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lilavasa [31]
4 years ago
11

One reason many companies do not organize themselves as an s corporation is that this form of business:

Business
1 answer:
S_A_V [24]4 years ago
7 0

Answer:

S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.

Explanation:

There are specific pre-requisites before a company may apply as an S corporation

  • It implies that corporation shareholders must be U.S. residents only who directly own the shares.
  • Maximum 100 shareholders can be part of S corporation.  
  • The stock options are restricted to one class only.

The limited stock options, no foreign investment challenges and limitation of maximum shareholders create a barrier to open S type corporation. So the answer is S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.

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The Capital Purchase Program carried out under TARP represented an attempt by the federal government to increase the capital of
4vir4ik [10]

Answer:

A. To keep banks with falling asset values solvent.

Explanation:

When a bank is failing it will result in loss of funds not only for the bank but also for customers that have accounts in these banks.

If a bank eventually closes operations as a result of insolvency, they will not be able to pay off the customers. That is where the deposit insurance comes in to settle customers.

The government will have to spend a lot of money reimbursing customers their money.

To avoid this the federal government ensures the capital of banks is maintained to keep banks with falling asset values solvent.

7 0
4 years ago
What is the last step in planning your budget?
Klio2033 [76]
Review and revisions
8 0
3 years ago
What is the main advantage of using e-mail to complain about a service or product?
anzhelika [568]

Unlike conventional mail, email can send your complaint within minutes or seconds to the company.  This is the reason why use of email has become popular.  The reaction to act on the complaint will depend on the company.  Sending an email does not guarantee that they will act on it right away. 

4 0
3 years ago
Refer to the original data.
Slav-nsk [51]

Answer:

Contribution income statement -  Assuming that operations are not automated.

Sales (26,000 units at $30 per unit)                        $780,000

Variable expenses ($409,500/ 19,500 × 26,000)  ($546,000)

Contribution margin                                                  $234,000

Fixed expenses                                                        ($180,000 )

Net operating loss                                                       $54,000

Contribution income statement -  Assuming that operations are automated.

Sales (26,000 units at $30 per unit)                        $780,000

Variable expenses ($18 × 26,000)                         ($468,000)

Contribution margin                                                  $312,000

Fixed expenses ($180,000 + $72,000 )                 ($252,000 )

Net operating loss                                                      $60,000

Explanation:

A contribution Income Statement Shows the contribution (Sales less Variable Costs).

See the Statements for the Assumptions above.

5 0
3 years ago
Which of these is similarity between being self-employed and owning a business?
lys-0071 [83]

The similarity between being self-employed and owning a business out of the above choices is that you or your business produces something. Whether you personally make it or you own a business that produces something, something is being produced. You are your own boss in both situations, you likely make all of the decisions in both but with owning your own business there is a team that can help. Normally if you are self-employed you can't take time off and generate revenue because you are the sole worker.

3 0
3 years ago
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