat Company 250,000
non-controlling (50,000)
<em>Consolidated Assets 850,000</em>
Answer:
Gross Income is the answer!
Explanation:
Answer:
See explanation Section
Explanation:
Culver Corporation
Balance Sheet (Current Asset only)
As at December 31, 2017
Particulars $ $
Cash $8,220
Accounts Receivable $97,530
Less: Allowance for
<u>Doubtful Accounts (4,520) </u> $93,010
Prepaid Insurance $6,040
Inventory $34,900
<u>Equity Investments $13,510</u>
Current Assets $155,680
Note: As equity investment will be sold in the next year, it is shown as current assets. Land and patents are property, plant, and equipment.
Answer:
c) Investment in a DPP (Direct Participation Program)
Explanation:
Direct Participation Programs are a form of limited partnership. DPP has the lack of liquidity, since ownership interests are not always freely transferrable and require the approval of a general partner of the DPP. Each of the other items listed are more liquid on a short-term basis. Bonds can be sold, bond fund shares can be redeemed, equities are easily sold in the secondary market, and though CDs are not transferrable, the maximum maturity is 1 year or less, so the client would have short-term access to the funds invested.
