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4 years ago

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.

You might be interested in

Under the constant-money-growth-rate rule, the annual money supply will be constant at the average annual growth rate of:_______

tiny-mole [99]

Answer:

real GDP

Explanation:

The above rule was proposed by Milton Friedman that the money supplied by the central bank be increased by constant percentage on annual basis. In other words, constant money growth rate rule suggested money supply growth rate be equal to GDP growth rate annually.

According to Friedman, monetary policy contributes to fluctuation in an economy. He suggested that the best way to stabilize a fluctuating economy is to allow the central bank increase money supply in the long run by a targeted amount annually irrespective of the situation of the economy.

6 0

4 years ago

Andrina always spends 30 % of her income on thingamabobs. Assume that her income increases by some percentage while the price of

Leni [432]

Answer

What is Income Elasticity of Demand?

Income elasticity of demand is the ratio of percentage change in quantity of a product demanded to percentage change in the income level of consumer. It is a measure of responsiveness of quantity demanded to changes in consumers income.

Income elasticity of demand indicates whether a product is a normal good or an inferior good. When the quantity demanded of a product increases with an increase in the level of income and decreases with decrease in level of income, we get a positive value for income elasticity of demand. A positive income elasticity of demand stands for a normal (or superior) good. When the quantity demanded of a product or service decreases in response to an increase and increases in response to decrease in the income level, the income elasticity of demand is negative and the product is an inferior good.

Formula

Income Elasticity of Demand Ei%\ Change in Quantity Demanded%\ Change in Consumers Income

Percentages are calculated using the mid-point formula, i.e. by dividing the change in quantity by average of initial and final quantities, and change in income by the average of initial and final values of income. Therefore:

Income Elasticity of Demand - Ei = Qf - Qi ÷ Qf + Qi ÷ 2 ÷ If - Ii / If + Ii ÷2

Income Elasticity of Demand - Ei = % Change in Quantity Demanded ÷ % change in consumer Income

Where:

Qf - is the final initial quantities demanded of the product,

Qi - is initial quantities demanded of the product,

If - is the final incomes of consumer

Ii - is the initial incomes of consumer.

∴

Question

What is her income elasticity of demand for thingamabobs?

Solution:

From the Problem, it can be deduced that -

Qf - assume it to be 60 since it is not given

Qi - assume it to be 50 thingamabobs?

If - assume it to be 40% since it is not given

Ii - 30%

Assume the % increase in Income to be

∴

Ei = 60 -50/ 60 + 50 ÷ 2 ÷ 40 - 30 / 40 + 30 ÷ 2

Ei = 10/110 /2 ÷ 10/70 ÷ 2

Ei = 10/11 X 70/10 ÷ 2

Ei = 10/55 x 14

Ei = 28/11 = 0.73%

Therefore the Income elasticity of demand for Adrina is 0.73 %

5 0

3 years ago

Two firms with identical capital intensity ratios are generating the same amount of sales. However, Firm A is operating at full

Gemiola [76]

Answer:

True

Explanation:

Firm A is operating at full capacity, if its sales keep increasing, then t will need to invest to expand its production capacity. Since firm B is operating below full capacity level, if its sales keep increasing it will have some spare production capacity it can use before operating at full capacity.

Therefore firm A will need to invest in an expansion of its production capacity while firm B can keep operating without new investments.

7 0

3 years ago

In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be:

ser-zykov [4K]

In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be higher than its target position

Option B

Explanation: 

Negotiation is a political dialogue that addresses a problem in a way acceptable to both sides. That group tries in a discussion to convince the other to adhere to its views. Both parties involved tend not to argue, rather seek to find some kind of agreement by mediation.

Talks require others, so that one side is always in the forefront of the talks. Nevertheless, even when the concession is marginal, the other should surrender.

Negotiation parties can differ. These may include negotiations between purchasers or even between the government of several or more nations, employers and future employees.

6 0

3 years ago

You accept a new job with a starting salary of $53,000. You receive a 4% raise at the start of your second year, a 5.5% raise at

vredina [299]

Answer:

a. Salary for the second year:

Salary is to increase by 4% in second year.

= 53,000 * (1 + 4%)

= $55,120

b. Third year salary:

Second year salary will increase by 5.5%

= 55,120 * (1 + 5.5%)

= $58,151.60

c. Fourth year salary:

Third year salary to increase by 11.1%

= 58,151.60 * (1 + 11.1%)

= $64,606.43

8 0

3 years ago